From: "Martin Davies" 
Newsgroups: uk.gov.social-security uk.finance
Subject: Re: better off with wage rise?
Date: Sun, 16 Apr 2006 21:00:14 GMT

JethroUK© wrote:
> "Martin Davies"  wrote in message
> news:Xnn0g.103850$zI1.25523@fe2.news.blueyonder.co.uk...
>>
>> "Caversham"  wrote in message
>> news:1145137020.064230.79670@g10g2000cwb.googlegroups.com...
>>> A married man with 1 child earns 420 pounds a week and gets tax
>>> credit. If he increased his earnings to 520 pounds a week would he
>>> be better off, or would corresponding loss of tax credit mean he
>>> was working for nothing or nearly nothing?
>>>
>>
>> Income wise, he would be better off. Additional tax and NI to pay,
>> but any reduction in tax credits ...
>
> you forgot to mention him refunding credits for the whole of the tax
> year which can conformatably wipe out any benefit in wage increase he
> will get (and some) - unless he doesn't declare the increase until
> after April


Why would he refund credits for the whole of the tax year?
His income for the year in total would be a certain amount. Thats what an 
award can be made on based on his estimate - then adjusted after year end 
figures are known.
Gosh - just like we do now.




Martin  <><