Tax Credits Threshold

KSG1970

Hi, can anyone tell me if the current threshold (I think it is 27K) for calculation of tax credits (based on one earner and no child care) is due to increase for 2009/10.

As far as I am aware, at the moment if you earn between 27K and (think it is 50K) everyone gets the same basic tax credits which is about £40.00/month.

I might have these figures wrong but cannot find anywhere on the tax credits page that informs you.

I telephoned tax credits to say our income was going to be reduced from 06/04/08 to try and get our tax credits correct for April but they said they can't take the information until 06/04 08 ?

sinstar

If your income is going to go down ON April 06-04-2009, ie. there is no change that is affecting your 08-09 income, then what the advisor told you is right. From April onwards your tax credits will be based on your 08-09 actual income, unless you expect your 09-10 income to be lower - in which case you would advise them of this during the renewal period (ie. on or after 6th April).

Here is a link to current rates and thresholds for tax credits, and it also shows how they will change in the 09-10 tax year -

http://www.hmrc.gov.uk/rates/taxcredits.htm