Any know about Income Tax?
 

We're considering moving back to the UK - with two pre-school kids. My wife will be looking after the kids at home (i.e. she won't be doing paid work). Our household income would be my £40k salary - we're trying to work out what that will look like after tax. I've read the online stuff from inland revenue and it's not overly helpful.
Can someone give me a brief idea of what way the tax credits etc work now, or know of a good online guide?
I've a couple of questions:
1. Am I right in thinking that we get qualify for childrens Tax Credits?
2. Since my wife won't be in paid work, and not using her £6475 Income Tax Allowance - can she transfer it to me, or is tax completely individualised?

Re: Any know about Income Tax?
 

Hello, this gives quite a lot of info on tax credits, there is a calculator somewhere on there aswell. If you haven't earned anything in the last tax year then you will get full entitlement to begin with, which my husband and I have found quite handy with start up costs of moving back. http://www.direct.gov.uk/en/MoneyTax...TaxCredit_Info

Re: Any know about Income Tax?
 

I don't know anything about tax credits, but no your wife cannot transfer her tax allowance to you, it is literally a personal allowance.

Re: Any know about Income Tax?
 

If it has not changed too much in the last three years you will get about £11 a week tax credits and about £110 a month child benefit. (thats what we use to get when our situation was the same as yours).

Re: Any know about Income Tax?
 

It must have changed because the tax credits are worked out individually based on your salary and how much tax you have paid the previous year, and its a little bit more than 11 quid a week! Also, child benefit is 20 pound a week for your eldest child, so it must have come down!