Tax Credits Advice Please

2

Comments

  • pbsmiles
    pbsmiles Posts: 102 Forumite
    Darksparkle wrote: »
    In answer to your question "can you advise me on the best tips when completing it"

    Do you have children or any disabilities?

    I have one child who is about to turn 18 but in full time education. How can they base the initial assessment based on a whole year ago finances when changes can happen and I can provide payslips to prove it. As my last pay is 20th March for the 2016/17 year is it worth sending that in with the claim?
  • Caz3121
    Caz3121 Posts: 15,541 Forumite
    Name Dropper First Anniversary First Post
    If you read the responses you have been given, this is how it works
    as per posts 2, 9 and 10 you will get an award based on last years and THEN you contact them to give them your details for the current tax year
    (they will then add the disregard and base the claim on £24.5k - should be about £10ish a week)
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    pbsmiles wrote: »
    I have one child who is about to turn 18 but in full time education.

    Is it non advanced education?
  • andrewmp
    andrewmp Posts: 1,754 Forumite
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    Dazed_and_confused wrote: »
    Disagree, the claim will be based on £33000.

    Op can then update income with tax credits and the revised claim will be based on current year income plus disregard.

    That's what I meant, which I suspect you knew.
  • andrewmp
    andrewmp Posts: 1,754 Forumite
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    Darksparkle wrote: »
    Correct.

    The initial claim will be based on 2015/16 as per the claim form and the OP will be required to contact HMRC once the claim has processed to report a change to 2016/17 income.

    Aye, but if he wants to work out what he'll get then the claim will ultimately be based on what he estimates he'll earn this year + £2500. If he worked out what he was entitled to based on last year's income, he might not bother claiming at all, so it's best to know how they'll ultimately work it out.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    andrewmp wrote: »
    Aye, but if he wants to work out what he'll get then the claim will ultimately be based on what he estimates he'll earn this year + £2500. If he worked out what he was entitled to based on last year's income, he might not bother claiming at all, so it's best to know how they'll ultimately work it out.

    He'll get very little for 2016/17 so he's actually best to work it out on £22,000 as that's what his claim will be based on from April 6th.
  • andrewmp
    andrewmp Posts: 1,754 Forumite
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    edited 13 March 2017 at 4:37PM
    Darksparkle wrote: »
    He'll get very little for 2016/17 so he's actually best to work it out on £22,000 as that's what his claim will be based on from April 6th.


    I see, I totally misread the first post. I took it as meaning he was earning £33k until recently, not that his 16/17 earnings had already dropped to £22k.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    andrewmp wrote: »
    £22,000 + £2500 surely?

    For 2016/17 yes but we only have a few weeks left of that.

    2017/18 will be based on £22,000 (subject to any changes to 2017/18 income).
  • andrewmp
    andrewmp Posts: 1,754 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Darksparkle wrote: »
    For 2016/17 yes but we only have a few weeks left of that.

    2017/18 will be based on £22,000 (subject to any changes to 2017/18 income).

    Had she claimed at the beginning of the tax year and (presumably) received a zero award, would she then have received more for this year seeing as the claim would already have been in place?

    If so, is everyone better off making a claim for tax credits, on the off chance you might end up qualifying due to a drop in wages?
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    andrewmp wrote: »
    Had she claimed at the beginning of the tax year and (presumably) received a zero award, would she then have received more for this year seeing as the claim would already have been in place?

    If so, is everyone better off making a claim for tax credits, on the off chance you might end up qualifying due to a drop in wages?

    If a zero award and a change in income was reported that started entitlement, payments would start (although any money due from April until the date the change was reported would be held as a potential payment until the end of the year).

    Whether you should make a claim and leave it as a zero award really depends on your personal circunstances and how likely you think it is that there will be a change. It would really be a personal choice, there's nothing to stop you from doing it.
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