Tax Credits - do they go up or down?

[MotherFunk]

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[FAQ]

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

[fortyplus]

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

[Twinklemegan]

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.

[fairyfly]

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

[MotherFunk]

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[Twinklemegan]

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.

[fortyplus]

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

[fairyfly]

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

[MotherFunk]

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[SlightlyMadShrek]

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.

[fairyfly]

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.

[Twinklemegan]

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?

[MotherFunk]

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[MotherFunk]

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