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hedgefunded

Question About Tax Credits

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Hi all.

I've discovered that my family are eligible for both child tax credits and working tax credits.

Although we have a lot of savings, apparently only the income from savings interest matters, not the actual amount of savings.

I dabble away with websites and Mrs Hedge sells Usborne books. We are both self employed. (Self employed people are eligible, I checked)

My income will be a modest £6k and Mrs Hedge will earn £4k

Small sums, but we don't need to earn a lot. (The pizza business on my other thread might change this...)

We have our 15 year old son living with us.

The relevant government department lady told me that with those figures we'd be entitled to abour £48/week WTC and £53/week CTC. Around £5k/year.

A quick bit of maths suggests that the combined WTC and CTC quoted brings us up to the £15,010 limit at which a family is eligible.

My questions:

1 - I told the lady we both work about 20 hours per week, which is a reasonable guess. How does the amount of hours worked affect the payments? Is it 'better' to work more hours/less hours? or is it irrelevant as long as you work a certain amount?

2 - Or...do the hours make any difference at all? If we both earned just £2k each, would the WTC and CTC be £11k per year and therefore still bring us up to £15,010?

I'm sure you can work out where this is going. Is there a sweet spot for most money/minimum work? Or if not, what's the point of working more than just a little bit?

I'm no scrounger, I've paid thousands upon thousands in income tax over 25 years in full time employment, so I'm damned if I'm not going to claim every penny I can now that I've been made redundant.

Thanks for all/any advice.

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You have to work at least 16 hours a week to get any money.

If you work more than 39 hours a week you get a premium payment of about £11 a week.

Not sure the most profitable senario except have hundreds of kids.

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..and the following year, be sure to tell them if your estimated annual income actually turned out to be higher than you had :rolleyes: anticipated. You'll have to repay some, in the form of reduced credits for year 2, but at least you won't be fined or end up with a black flag on your file.

;)

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I claim Child Tax Credit - and I'm not working any hours or claiming - I'm guessing at some point they will say I shouldn't have claimed - but then I'll switch to Income Support as I understand they claw back overpayments through that if you aren't earning..

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