Does anyone know how many hours i'm allowed to work before it effects it? its a part time job with average of 16 hours. i've been told its up to 16 hors but also that if i work i lose all family tax as my partner also works but brings home low income.
2007-01-05 01:30:33 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
It depends how much you and your partner will earn, if you look upon your award notice it will be stated the income you and you partner are entilted to earn within the current tax year (ending on 05 April) before your credits are effected. It is most likely that HMRC will allow you and your partner to earn an extra £25k on what was stated on your annual review and declaration before having your credits reduced. E.g is youir partner declared in April he earnt £11k last year you and your partner will be entilted to earn £36k together.
But for future reference; There are several cicumstances that will effect the amount you recieve.
There are two elements Working Tax Credit and Child Tax Credit.
To claim Working Tax Credit you and your partner combimed must work combined 30 hours per a week and have a joint household income of less than £15000.00 (£21000.00 if one of you is working and has a disability)
Child Tax Credit is not effect by the amount of hours you work but the income anyone with a child can claim this credit. When tax credits are worked out the more you earn the more that is deducted from your entiltement firstly the WTC is reduced and then the CTC is reduced. So if you and your partner earn less than £15k your CTC will not change but once over £15k your CTC will be reduced in proportion to your income increase.
But for a detailed guidence you would be best talking to an advisor as they will be able to see you claim and all it's elements and be able to advise you what will happen in these circumstances. So call 0845 300 3900
And when you start working contact Tax Credit helpline a.s.a.p as you may be penalised for late notification of change in circumstances, obtain a predicted current year income from your employer (if not hourly rate and the helpline will work it out for you) as well as a P.A.Y.E ref: and there full address
P.S The department as a whole is called Tax Credits not Working Families Tax Credits and is then sub-grouped Working Tax Credit and Child Tax Credit
2007-01-05 07:04:22 · answer #1 · answered by Lora 2 · 1⤊ 0⤋
Dont forget it's called WORKING families tax credit!! You may only loose if your income significantly goes up. You can claim more if you work more than 16 hours! The idea is that you are earning money to support your family. You are either not working, working less than 16 hours or working more than 16 hours. Part/or full time.
Now part of the tax credits is for your hours/earnings and there is a large change in payments when you get to around £26,000 total income. There are also some thresholds at £14,000, free school meals being one.
But it all depends on any childcare costs too. As this is part of the deal.
Have a look at this self calculator system, although it is not 100% accurate it gives an idea.
http://www.bfinancialtools.co.uk/working-family-tax-credit-calculator.php
2007-01-05 09:41:36 · answer #2 · answered by My name's MUD 5 · 0⤊ 0⤋
if you work 16 hours plus you could claim working tax credit, it depends on your situation, what you earn as a family and how many children you have etc, you could claim in on your partners wages, contact them and they will explain in more detail. From past experience its things like rent and council tax you will have to pay if you get a discount.
2007-01-05 09:43:54 · answer #3 · answered by Jazz Mc 4 · 0⤊ 0⤋
working over 16 hours will stop your tax credit but anyting less than that will still affect the amount of money you get. you need to let them know how much you get paid and how many hours you do. if you do not tell them, they will prosecute you for froughd.
they will find out quickly if you pay tax on the job.
2007-01-05 09:37:55 · answer #4 · answered by Robfev 2 · 0⤊ 0⤋
you should ring the the tax credit help line with the details of yours and your partners income, remember they base it on a years salary so have your partners P60 handy and in your case just add up your weekly wage and multiply it by 52, tell them how many children you have and they will tell you every thing you are entitled to
2007-01-05 09:49:10 · answer #5 · answered by angie 5 · 0⤊ 0⤋
You may loose Family tax Credit, but you should be able to claim working family tax credit. you can earn quiet a good joint salary and still be eligible
2007-01-05 09:41:08 · answer #6 · answered by Corneilius 7 · 1⤊ 0⤋
http://www.taxcredits.inlandrevenue.gov.uk/Qualify/WhatAreTaxCredits.aspx
2007-01-05 09:41:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋