This cant be right?!

talulah25

I am currently 30wks pregnant with my first child and due to finish work on 29th April, when assessing our finances I went onto entitledto.com and as myself and my partners earnings for tax year 07/08 were a combined £11k (partner was at uni and still hasnt managed to find FT employment) it showed that we were entitled to tax credits cant remember the exact amount but was about £20/wk.

So...I called the tax credits helpline and was asked for 07/08 earnings, advisor then asked how may hrs a week i work (37.5) and how many my partner works (10), she said that as my job and salary had changed since prev tax yr (estimated earnings for 08/09 £18k) that this would be taken into account and we are not entitled to any tax credits.

I do not understand this, at the start of the call she told me that it would be calculated on 07/08 and the threshold was £17.7k, we are well below this!

Please can someone explain this???!!!!

bestpud

I am guessing it is because we are very near the start of a new tax year, so come April, you would be assessed on 08/09 income which is indeed too high for you to claim wtc as a couple.

However, once the baby is born, you will receive tax credits, of probably a little more than £20 a week.

It will initially be based on your 08/09 income and I would urge you to leave it as that because, that way, if you return to work and/or your OH finds full time work, your award will not change (unless you have a massive rise in income) until April 2010 as there is a £25k income disregard.

If you call them and say your income is now lower, they will base your award on the lower figure and increase your payments, but the income disregard will no longer apply, and if your income rises over the next year you may accrue an overpayment.

You could avoid the overpayment by calling them immediately if you start earning more and they will reduce your award accordingly however.

partysis81

Firstly congrats on being 30 weeks!!! I myself am 30 weeks this week too!!!

Im looking into the whole tax credits thing and its driving me nuts!!

I think the woman must have been on about working tax credits as the threashold for child tax credit is a lot higher than £18k.

Also, ive tried entitledto.com quite a few times, and dont seem to get an accurate result.

Im sure there will be someone on here who knows more about tax credits who can tell you for sure.

talulah25

thanks for the advice BP, and congrats partysis