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If I up my working hours, what effect does it have on tax credits?

(5 Posts)
MrsS01 Thu 30-Jun-11 13:18:16

I need to up my working hours for financial reasons. I currently work 18 1/2 and am looking at working 30 ideally, though may do 37. What impact will this have on my tax credits? I currently receive tax credit for my DS - will it go down if I work more hours? I get the child element for one child and the afterschool fees/childcare element (which I think is now 70% of the cost).

Thanks.

gillya Thu 30-Jun-11 17:03:32

If you ring the tax credit helpline staff will be able to give you some idea of how change of working hours would impact on working & child tax credits.......it is likely to go down if you work more hours (I think)...and from memory the thresholds are 16-30 hrs and 30hrs+.
Though they won't quote you an exact figure, if you call with an anticipated annual salary and hours per week options they will give you approximate figures.

marycorporate Thu 30-Jun-11 17:09:37

have a look at the online child tax credits calculator. It's not always 100% accurate but it's damn near accurate enough. Remember the figure at the end if what you'll receive between now and the end of March so divide by roughly 9 months to get the monthly figure.

ChasingSquirrels Thu 30-Jun-11 20:06:32

put the figures into entitled to and see what it says.
But remember - the 11/12 tax credits are based on 10/11 income unless you either ask for it to be based on 11/12 or your income increases by £10k+.
So it may be that you don't see any impact for 11/12.

Regardless - you should always inform them of any change of circumstances, including changes in income and moving between working hours "thresholds".

gillybean2 Sun 03-Jul-11 04:52:40

If you move from part time to full time (ie 30 or more hours a week) you will get a full time 'bonus' of approx £500 a year I think it is.
ALthough your WTC and CTC will go down, your salary will go up and you'll get the 'bonus'.
I recently went to full time from part time and massively better off this year. I do know that part of it is because it is based on previous year's income so I am using the additional money for stuff that I wouldn't normally budget for (new furniture, clothes etc) knowing full well I won't have so much next year (but will still be better off that I was part time)

Entitled to website is the best place to get some idea of the figures
www.turn2us.org.uk/benefits_search.aspx

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