Need help- Tax Credits

[YummyorSlummy]

Dh is in the forces and posted overseas. I am am applying for a job within the unit (raf) and all of these civilian jobs are tax free. We currently recieve £115 per month in tax credits and we have been told by people on the unit that this will not change as the job is tax free (not paying tax on it so shouldn't affect credits) but when I spoke to an advisor online she was about as clear as mud. She told me that I would still have to declare this income and my claim would be 're-calculated' based on this but wouldn't say whether or not it would go down.Not sure what to believe now as I really don't want to take this job where I would be getting barely any extra anyway after childcare to find that I'm earning practically nothing once the tax credits have gone. Dh is pressurising me telling me to just take it and see but he isn't the one having to put a 2 year old into childcare after being at home with them all this time!

Bump!

I would assume that income is income regardless of whether tax is due on it or not - tax credits are based on gross income with adjustments for anything paid out in childcare. If your new job brings your total household income over certain thresholds it would then affect the tax credit award. By how much you may be able to find out by entering all your information into this Tax Credit Calculator online.

Child tax credit is based on your taxable income. On this basis, if your pay is not counted as income for income tax purposes then I don't think it would be counted for tax credit purposes. I imagine the advisor has not come across a situation where income from employment is not counted as taxable pay. Personally I would phone back and ask to speak to someone more senior and reiterate that your income is not taxable. If they still insist you need to include it then I would put it in writing along with a letter from the people on the unit who advised you, confirming that it is not taxable income.