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Working hours and tax credits

(6 Posts)
CocoPopsAddict Wed 31-Aug-11 11:25:03

If a couple were earning pretty much the same wages, would it make any difference to tax credits (both working and child) if one was working 36 hours and the other gave up their job, compared to one working 24 hours and one working 12 hours?

CogitoErgoSometimes Wed 31-Aug-11 11:43:02

Best way to judge is to run both scenarios through this Benefits Checker

loveme2 Wed 31-Aug-11 12:45:23

You would loose any childcare payments.

Peachy Wed 31-Aug-11 12:51:19

AS loveme said but also the actual income amounts would amke a difference so you do need the benefit checker.

At 12 hours there's no employment 'bonus' ( these IIRC are currently set at 16 and 30 hours though proposed to change) so it's just a case of the money being counted as income-min fact I don't think you can get childcare under 16 hours can you? Years ago but I couldn;t when I worked 15.

So technically TCs may rise, although probably by very little.

CocoPopsAddict Wed 31-Aug-11 21:54:34

Thanks all.

Would be trying to avoid using childcare anyway. Will use the benefits checker.

CogitoErgoSometimes Thu 01-Sep-11 08:22:21

I think you'll find the amount very similar in both scenarios. However, there's a bigger picture to consider which is that someone giving up their job completely may find it more difficult to re-enter the job market in the future than someone that works part-time looking to increase their hours.

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