Hello. I have a little issue I need someone to help ease my mind with.
My earned income for 2010-2011 was £0.
I started my current job in late 2011, and I was getting £50 tax credit a week until april 2012 when they told me that because of how much I earned between late 2011 and april 2012, I would now be getting only £25 a week. I never understood that.
So recently I have thought about moving but if I transfer from my current job to where I am planning on moving my pay will go from £8.40 to £6.19. That is a massive £2.21 pay cut per hour.
My question is, I am currently paying around £55 on NI and £70 on tax per month which reduces my wages from around £970 to £840ish.
If I transfer, my wages will be around £750 a month. Will I have to pay NI and Tax on that £750? And cause I am earning around £220 less per month, would my tax credits go back to £50 a month or still be at £25?
All help appreciated.
My earned income for 2010-2011 was £0.
I started my current job in late 2011, and I was getting £50 tax credit a week until april 2012 when they told me that because of how much I earned between late 2011 and april 2012, I would now be getting only £25 a week. I never understood that.
So recently I have thought about moving but if I transfer from my current job to where I am planning on moving my pay will go from £8.40 to £6.19. That is a massive £2.21 pay cut per hour.
My question is, I am currently paying around £55 on NI and £70 on tax per month which reduces my wages from around £970 to £840ish.
If I transfer, my wages will be around £750 a month. Will I have to pay NI and Tax on that £750? And cause I am earning around £220 less per month, would my tax credits go back to £50 a month or still be at £25?
All help appreciated.