Tax credits - how the stuff do they work they out?!!

[coolma]

Could anyone give me a nice simple explanation of how tax credits are worked out? I consider myself an intelligent person, but I cannot do this! All i want to do is work out how much we will be getting when I start my new job Is this a trick question??!! Have done the 'online calculator' and everything but it makes no sense at all to me! help!!

It won't change until you've been working for a whole financial year, and then just when you think you're doing all right they'll cut it to next to nothing. I think they find it funny.
There's an online calculator somewhere... www.entitledto.net ?

Oh sorry, you've tried that. There is no way to understand tax credits I'm afraid.

nightmare isn't it?!!

Coolma, TCs are actually very simple. No, really.

If you look on www.hmrc.gov.uk/RATES/taxcredits.htm you will see a list of allowances.

1.Add up all that apply to your circumstances.

1. Deduct £6420 from your annual income.

1. Work out 39% of figure 2.

1. Deduct Figure 3 from Figure 1.

Figure 4 is your total tax credit award fro the year.

1. Divide figure 4 by 52 to get your weekly Tax Credits.