taxs credits query

peediedj

Auzelia wrote: »

The disregard in tax credits for increases in income between one tax year and the next rises from £2,500 to £25,000 from April 2006.

iam aware of the income disregard bit,its the not telling but that i think will get people in trouble

Auzelia

its from the HMRC themselves so if they did send a compliance form to fill in then im sure they would take the disregard into account.

peediedj

Auzelia wrote: »

its from the HMRC themselves so if they did send a compliance form to fill in then im sure they would take the disregard into account.

-how would this work out,with regard to the disregard,i have been offered promotion,probably a extra £2500-£3200 more i,ll earn if i took it between now and april 5th,my wife would cut down on her work and probably earn £2000 less than she did on last years earnings,so our total earning would probably be £1500-£2000 more on top of last years wage(both of our for 07-08)but would we get penalised as income would of chnaged twice??

Auzelia

you wont get penalised for the amount of times you change your income.
You may only get an overpayment if the latest figure you give them is less than the P60 amount from 08/09 (new tax award)

If you didnt change the amount then you would still have the £25k disregard so the amount that you earn extra, and what your wife earns as long as it comes to less than the £25k on top of your last P60 award 07/08 then you wont get an overpayment as you have that "bumper"

peediedj

Auzelia wrote: »

You may only get an overpayment if the latest figure you give them is less than the P60 amount from 08/09 (new tax award)

If you didnt change the amount then you would still have the £25k disregard so the amount that you earn extra, and what your wife earns as long as it comes to less than the £25k on top of your last P60 award 07/08 then you wont get an overpayment as you have that "bumper"

so if i tell them with the payrise i may get my wages will go from £14500 to £18000(for arguments sake best to over estimate) and i actually earn £17200(just a guess) then i,ll be fine ,no overpayment?on top of that my wife earned £13600 last period(07-08) and she may earn £11600 if she changes hrs,so at the end of the day between us well more than likely earn £18600 ish tops about £1500 more than expected ,will we be ok,even though my incomes risen and hers has dropped in the same period? excuse me if i sound thick but its getting a litlte confusing

Auzelia

peediedj wrote: »

so if i tell them with the payrise i may get my wages will go from £14500 to £18000(for arguments sake best to over estimate) and i actually earn £17200(just a guess) then i,ll be fine ,no overpayment?on top of that my wife earned £13600 last period(07-08) and she may earn £11600 if she changes hrs,so at the end of the day between us well more than likely earn £18600 ish tops about £1500 more than expected ,will we be ok,even though my incomes risen and hers has dropped in the same period? excuse me if i sound thick but its getting a litlte confusing

Old tax year
£14500 + 13600 = £28100 joint income for Tax year 07/08

New tax year
Estimated income £18000 + 11600 = £29600 joint income for Tax year 08/09

as the difference is only £1500 then as long as you dont earn more than your estimated income that you gave to them then you wont have an overpayment, but as you gave them an estimated income you dont have the £25k disregard.

if how ever you left it at what you had for tax year 07/08, then got your end of March wage slips. Added together what you and your wife earned from April 08 - March 09 (will say on the wage slip) then add on a bit extra for the extra couple of days in April until the end of tax year date. Called them with that figure, so that your new payment for the new tax year wont be too much. Then when you get your actual P60 you can give them your new (correct) figure. But as you already gave them an estimate combined from your March wage slip the amount on your P60 shouldnt be much different to what you have already given them.

I really hope this is making sense to you.
Pregnancy brain sometimes forbids what is correct in my head from coming across the right way :rolleyes:

peediedj

Auzelia wrote: »

Old tax year
£14500 + 13600 = £28100 joint income for Tax year 07/08

New tax year
Estimated income £18000 + 11600 = £29600 joint income for Tax year 08/09

as the difference is only £1500 then as long as you dont earn more than your estimated income that you gave to them then you wont have an overpayment, but as you gave them an estimated income you dont have the £25k disregard.

if how ever you left it at what you had for tax year 07/08, then got your end of March wage slips. Added together what you and your wife earned from April 08 - March 09 (will say on the wage slip) then add on a bit extra for the extra couple of days in April until the end of tax year date. Called them with that figure, so that your new payment for the new tax year wont be too much. Then when you get your actual P60 you can give them your new (correct) figure. But as you already gave them an estimate combined from your March wage slip the amount on your P60 shouldnt be much different to what you have already given them.

I really hope this is making sense to you.
Pregnancy brain sometimes forbids what is correct in my head from coming across the right way :rolleyes:

makes sense,what your saying,havent given them any figures as havent taken the job yet,but as you say is best to leave it until march,even estimate as you say a bit more and i,ll be fine,thanks for all your help:T

moo842

so was i wrong to tell them?? what if with overtime he earns £4500 more instead of £4000 will we then have an overpayment...so i'm peanalised for telling them?

moo842

should i phone them and tell them i got it wrong and over estimate??

peediedj

Auzelia wrote: »

you wont get penalised for the amount of times you change your income.
You may only get an overpayment if the latest figure you give them is less than the P60 amount from 08/09 (new tax award)

If you didnt change the amount then you would still have the £25k disregard so the amount that you earn extra, and what your wife earns as long as it comes to less than the £25k on top of your last P60 award 07/08 then you wont get an overpayment as you have that "bumper"

i was told by a tc advisor you can only make 2 changes on there computer per year,what about a fine? read on tc forms if you dont tell them about a change you can be fined,so surely they could pull this one if they found out you had used the disregard?