Tax Credit & Working Hours

[ronnie1234]

Currently I work 16 hours. My Partner 30 hours.

In September I will be increasing to 24 hours & the odd Saturday. Do I tell tax credits in September, or at renewal next year?

Will it affect my payments?

 

[xxembobxx]

You should let them know within one month of the change in hours and increase in wage.
There is a £2500 disregard in income so if the extra hours will equal less than that your tax credits won't change
It's always best to keep them informed so you don't end up with an overpayment.

 

[ronnie1234]

Thanks. The extra hours will take me over that £2500 threshold so I guess it is going to affect my tax credits.
By time I pay nursery it might not be worth me working the extra day!

 

[xxembobxx]

By time I pay nursery it might not be worth me working the extra day!

I know that feeling! After having my boy if I wasn't made redundant I would have had to seriously weigh up the costs of childcare and travel and whether it was worth it. It's so hard for a couple to both go out to work and pay childcare and actually make any money from it. Hope you figure it out

 

[ronnie1234]

I've told them about changes / increase in hours / wages, he said it will be put into the computer & i'll be notified of changes (usually payment changes before you get letter!).

I always thought tax credits was based on previous years earnings not the current year?

 

[kristel_]

I've told them about changes / increase in hours / wages, he said it will be put into the computer & i'll be notified of changes (usually payment changes before you get letter!).

I always thought tax credits was based on previous years earnings not the current year?

They are based on the previous year's earnings unless you expect any changes to last year's, in which case they'll amend you award for this year when you phone them up.

 

[ronnie1234]

They had last years figures off my P60 so that's all up to date.

I just notified them of changes in hours / increase wages & higher childcare costs.

When I amended childcare costs a few weeks ago they increased my payment immediately, thats why I'm wondering if they will decrease it immediately now that I'm earning more

 

[kristel_]

If your income has changed by more than £5,000 either way then your payments will change now, if not then the changes won't take affect until next year.

 

[ronnie1234]

It makes a difference of £2,200 approx between now & the end of this tax year

 

[Pearls18]

I always inform of any changes ASAP just so I know they are completely up to date, tbh the system confuses me so it's the best way to ensure you don't owe loads!

 

[ronnie1234]

I did call them, it hasn't made a difference now, but makes a big difference from next April!