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  • FIRST POST
    • supermonkey
    • By supermonkey 16th Mar 17, 4:42 PM
    • 730Posts
    • 116Thanks
    supermonkey
    Tax Credits - Income Decrease After 0 Award
    • #1
    • 16th Mar 17, 4:42 PM
    Tax Credits - Income Decrease After 0 Award 16th Mar 17 at 4:42 PM
    Hi All,

    I'm now trying to figure out what happens if my income rises, resulting in no longer qualifying, then the income going down the next year.

    So when the income drops significantly following a 0 award year, I think it would follow this:
    -If previous year exceeds current year by more than 2500 (income disregard), award is based on current year plus 2500.

    Thanks
Page 1
    • Darksparkle
    • By Darksparkle 16th Mar 17, 6:36 PM
    • 4,656 Posts
    • 2,941 Thanks
    Darksparkle
    • #2
    • 16th Mar 17, 6:36 PM
    • #2
    • 16th Mar 17, 6:36 PM
    Tax credits is based on the previous year's income unless the current year income increases/decreases by 2500.

    E.g.

    1. 2015/16 10,000 2016/17 12,000. Tax credits based on 10,000

    2. 2015/16 10,000 2016/17 20,000. Tax credits based on 17,500

    3. 2015/16 10,000 2016/17 5,000. Tax credits based on 7,500.
    • supermonkey
    • By supermonkey 16th Mar 17, 8:23 PM
    • 730 Posts
    • 116 Thanks
    supermonkey
    • #3
    • 16th Mar 17, 8:23 PM
    • #3
    • 16th Mar 17, 8:23 PM
    Thanks, thats what I mean but with extreme fluctuations of income:

    2015/16 20,000 2016/17 40,000 income based on 40,000 so no award for that year.

    2016/17 40,000 2017/18 15,000 income based on 17,500
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