Tax credits question

[LostMyBroomstick]

Hi,

It is looking like I am going to have to give up my role in the NHS and retrain due to ridiculous working hours. We are struggling for childcare and the onslaught of nights and weekends is taking toll on my health. The state of the NHS is crazy and managers are using the staff they have left to fill in rota gaps (we have lost many staff over the last 2 years - only half were replaced with lower grades).

I am thinking of going at the end of March next year. I am planning on retraining and taking another university postgraduate course. DH earns less than I do. How does it work when making a claim for tax credits if earnings were to drop dramatically in the next financial year? Would they still make up wait until the following tax year?

We may not even qualify (I hope we do!) but I am not sure how things work. Do they take into account a sudden change of circumstances?

We have 2 kids.

The first 2.5k drop in income is disregarded , so if you earnt 30k between you this year then 20k next year it would be based on an income of 22.5k. The cut of with 2 kids and no childcare costs is around 32k. However you need to bear in mind that depending where you live then you may have to claim universal credit instead. UC is not great for students as they expect you to take the maximum available maintainence loans and that is counted as income for UC purposes.