Will we have to pay back the whole years benefit

JOBEN

Hi Guys
My husband started a new job last year but was hourly paid so didnt realise that with his overtime and my wages together we would reach the £50,000 limit. Anyway in the last couple of weeks we have, obviously I'm not complaining but want to know where we stand. We get £42 every 4 weeks.

Also do you know when the new award letters come out, i havent informed them because when I checked it said unless was earning more that "25, 000 more we didnt have too!!

thanks in advvance
Jo

tattoed_bum

you should inform them of any changes at all ,i would imagine you would have noticed long before now that you have earned double ,
contact them asap so that things can be sorted as come the start of april they will be extremely busy ,and the longer you leave it the more you may have to pay back.

i'm sure that if you have to pay it back it's not a lot of money but they may let you pay it back in installments

Caroline73_2

I'm having to pay back as my OH got a bonus in the March that took us just over and I had to pay back the whole years worth. I told them I couldnt afford to pay all in one go (I'm Self employed so find it difficult to assess my earnings) and I've been allowed to pay it back in installments of £30 a month.

I thought the letters said that you had inform them of all changes.

shop-to-drop

What's the £50,000 limit? What benefit is it? If it's tax credits I thought the limit was higher than £50,000. I'm worried myself now.

tattoed_bum

£50,000 is the limit for ctc unless you have four or more children

bestpud

You should have told them about his new job as that is one of the changes they ask you to inform them of.

If you told them he had a new job and you have not earned more than £25k over your estimate for this year, then I think you will be fine as far as an overpayment goes.

If you have earned more than £25k over your estimate then you may have to repay some money (I don't know if it would be for the whole year though) but you can ask to pay it in installments.

You do need to inform them your income has increased before April. or as soon as the new tax year starts, or your new award will be based on the lower income and you may accrue an overpayment next year.

Just to add, make sure you still renew your claim next year, even if you won't receive anything due to an overpayment. There have been people who assumed they need not go through the process of supplying details etc as it was all being reclaimed, and then found they had two years of overpayments iyswim.

shop-to-drop

tattoed_bum wrote: »

£50,000 is the limit for ctc unless you have four or more children

I've just been looking into this and it looks like with three children you get £210 up to £55,000.

Anyone confirm this?

tattoed_bum

on the hmrc site it is showing £50,000 as the limit for 2008/2009 up to four children

flea72

shop-to-drop wrote: »

I've just been looking into this and it looks like with three children you get £210 up to £55,000.

Anyone confirm this?

yep £210 a year, if you have 3 kids, and earn over £55k, but under £60k

but no your right, you dont have to inform them of a change in income, as long as your income hasnt increased by over £25k. I take it your income hasnt gone up by £25k, but has increased enough to take you over the £55k limit? They may claim back. However if you havent gone over £60k, then they should be able to claim back what you were overpaid last year, from what you would have been awarded this year, so in theory it should break even, or at least not be that great an amount to find

They

Flea

shop-to-drop

flea72 wrote: »

yep £210 a year, if you have 3 kids, and earn over £55k, but under £60k

but no your right, you dont have to inform them of a change in income, as long as your income hasnt increased by over £25k. I take it your income hasnt gone up by £25k, but has increased enough to take you over the £55k limit? They may claim back. However if you havent gone over £60k, then they should be able to claim back what you were overpaid last year, from what you would have been awarded this year, so in theory it should break even, or at least not be that great an amount to find

They

Flea

Hi Flea

I am not the originator of this thread. I have sort of hijacked it accidentally as the £50000 figure panicked me. Our income is similar to last year as my husband had no bonus this year and I started part time work last year so only worked part of the year and ofcourse have worked all of this year and done some overtime too.

Husband earns £46,000

I have earned £6,500 to 20/02/09 I estimate my income for whole year will be less than £7,500 so total income £53,500

We have three children. So it looks like we may have to pay some money back this year but hopefully not all and will still get CTC which is important because we have promised the kids they can go on a summer camp which is half price if on CTC. I also want clarification because my colleague is ill and I may be required to continue to cover her shifts over the coming week or two and so only want to do this if it won't make a difference.

How does this look?

LizzieS_2

Tax credits for the current financial year (1 April 2008 - 31 March 2009) are based on income from 1 April 2007 - 31 March 2008, unless the income in 08/09 is more than 25K higher than 07/08.

If income is more than 25K higher in 08/09 than it was in 07/08, tax credits are re-assessed on 08/09 income less 25K.

What you do need to do is inform them of your estimated 08/09 earnings as the 'new year' starts on 1 April 09 - a massive increase in income could affect your award from April onwards as that one will be based on what they assume you have earned in 08/09.