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Ex Gratia Payment & CT Credits
rchddap1
Posts: 5,926 Forumite
Just received an ex gratia payment from my ex works. I left them a while back and they've finally sent me an ex gratia payment for outstanding bits and peices. I'm not working and am wondering what to do in terms of tax credits. I'm not employed, so i doesn't come there. Where / how do I list this payment.
It is income afterall.
It is income afterall.
Baby Year 1: Oh dear...on the move
Lily contracted Strep B Meningitis Dec 2006 :eek: Now seemingly a normal little monster. :beer:
Love to my two angels that I will never forget.
Lily contracted Strep B Meningitis Dec 2006 :eek: Now seemingly a normal little monster. :beer:
Love to my two angels that I will never forget.
0
Comments
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You need to declare it in the usual way.
Bozo0 -
You should still call up to add this as part of your current year estimated income then declare it on next year's annual renewal.0
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We have increased our income this year once already. Will this mean they want some back?Baby Year 1: Oh dear...on the move
Lily contracted Strep B Meningitis Dec 2006 :eek: Now seemingly a normal little monster. :beer:
Love to my two angels that I will never forget.0 -
Are your earnings more this year than they were last year?
Or are they lower meaning you have a bit higher tax credit award?
If you have previously given a lower estimate - meaning a slightly higher award, then you may have a slight overpayment but it would automatically be deducted from your future payments.
If you have not lowered your estimate you are totally ok as long as the total increase in income doesnt exceed £25,000.
eg
2007/08 earnings - £15,000
means that you could earn up to £40,000 in 2008/09 without overpayment worries.0 -
When I put this ex gratia payment on the tax credit system we will have earnt more than the estimate they have.
I have not lowered our estimate this year. The increase is less than 25k. Eg.....from 20k to 23k at the begining of the year when income was calculated This is mainly from OH, as I'm a stay at home mum. So my earnings will go up from 0 to the amount of the ex gratia payment.
I am getting a touch confused though. A friend of the family told me that an ex gratia payment is like a gift so does not qualify under tax credit rules.Baby Year 1: Oh dear...on the move
Lily contracted Strep B Meningitis Dec 2006 :eek: Now seemingly a normal little monster. :beer:
Love to my two angels that I will never forget.0 -
A "gift" would be a payment that was given without anything in return.
As the payment was for "bits & pieces" you would have been paid for, you should declare it to TCO.
This shouldnt cause an overpayment as you can earn up to £25k more than what you did last year. However you should still call up to declare it as the figures will be used to calculate your award from 6th April 2009.0
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