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Is this really true ?


AlanHo
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I got chatting to a single parent at a new year party who told me that she was a part time civil servant and was due to get a salary increase this coming February. The increase was enough to take her out of getting tax credits - but would be enough for her to still earn the same amount per week.

Alternatively - she could take the salary increase and work one day less per week - thus retaining her tax credits and current average earnings.

If this is true - there must be thousands of people in a similar position who can deliberately work less hours and still get the same money by getting tax credits they would not receive if they carried on working their "normal" hours.

I don't pretend to understand it - but it seems to be a very screwy system to me and an unecessary burden on the taxpayer.

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The whole system of Tax and other government Credits and allowances is riddled with rules of this type of rigid break levels for calculations of Credits or allowances.

What is really required is some sort of sliding adjustments to the cutoff points to encourage people to do as much as the can without being worse off and they more they help themselves the more they can gain.

At present there are lots of cases like this in that you can be worse off if you help yourself too much by extra work or savings.

There Must be a Better way of doing it.

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A guy I know, who is passionate about hardware - he loves building PCs. He makes 'em for the local school, and shows kids how to do it too.

Yet he cannot work as much as he would like, coz too much earnings will prevent him from being entitled to an allowance to look after his disabled wife..!!

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A guy I know, who is passionate about hardware - he loves building PCs. He makes 'em for the local school, and shows kids how to do it too.

Yet he cannot work as much as he would like, coz too much earnings will prevent him from being entitled to an allowance to look after his disabled wife..!!

Thats the sort of Stupid restrictions that cause higher costs to the Taxpayer than necessary. The same thing happens in the pensions area.

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I got chatting to a single parent at a new year party who told me that she was a part time civil servant and was due to get a salary increase this coming February. The increase was enough to take her out of getting tax credits - but would be enough for her to still earn the same amount per week.

Alternatively - she could take the salary increase and work one day less per week - thus retaining her tax credits and current average earnings.

If this is true - there must be thousands of people in a similar position who can deliberately work less hours and still get the same money by getting tax credits they would not receive if they carried on working their "normal" hours.

I don't pretend to understand it - but it seems to be a very screwy system to me and an unecessary burden on the taxpayer.

Surely this should come under the same "gerrymandering" law that caused the Tesco woman (forgotten her name, dammit) to flee the country for selling off houses to gain votes.

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I remember not long after my mate took redundancy and went into a lower paid job to keep him working he started receiving housing benefit, this new job meant he had to do overtime every 3rd Saturday, extra money to help with bills etc. you would think, but no! the way the benefit system worked it cost him 50p every extra hours overtime he worked.

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What I would like to know is, how come your friend is getting a pay rise in Feb!! If we get one then it is July that it is supposed to be awarded but we are usually lucky if we get it by Christmas by the time the unions and the governement have finished arguing over it.

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What I would like to know is, how come your friend is getting a pay rise in Feb!!

Dunno - just repeating what I recall. She was not a friend by the way - just a casual acquaintance at a party who talked in some detail about her situation. I have always had an unfortunate way with women - they cannot resist opening their hearts to me. Mind you - I had had a few glasses of champagne so could have got dates wrong.

This does not alter the principle though - she is going to be able to work even less for the same money because of a crazy government sponsored system.

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