taxs credits query

newyorknewyork33

Hi

you do keep your £25k threshold, you just dont get a new one for your new income

e.g if your last years income was £10,000 then you are allowed to earn £35,000 before you need to either tell the tax credit office or receive any overpayments, its always best to tell them thought as it will allow your provisional payments for the next tax year to be adjusted to take into account your new income. So say you call and tell them your think you might earn £15,000 they will update this on the system as your current years income (not previous year which is what your payments are based on) you still keep your £35,000 threshold so if you end up earning £20,000 you wont be overpaid. What doesnt happen is when you report the higher income the £25,000 isnt then added to your new income giving a new threshold.

People mainly get confused when they lower there income so say last year again you earned £10,000 and call to say you think it might only be £5,000 so your payments go up then end up earning £10,000 you would be overpaid the amount they increased your payments by.

Hope this helps it is a very difficult thing to explain which is why there are always different opinons, sometimes even with the staff.

If you check your new award notice it should still show the same income thresholds.