New job.. wages gone up by 20pw tax credits gone down by 35pw

[BellaBoo0512]

Last month I started a new job, I'm working for the same company in a different department but they have given me a permanent contract whereas before I was working for an agency.

My weekly wage has increased by £20. I phoned tax credits last week to inform them of the changes and they have lowered my tax credit payment by £35 a week which means I'm £15 a week worse off than I was before.

How does this even make sense?

I know £15 a week doesn't sound like much but even though me and my husband work full time we still have to watch the pennies.

 

[suzib76]

The mist frustrating thing about tax credits. It always seems to penalise the worker. Your extra £20 has probably pushed you just above a threshold.

 

[BellaBoo0512]

That's so annoying! I've accepted a promotion and ended up worse off

 

[Pearls18]

Tax credits are extremely flawed, there has been very little financial benefit in me upping my hours from 21 to 37, it's so wrong. I just try to appreciate the fact that I am paying more for things myself and less reliant on the state, I know that sounds a bit crap but I'd drive myself crazy otherwise, I keep seeing each pay rise as a step closer to self sufficiency!

 

[suzib76]

Yep. Years ago when tax credits first started I had a baby and a toddler. Dh and I both worked so we were literally just above a threshold which meant we were worse off than people who had only one parent working as they were below the line so not only got more money but also free prescriptions, glasses, milk tokens etc so we really lost out by me working part time. That's going back to 2003, great to see after almost 13 years they still haven't got it right :/

 

[BellaBoo0512]

I worked part time until July and I think we were actually better off then! It's so stupid! I have friends who work part time and are better off than me. The tax credits system is a joke! No doubt when DS1 gets his 15 free nursery hours in September my tax credits will drop again. I really don't know how it all works.

Before I started working last year (was a sahm for 2 years) tax credits purposely underpaid us for a year and then gave us £900 at the end of the tax year.. It was nice to get a lump sum like that but would of helped a lot more if it was spread out over the year!

 

[Pearls18]

My son gets the 15 free hours in Jan and we'll be no better off, means there's less to pay over all but less TC proportionately so no change really.

 

[BellaBoo0512]

I don't have a clue how the 15 free hours are worked out. I just know that DS1 will get them from September. It will still leave me with 32.5 hours to pay for though.. will I still get help with that or will my tax credits stop all together?

It's all so confusing! x

 

[Pearls18]

You should still get help with all the other hours you pay, it should just mean your childcare bill is lower overall (but it means there's less to claim for if that makes sense) so hopefully you shouldn't be worse off, you just won't notice much difference.

 

[BellaBoo0512]

Ok thanks
I don't have a clue when it comes to things like this!

 

[Abz1982]

I used to work with a guy who used to refuse pay rises for exactly this reason! He eventually left once his kids were at school and he got a job that paid close to 15k more than he was on. If it was me, I would go back and ask for your pay to go back to what it was, and to raise in september? That might balance it out.

 

[BellaBoo0512]

I don't think asking for a pay decrease would work because I was working for an agency when I was on a lower amount and then the company took me on permanently and the new job is more money.

To make matters worse, there is a lot of overtime at hubby's work and they don't like it when he turns it down.. They said that it's part of everyone's contract to do overtime as the business requires so that's going to put our income up even higher and hubby keeps the overtime whenever he works it.

I think they should just give free nursery places to children who's parents work and then scrap tax credits.. would make things a lot easier!

 

[Lisa40]

I think that about the nursery places Bella. My sister gets about 800 in tax credits, and housing benefit & works 17 hours per week. If they just provided childcare at 5-600 a month there's no reason she couldn't work full time instead.

I'm not sure what hourly rate you are on but the minimum wage goes up in April so will that help at all?
x

 

[BellaBoo0512]

I'm on 7.65 an hour so I'm not sure if it will go up or not. Me and hubby are going to start ttc for number 2 soon and I'm considering dropping my hours after maternity leave if work will let me. It makes more sense which is silly really!