am I being overpaid?!

missjy

I applied for WTC & CTC for the first time after having a baby 4 months go. The form asked about my & my husbands income for April 2007-April 2008. In that time I only worked for three months and earned under 3000. My husband only worked for part of the year due to ill health and earned 5000. We didnt claim any benefits and lived off our savings. So our WTC & CTC was worked out on this combined income of 8000. I am no longer working and am looking after baby. Hubby is back at work full-time and his income this year before tax should be 24500. Obviously a lot more than 8000! So will we have to pay back the money they have given us or will they just lower our payments next year? I am somewhat confused and did ring them but the boy on the phone wasn't very helpful!! Thank you x

SUPERJULES

The current years payments 2008-2009 are based on 2007-2008, and as long as your income doesn't increase by £25,000 0r more (it used to be £2,500) I don't think you're being over pad for this year.

Be aware though that if the level of income stays around the £24,500 mark the payments of ctc should drop from April 2009 (wtc will prob stop) and you should inform HMRC ASAP if they don't.

HTH:o

JOHNSTONE1

No I dont think you are getting over paid, tax credits are definitely worked out on your precious years earnings so as long as your estimated earning for next year arent too far off and they have you exact earnings for last year then everything is correct. Once you get the correct figures off you P60's in April phone in as soon as possible and give them the ammount and you shouldnt be over paid. I've had the exact same conversation with them several times as it seems i'm getting paid alot this year for what i'm earning now but have been told everything is correct and not to worry xx