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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4332
Experience:  FCCA FCMA CGMA ACIS
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Im currently working 14 hours per week £4697.00 per annum but

Customer Question

Im currently working 14 hours per week £4697.00 per annum but have applied for another job which is only 5 hours per wk £1420 - £1545 per annum. How much Child Tax Credit would I receive?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Tax credits tend to be as long as the proverbial piece of string. However, the general consensus is that it would be, in GBP, 3300 for one child, 6050 for two or 8805 for three. You also get more if any children are disabled. That is the data from Which.
However, the HMRC web site says that this may be restricted if your income begins to exceed GBP 6420 per annum. You would, on maximum, possibly be on 6242 so your benefit should not be reduced by virtue of a higher income.
Tax Credits are claimed and awarded using an estimate of your annual income and then finalised at the year end to give the actual award. The result of this system can be a bewildering series of changes to your benefit with under and over payments commonplace. It's just a case of keeping one's eye on the ball and notifying the Tax Credit Office immediately of any income level changes. This last responsibility I cannot emphasise strongly enough.
I do hope I have been able to shine some light on your question.
Customer: replied 3 years ago.

Would I be better off if I got the job at interview on 1st Sep or would you advise not to attend the interview?

Expert:  bigduckontax replied 3 years ago.
I am sorry, my answer assumed that you would do both jobs. i had not realised that you intended changing down. Your child tax credits would remain the same. In either case you would be below the limit for Working Tax Credit unless you did both jobs and then only were you 60, or over, years of age.
Customer: replied 3 years ago.

I know I wouldn't qualify for Working Tax Credits but wouldn't my current Tax Credit rise with me dropping hours? My current employer does not except any employee taking on two jobs. I'm looking at changing my hours because of on going circumstances

Expert:  bigduckontax replied 3 years ago.
According to Which it is a no change situation for any income below GBP 15,000 per annum. It remains static irrespective of income below that 15K level.
Customer: replied 3 years ago.

So my weekly payments of 57.21 wont increase but my go down?

Expert:  bigduckontax replied 3 years ago.
They will not increase and would only go down if your income exceeded 15K per annum. On the figures you have given this would appear most unlikely!
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.