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Tax credit question: probably rather a stupid one..

(7 Posts)
solidgoldbullet4myvalentine Wed 18-Feb-09 20:08:59

If you work 16 hours a week, do you get more or less in the way of tax credit than if you work 30 hours a week?

LaaDeDa Wed 18-Feb-09 20:15:11

I think there is a 30 hour element where you get more if you work 30+hours. Think this applies in a joint claim if one partner works more than 30 hours even if the other doesn't or stands alone in a single claim.
Obviously if you earn more though your tax credits may go down in line with your increased earnings even with the 30 hour element.

ihavenewsockson Wed 18-Feb-09 20:16:42

depends on your income.
the 30 +hr element works out about £10 a week.
but if your earnings go up significantly, then the tex credits may go down.

solidgoldbullet4myvalentine Wed 18-Feb-09 21:44:58

OK thanks.

blossomsmine Thu 19-Feb-09 11:30:12

That is an interesting question as my friend has been talking to me about this recently, also on another thread. She works minimum hours and recieves about £160 tcredits per week. She has the opportunity of putting her hours up to 28/30 per week but is worried she may lose out moneywise and she is already struggling.... So difficult, as i presume, once you change hours/notify the tc office you then have to stick with it??

lou031205 Thu 19-Feb-09 11:39:06

No blossomsmine, you just inform them as circumstances change. In general the system is set up so that earned income will give you marginally more than the tax credits you would have had. In general, the more you earn the better off you are overall.

Having said that, this does not apply if you are a lone parent, when often you are better off keeping your hours to about 16-20.

blossomsmine Thu 19-Feb-09 16:07:57

Thanks lousmile.....she is a lone parent so looking at it it seems she would be better sticking at her current hours. Its a shame in a way as i think she wants to do more but of course can't be worse off financially.

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