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Tax credit help

(6 Posts)
TheLittleFriend Wed 25-May-16 13:58:53

My partner is self employed and when my ds starts nursery, I'm planning on starting to work with him. Our overall income will not change (his will go down as he will be paying mine) but my working hours will go from 0 to 15. Does anyone know if this will decrease our tax credits? It might not be worth me doing it if it means we lose them.

Babyroobs Wed 25-May-16 15:41:34

How will it benefit your family if you working isn't actually meaning more money coming in? The only way I can see that it would benefit you is that if you work more than 16 hours then you may be entitled to some extra tax credits for childcare costs unless it is just the free 15 hours which your child is using in which case you don't pay for that anyway. Tax creidts arebased on household income so if your household income isn't changing then your tax credits won't. Will you both be earning at least minimum wage for the hours you both do, as this is something they may check up on.

TheLittleFriend Wed 25-May-16 16:37:29

I will be able to use my personal tax allowance, which may be the only benefit for now (though the theory is that by working, we can grow the business to make more money in the long run). I just don't want that benefit to be outweighed by any cost, like losing tax credits. We won't be paying childcare as it's his 15 hours.

Babyroobs Wed 25-May-16 16:45:16

I think currently even if you are not working you can transfer your personal tax allowance to your husband, it might be worth looking into for this tax year. I'm not sure whether you can backdate it if you didn't use it last tax year.

TheLittleFriend Wed 25-May-16 17:17:22

That's interesting to know, though we are not married, so I imagine would not be able to. Thanks for your help.

Stuck123 Fri 27-May-16 11:24:14

I have to renew my tax credit and I am confused by the other income section. I had language students stay with me last year so had income from that do I have to list that as other income. I got £1200 for it so not taxable but don't know if I have to declare it. Need help

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