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@.

Search
  • FIRST POST
    • laura1812
    • By laura1812 8th Jul 17, 9:18 PM
    • 16Posts
    • 1Thanks
    laura1812
    Tax Credit / Working Tax Credit question
    • #1
    • 8th Jul 17, 9:18 PM
    Tax Credit / Working Tax Credit question 8th Jul 17 at 9:18 PM
    Hi,
    Both my husband and I work over 20-hours a week in our respective new businesses. We have an 18-month-old son and are receiving Working Tax and Child Tax Credits because of our low income. Currently, my husband takes £1,000 per month from his business and I earn an average of £350 per month from mine. I’m a sole trader and my husband is the sole shareholder and Director in a Limited Company.
    Our Tax Credit award for the 2017/18 financial year is just short of £6,000 and the money is needed month to month to keep our heads above water. However, my husband’s business is seasonal (winter) and showing promise now that industry traction has been achieved. We are confident that by early 2018 he will have built up a pot that would allow him to increase his monthly take and/or draw down a decent dividend.
    Assuming we can pull a decent dividend, it would put our earnings for the entire 2017/18 year above the threshold for receiving Tax Credit assistance. My question is what will happen at the end of this financial year once all the numbers are cooked? Will we be hit with a bill for nearly £6k to pay back all the money that we desperately need right now? If so, what is the time frame/payment plan for paying that money back? Has anyone else had experience of this?
Page 1
    • Darksparkle
    • By Darksparkle 9th Jul 17, 8:06 AM
    • 4,650 Posts
    • 2,940 Thanks
    Darksparkle
    • #2
    • 9th Jul 17, 8:06 AM
    • #2
    • 9th Jul 17, 8:06 AM
    Yes if you increase your income later in the tax year you could have an overpayment. If you have any future tax credit entitlement they will recover the overpayment that way. If you don't they'd look for direct repayment.

    http://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/
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

132Posts Today

1,436Users online

Martin's Twitter
  • I believe I can boldly go where no twitter poll has gone before https://t.co/HA0jC92gAK

  • OK I'm wilting to public pressure and there will be a star trek captain's poll at some point next week

  • I can get that. My order is 1. Picard 2. Janeway 3. Kirk. Too early to say where Lorca will end up (or would you? https://t.co/kawtCOe9RA

  • Follow Martin