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Thread: tax credits and working less hours

  1. #1

    tax credits and working less hours

    hi,

    please forgive me if the following info doesnt make complete sense but im desperate to know what to do in my circumstances.

    i have a illness which prevents me from working, my wife works 30 hours per week and we have 2 children. my wife used to work full time while also taking care of me and the 2 kids and she reduced her hours to 30 per week about a year ago, in the last couple of months my health has deteriorated, my dad comes over to my house quite often to help take care of me, but he is now in his mid 60's and i feel as though it maybe getting too much for him. the ideal thing to do would be for my wife to work less hours so she can spend more time at home but unfortunately because of bills and debt problems we have, it isnt possible for her to be earning less and for us to meet our responsibilities.

    when she first reduced her hours last year we thought we would be entitled to more tax credits, but because of the 2500 income disregard, we didnt get any extra tax credits at all.

    if she was to drop her hours from 30 to 23 per week asap then im guessing we would have the same problem as last year, i think?

    if she waited until near the end of this tax year then dropped her hours and informed the tax credits office of the change, then by the time we had our tax credits renewal dealt with, would we be entitled to extra money right away?

    i hope it all makes sense and i look forward to hearing from somebody soon

  2. #2
    Quote Originally Posted by davewhit View Post
    what you need to do is work out all the different ways she can earn money and do different hours and see what tax credits will pay you the best way is this site http://www.quickcalc.co.uk/index.htm it costs £32 BUT its free for 30 days, when we wanted to look at out childrens tax credits when the youngest wanted to go to higher education I signed up there and spent 7 days doing all the sums then cancelled with no problems they had not even taken money but others I know of, who have paid got fast refund

    its a site CAB use and many other charities even some local councils use it too

    you can sit there changing hours pay rates ect ect and get all the answers in a few seconds
    thx for the reply davewhit, so what do you think about whether we should lower my wifes hours now or near to the end of the tax year?

  3. #3
    Senior Member
    Join Date
    Jun 2011
    Posts
    387
    Vanquish - you haven't mentioned whether you are getting any DLA. If you do - couldn't your wife consider Carers Alowance?
    If you don't already receive DLA you can't claim it now - I would take advice on claiming PIP, which has replaced DLA. Take things one step at a time. Remember that in October everything changes again with the introduction of Universal Credit, so whatever your wife does with regard to her WTC it will all change anyway.
    I don't know yet what the rules of UC will be regarding hours of work. What we do know is that under a certain number of hours people will be required to look for a second job in order to get UC. So PIP Care for you and Carers Allowance for your wife might be the safest bet. I think you should get advice on that if you can. Check out online calculators by all means, but they will only provide figures based on current benefits available. The can't give projections based on UC which hasn't started yet.

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