Tax Credits - do they go up or down?

[MotherFunk]

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they'd go down - by how much would depend on how much your earnings go up by

The worst thing is you have to pay the difference back!

If your earnings go up your tax credits will go down, but not necessarily in that year. I seem to remember working out that I would lose approximately half of any pay increase in lost tax credits. But then when you reach a certain point the tax credit won't change until you fall out of the zone altogether.

Sometimes they can go up, it's all depnding on the circumstance, partners etc. Mine are going to go up soon.

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Yes, but it doesn't reach the point that you actually end up with more money for earning less IYSWIM. You're still better off earning more, usually.

I think the bands are about £2000 apart aren't they?

no, not in my case, i get a low amount, i will gwt more when my income goes up

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The less you earn the more you get.

You won't have to pay it back unless you earn more than £22K than you expect ( they have changed the rules).

you can use this link and play with different scenarios to see what effect working more less etc. will have on your payments.

I am doing a degree, i get them now. When my degree stops in the summer and i earn, i will get more as i will be paying more tax.

How come Fairyfly? Is there a lower threshold as well as an upper one? Or is it to do with the hours you're working?

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