Tax credits/ Working Tax Credits

yomo · Mar 28th, 2012, 10:28 AM

Hi Ladies,

I am hoping that someone is gonna make this all make sense to me! ....... 5 months ago my husband go laid off and I was on mat leave (until March 21st) I called HRMC and explained the circumstances and explained that between us this tax year we have only earnt arount £16k so they started sending me tax credits. Last week I rang them to tell them that my husband has started work 40 hours and that I have resigned from my old job, all she went on about was working tax credits... my OH is only earning £15k a year in his new job. What is confusing me is do we get tax credits as well as working tax credits?

Hope someone can help me xx

xxembobxx · Mar 30th, 2012, 07:00 AM

there are 2 types of tax credits - working tax credits (wtc) and child tax credits (ctc). You can only get wtc if you or your partner work and you don't have to have children to get it.
You can only get ctc if you have children and can be paid whether you work or not.
To be entitled to both you (or your partner) would have to be working 24 hours or more per week and earning less than £15860 pa.
After that your ctc will reduce as your income increases.
You are entitled to wtc while on maternity leave but only for 9 months. When you give your annual income for assessment you can deduct £100 for each week you received SMP. Eg if you had 9 months (39 weeks) off in the same tax year you would deduct £3900 from your income figures :-)

Mar 28th, 2012, 10:28 AM	#1
yomo Mum (Mom) Chat Happy BnB Member Join Date: Jan 2010 Location: Nottinghamshire Posts: 1,727	Tax credits/ Working Tax Credits Hi Ladies, I am hoping that someone is gonna make this all make sense to me! ....... 5 months ago my husband go laid off and I was on mat leave (until March 21st) I called HRMC and explained the circumstances and explained that between us this tax year we have only earnt arount £16k so they started sending me tax credits. Last week I rang them to tell them that my husband has started work 40 hours and that I have resigned from my old job, all she went on about was working tax credits... my OH is only earning £15k a year in his new job. What is confusing me is do we get tax credits as well as working tax credits? Hope someone can help me xx

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Mar 30th, 2012, 07:00 AM	#2
xxembobxx Mum (Mom) Chat Happy BnB Member Join Date: Jan 2010 Location: Dorset Posts: 1,734	there are 2 types of tax credits - working tax credits (wtc) and child tax credits (ctc). You can only get wtc if you or your partner work and you don't have to have children to get it. You can only get ctc if you have children and can be paid whether you work or not. To be entitled to both you (or your partner) would have to be working 24 hours or more per week and earning less than £15860 pa. After that your ctc will reduce as your income increases. You are entitled to wtc while on maternity leave but only for 9 months. When you give your annual income for assessment you can deduct £100 for each week you received SMP. Eg if you had 9 months (39 weeks) off in the same tax year you would deduct £3900 from your income figures :-)

Status: Offline

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