If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
Wages, Taxes and Tax Credits questions.
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Hey guys, Hope you all can help,
Basically my job has changed somewhat and my Salary now has gone from 14250 a year to £17890 and I've gone from 40hours a week to 50hours a week.
Basically I have a few questions, Firstly when I work it out on a Tax Calculator I am paying a higher % in tax, should this be correct? I assume it is still the lower band of tax at 20% I just assumed the % of tax in relation to what I am earning is higher as I am earning more over the tax free allowance. Basically my hourly rate (after I take into account tax) from the tax calculator says I earn 15p less an hour on average than what I was before,
Basically if I did 40hours a week I get £5.75 PH AFTER tax if I do 50hours a week I get £5.60 PH AFTER tax
so whilst it is more money (as I am working longer) it is a lower average salary
Secondly, I thought tax credits cut off at around £17500/18000 as when I did an online tax credit calculator to see how much I would lose I was shocked to find that both working tax credit and child tax credit combined would drop from £130.00 per week to around £104.00 per week, a smaller drop than I expected and this was with the HMRC's online tax credit calculator, does anyone know (as I will end up doing overtime on top of this) when the cut off is or when it is severly cut off.
I am trying to find the limit as to when Working/earning more means I lose more (basically I want to know if I will lose more in tax credits than what I will earn) so I can prepare for this.
Thanks y'all
Basically my job has changed somewhat and my Salary now has gone from 14250 a year to £17890 and I've gone from 40hours a week to 50hours a week.
Basically I have a few questions, Firstly when I work it out on a Tax Calculator I am paying a higher % in tax, should this be correct? I assume it is still the lower band of tax at 20% I just assumed the % of tax in relation to what I am earning is higher as I am earning more over the tax free allowance. Basically my hourly rate (after I take into account tax) from the tax calculator says I earn 15p less an hour on average than what I was before,
Basically if I did 40hours a week I get £5.75 PH AFTER tax if I do 50hours a week I get £5.60 PH AFTER tax
so whilst it is more money (as I am working longer) it is a lower average salary
Secondly, I thought tax credits cut off at around £17500/18000 as when I did an online tax credit calculator to see how much I would lose I was shocked to find that both working tax credit and child tax credit combined would drop from £130.00 per week to around £104.00 per week, a smaller drop than I expected and this was with the HMRC's online tax credit calculator, does anyone know (as I will end up doing overtime on top of this) when the cut off is or when it is severly cut off.
I am trying to find the limit as to when Working/earning more means I lose more (basically I want to know if I will lose more in tax credits than what I will earn) so I can prepare for this.
Thanks y'all
0
Comments
40% tax kicks in at around £35k. The tax allowance for this year is £7475.
Excellent website, bung your details in there and see what it churns out.
And for how much tax you'll pay: http://listentotaxman.com/
We still get tax credits and my partner is on a lot more than that, although that might be because of disability element, im not sure.
As I say, you're best off sticking your details in Entitled To or speaking to a specialist benefits adviser who can do a "better off" calculation for you. I have a benefits calculator at work but mine's only valid for England and Wales.
You get more if you / qualifying child has a disability and the cut off is higher.
Both excellent sites :thumb: