Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • Batman 100
    • By Batman 100 4th Oct 16, 5:54 PM
    • 151Posts
    • 52Thanks
    Batman 100
    Confused by tax credits
    • #1
    • 4th Oct 16, 5:54 PM
    Confused by tax credits 4th Oct 16 at 5:54 PM

    I started a new job 5 weeks ago and got my first tax credits payment today. It was vastly over what I was expecting, so I've just been on the phone to the tax credits helpline and I was amazed by what the guy in the call centre told me.

    Basically, I earn 225 per week before tax (7.50ph x 30hr per week), I'm single, have no children and am not disabled. Before I submitted my claim I entered my details in to an online benefits calculator and was told I'd be eligible for 11.39 a week in working tax credits.

    But instead of receiving 56.95 for my first 5 weeks payments I received 161.64. I called the HMRC helpline and the guy on the phone said this is right because the online calculator assumes I'd be claiming for the whole of the 2016/17 tax year and not just part of it. He said my award is for the total year and will be paid over the remainder of it in weekly installments.

    This took me by surprise as I couldn't understand why the government would be paying me tax credits for a period of time (April 6th until when I started my current job) when I wasn't eligible for them. For part of that time I was working in a higher paid job and part of that time I was claiming JSA.

    I've never claimed tax credits before and I'm not 100% sure how this very confusing system works. I don't want to end up in a situation where I get a demand for repayments at the end of that tax year.

    I was wondering if anyone could make sure I've got this right and put my mind at rest.

Page 2
    • Batman 100
    • By Batman 100 9th Oct 16, 10:20 PM
    • 151 Posts
    • 52 Thanks
    Batman 100
    I would provide an estimate based on working until the end of the year. You are always best to overestimate to avoid overpayments.

    And yes you would need to include the pay rise as it falls in this tax year.
    Originally posted by Darksparkle
    Thank you. I've recalculated my estimated total earnings for this year, updated my online tax profile, now I've just got to wait for HMRC to get back to me.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

554Posts Today

5,037Users online

Martin's Twitter
  • Morning. On way to @gmb for my 7:40 Deals of the Week; incl clock change warning, free £200, Brit Gas £200 off, railcard code, eurostar sale

  • RT @Magwa61: @MartinSLewis thank you Sorry I thought it was you, conning sids ????????????????????????????????????

  • No. It's NEVER the right way to switch energy. Please don't confused these 'moneyexpert' sales reps with my site mo?

  • Follow Martin