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Does anyone know how family tax credit works?

(5 Posts)
RacingSnake Fri 23-Oct-09 21:19:16

Hi. I wonder if someone can tell me the answer to this.
We get family credit - not much, just a couple of hundred pounds a year. I have the possibility of earning £500 extra doing some tutoring this year. What I wonder is, will I lose the family tax credit pound for pound? If so, what with paying for my petrol, lunches, etc, I would actually be worse off and it would be silly to take the work
Has anyone any experience of this?

lou031205 Fri 23-Oct-09 22:06:17

CTC Withdraws at a rate of 39%, so £500 earnings would lose you £195 in CTC, leaving you £305 better off overall, before petrol, lunches, etc.

RacingSnake Sat 24-Oct-09 20:45:56

Thanks. I didn't realize it was possible to know the figure that accurately!

lou031205 Sat 24-Oct-09 23:37:21

Everything you wanted to know and more!

RacingSnake Sun 25-Oct-09 07:23:49

Gosh! I see the withdrawal rate - thanks - but the rest of it hmm No wonder no-one quite understands it!

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