Less Tax Credits

[Kayzr]

I have recently gone back to work after ML. I rang TC to let them know that I was only working 12 hours.

Our TCs have gone down by £200 a month, add that to losing £75 a month by going back to work we are going to struggle.

Could this be a mistake or is it normal to lose money due to not working many hours?

Thanks.

[lou031205]

If you are in a couple, then you need to work at least 16 hours each if you want any hope of the child care element of TCs. Otherwise, as long as one of you works over 30 hours, or between you, your hours total 30 then it shouldn't matter. In terms of earnings you will be better off even if you lose £75 per month.

[Kayzr]

I can't do the extra 4 hours a week. There are no hours for me to do it. I really struggled to get back at all. My manager still moans that he had to let me back at all.

If I stop working and DH continues on his 16 hour contract will the TC increase?

[lou031205]

No, if your DH only works 16 hours, you lose the 30 hours element any way. You will get a small increase in TC to reflect your loss of earnings, but overall you will be worse off.

[lou031205]

www.entitledto.co.uk is a great calculator which you can fiddle about with to show you different options.

[Kayzr]

It's bloody rubbish that we're better off if I'm on ML instead of working.

[Kayzr]

On the Entitled to website if I want to work out what we are entitled to if I stop working do I just put £0 in the box for what I will earn this tax year?

[lou031205]

No, you'll have to put in what you have earned so far this year.

To see what you would normally be entitled to, you can pretend your baby is over 1, and put your earnings as £0, and that will give you a rough idea of what it would be next year.

[Kayzr]

Thanks I'll try that out.