ChatterBank1 min ago
How much can you earn b4 paying tax
4 Answers
Sorry my comp keeps on crashing so this is the 3rd attempt. Please excuse the brevity!!
Scenario
Woman with 3 kids - 8yrs-14yrs
Her and common law hubby no jobs and not claiming dole
Child allowance and family credit benefits to the amount of �130-150 per week.
Question : How much can she earn before benefits are effected or she has to start paying tax.
Appreciate any advice you can give. Thank you
Cross fingers it doesn't crash again and its has to be retyped yet again!!
Scenario
Woman with 3 kids - 8yrs-14yrs
Her and common law hubby no jobs and not claiming dole
Child allowance and family credit benefits to the amount of �130-150 per week.
Question : How much can she earn before benefits are effected or she has to start paying tax.
Appreciate any advice you can give. Thank you
Cross fingers it doesn't crash again and its has to be retyped yet again!!
Answers
1 to 4 of 4
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Child benefit is not means tested so it won't change however much the earnings are. Child benefit is �17.45 per week for the first child and �11.70 per week for each of the other children. So �40.85 per week is 'safe' however much is earned.
Child tax credit is calculated at �1765 per child per year plus �545 per year 'family element'. That works out at �112.30 per week. These figures apply as long as the annual income doesn't exceed �14155 (�272.21 per week).
Anyone can earn up to �5035 per year (�96.83 per week) without paying income tax. The next �2150 per year (�41.35 per week) is only taxed at 10p in the pound, so someone earning �135 per week only pays �3.82 in tax. Beyond this aggregate point (�138.18 per week), the tax man takes 22p from every pound earned.
It should be remembered though, that National Insurance also cuts in above �97 per week. For every pound earned above this figure, the tax man takes 11p in National Insurance (as well as the income tax referred to above).
Chris
Child tax credit is calculated at �1765 per child per year plus �545 per year 'family element'. That works out at �112.30 per week. These figures apply as long as the annual income doesn't exceed �14155 (�272.21 per week).
Anyone can earn up to �5035 per year (�96.83 per week) without paying income tax. The next �2150 per year (�41.35 per week) is only taxed at 10p in the pound, so someone earning �135 per week only pays �3.82 in tax. Beyond this aggregate point (�138.18 per week), the tax man takes 22p from every pound earned.
It should be remembered though, that National Insurance also cuts in above �97 per week. For every pound earned above this figure, the tax man takes 11p in National Insurance (as well as the income tax referred to above).
Chris
1 to 4 of 4
