Tax credits and new job

[SpideyMom]

Hi

Just looking for other experiences if possible please?

I feel trapped in tax credits and have been for 7 year and I hate it. HATE IT! I want to get off them completely.

I have recently decided that I need more from life for me and my child and need to better myself. This will include hopefully securing a better job and a better salary.

Coming off tax credits is a goal for me but it doesn't come without its worries. Mainly as it's worked over the year isn't it so I fear overpayments.

I currently earn just under 14k after my pension payments are deducted. I work 30 hours a week.

So for example say I work 6 months at the lower wage and then 6 months in the new job at the higher wage, it will very likely mean I will have been overpayed over the year because of the lower salary for the first 6 months (really hope I am making sense). Obviously I would inform them of any new job or income changes when they occur BUT they are still worked out over the year.

This is all very very early stages but things like this cause me anxiety when finances are concerned so I just want to get my head around it.

Has anybody had any experience of claiming tax credits then part way through the year finding a new job and no longer being entitled to them? So when renewal comes round in April had you been overpayed? And if so how did you have to pay it back, lump sum or installments?

Whilst I'm in the lower paid job I really need the tax credits to help us live very basically. But hopefully if I do get a better paid job I won't need them anymore which is such a dream of mine, however I wouldn't be in a position to but putting aside the equivalent of what's already been paid out to cover being overpayed.

I really home this all makes sense.

Thanks in advance x

Perfectly normal

For tax credits ask them to do a recalculation based on this new salary they will tell you that their calculation is based on last years figures but you can ask for it to be recalculated so you don't get an overpayment

Universal credit is different to get a proper UC calculation when you have a mortgage go to Universal credit essentials on Facebook they have a formula that can help often online calculators are a bit crap

Thank you. I just think the worry I have is that the new salary will likely mean that I'm no longer entitled to them and what I earn by the end of the year will mean the months of being paid TC will all need to be paid back.

And thanks. I thought the nerves were normal. But honestly I can't explain how amazing it felt to have a conversation like it. I felt needed again

Perfectly normal. I am in exactly the same boat and nervous as hell. I keep thinking what if I fail at the job, holding it all together at work and home and then can’t go back to TCs. My kids are older but quite needy due to various SEN issues.
I think it’s a case of finding the right opportunity though. The one I’m going to I’ve worked with on a freelance basis for a few years so they know my work and my foibles, and want me anyway.
Good luck 🤞

It's horrible but I know sometimes we have to take these risks. I'd be a fool not to explore it. Ive actually been approached and the job will be created around the right person. Its what I used to do and was very good at it but my fear is ive been out of it for 10 years. Mainly because I felt like my options were limited due to having a young child. Now with flexibile working and working from home structures there are more opportunities out there.

It's the fear of failing thats causing me lots of anxiety. I cant see any reason why I would but like I said earlier I now how a child and a home to think of. But I also know that if I don't take there risks I will just stay where I am and just get by in life.

I'm so pleased others are finding these opportunities too. Good luck. I hope it works out for you all