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Going back to work Feb. only 2 months of financial year left. Are tax, tax credits and Gift Aid worked out on annual income or monthly?

1 reply

EdwiniasRevenge · 27/01/2015 11:04

I have been a FT student so my income for last year was £0 for tax purposes up until Oct.
in Dec I started claiming income based JSA for 6ish weeks. Claim has now ended.

Technically I started working yesterday - but on a supply contract - but they have yet to give me work Hmm. I start a full time post 9 Feb.

I've just been thru the tax credits calculator (and entitled to) and it seems that as my income between now and April (and the whole financial year actually) will only be £4000 max I shall continue to get full tax credit entitlement until April. I was expecting it to go down as I now have a monthly income even though my annual income was low. But I think it makes sense. Does this mean I shall continue to be entitled to FSM and tax credits excemption certificate for NHS treatment until April?

In addition - I was about to fill in a Gift Aid declaratiom for a regular contribution I make...and have now thought I probably can't do that either - I guess my tax code will be 1000L...and I guess that as my annual income will be less than £10,000 I won't pay any tax this year (or at least will get a rebate)? And if I don't pay any tax this year I wont be able to Gift Aid until April?

So I guess I am double checking -
Earnings to date £0
Expected earnings Feb - April less than £4000

But my tax credits will be calculated assuming I have earnt that through the year?
And I won't pay income tax on my earnings because my annual earnings will be lower than tbe £10,000 threshold for basic rate tax?

TIA

OP posts:
EdwiniasRevenge · 27/01/2015 19:38

Bump.

not trying to avoid paying tax. I mainly want to make sure I do the right thing wrt gift aid. It would also be useful to know so I can budget.

OP posts:
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