Child Tax Credit & WTC - what happens when I get a job?

[lowrib]

We were awarded child tax credit and working tax credit - the CTC goes to my account and the WTC goes to DPs.

DP is self employed.

I just got a job (yippee!) and am trying to work out our finances.

What now happens to the CTC and WTC? DO they recalculate? Or am I right in thinking that as the amounts based on last year's income, and so my job will only make a difference to next year?

I'm new to this and would appreciate any advice to help me make sense of it!

TIA

Sorry, but you need to tell them straightaway. It is calculated on the assumption that you will have the same sort of income this year too. If you dont tell them now you will end up paying them a load back as you will be overpaid. You may not be able to get working tax credit if your wages are over a certain level, but I believe that things like the NHS exemption card is valid until the end of the financial year, which is the start of April.

Well done on your new job.

Thanks

I'll tell them as soon as I have a start date - but I won't know this for a few days yet.

So is it likely that both the CTC and WTC will stop then? Or will we get some of it still maybe? My partner gets the WTC not me - does that make any difference?

Does anyone know what the threasholds are?

I'm trying to work out how much better off (if at all ) we'll be when I start work.

I'm only going back to work so we can pay off debts, I'm not doing it for fun!

I think you get the min tax credit (about £40 a month) with an income up to £70k (thats what they told me once anyway - may be made up!)

lowrib there is a website called entitledto.com this will do a calculation of everything you are entitled to.

As said before, get your estimate for the 2009/2010 tax year in now, as the payment you receive from 6th April till the date you complete your renewal are based on this.

All awards are based on the previous tax years income, unless the current tax years income is lower, or more than £25k higher.

Thanks for reminding me about entitledto.com - but confusingly but says we should be getting much more WTC now than we are!

I'm getting worried that actually by taking this job we might not be any better off (The poverty trap in action!)

Sure I must be working something out wrong though. I was so excited to get the job! I wanted to work out how quickly we could pay our debts off. I thought it would cheer me up

Now I'm getting a sinking feeling, looks like it could still be a very long time indeed. Bugger.

Off to do some more maths, hopefully it will work out better this time.

Working out debts on a Saturday night - oh how things have changed!

Lowrib - how did you get on with your workings out?

I kind of went round in circles then gave up!

I start my job on next week, so I'm going to speak to the CTC / WTC people and see what they say, then have another go at working it out.

Good Luck. It should be worth it.