sick pay & tax credits?

rabialiones

friend of mine has been off work for over 6 months, now gone down to half pay, will he be elegible to receive an increase in tax credits for this shortfall, he has 2 kids.?

CIS

If his income has decreased, he may may get more tax credits, depending on his income, he needs to estimate what his complete yrs income will be and ring the TCO and tell them. They can then re-assess his claim.

fatblokexl

good idea to est yearly income as CIS states, but also before updating helpline, check the award notice for the limits in income to see whether you/he needs to tell them

skint-78

Last year I was off sick for 5 months and went from full pay to half pay and statutory sick (within a few weeks), to just statutory sick pay and no wage (for about 3 months). At all these times my tax credits kept coming, but weren't altered due to my huge decrease in income.
Now I am letting tax credits know that I earned less than my estimated income (don't know if I will get any more money back), so in retrospect I would estimate an income based on how long they forsee being off sick on certain pay to see if it makes a difference now. Lets face it it will be now that is most important.
I would just worry a bit about dreaded overpayments if the estimate was wrong!