Is This Right??

vodkaqueen75

Hi, I would like to double check something, hopefully someone may have been in this situation.

I started work yesterday doing 16 hours a week earning roughly 80 a week, we get child tax credits as husband works of 110.00 a week (we have 3 children) plus working tax of 21.00 a week, well i called them yesterday to tell tax credits about the change of earnings, husband gets approx 13k a year and i will be getting just over 4k a year, well i gave the lady all my info and then asked what our new award will be and she said our money wont change, we will still be getting the same.... i thought it would go down??
now im worried that next year they will say they have overpaid us and we'll end up with nothing.

can anyone shed some light as to why it doesnt change please.

many thanks in advance xx

Scarlett1

I think I read somewhere on here that since April your wages are allowed to go up to a certain amount until it effects your WTC

bigbill

Hi

Leave your exisitng award until after April 2007 as you are allowed an extra £25,000 in earnings and still not be overpaid.

However if you phone and tell them and they re-calculate it based on your new income figures for this year (06 / 07) you lose the extra (£25,000) you are allowed to earn over the previous estimated or last years earnings, so be warned.

cheghead

This years award is based on 05/06 salary. So next year will be based on 06/07 and will then go down. As stated if you earn less than £25k extra this year your current tax credit wont change until next year. Get out and get another job now maybe?

Fleago

It's £2,500 variance, not £25,000 Taken from the HMCR website:

"If your income in the current tax year rises by less than £2,500, it will not affect your award and we will still base it on your income for the previous year. So for the current year, you will get the benefit of a rise in income up to that amount without it reducing your tax credit award. The increased level of income is not taken into account until the next year."

Fleago

CIS

they haven't updated teh website yet, its deffinetly £25K threshold this yr as opposed to £2500 last yr, its to cut down on overpayments.

They've updated their rates pages and technical manual with the higher income disregard, but seem to have forgot about some pages.
http://www.hmrc.gov.uk/rates/taxcredits.htm

An explanation of how the threshold works is found here
http://www.hmrc.gov.uk/manuals/tctmanual/tctm07042.htm


If you ring them up in yr and inform them of your income then you still benefty from the £25K threshold, you dont lose the use of it. Whther you tell them of your income now or at the end of the yr, if 06/07 income is no more than £25K higher than 05/06 icnome, your awad wil stay exactly the same.

Fleago

Thanks, CIS, for that clarification. I wasn't aware of this change and, as they say, you learn something new every day

Ta!

Fleago

CIS

Not many people are, its an exercise in reducing overpayments and they can then claim they've reduced overpayments and paid out more money, without actually paying anything more out in the long term.