Working tax credit advice needed

moneymabel

Hi all, am trying to work out the rules and regulations of WTC and am a bit stuck so hoping someone on here can help?

Currently I am working part-time and am self employed part time. I have been signed off sick for the last 3 months so am going to hand my notice in and do my self employment full time instead.

I have been told I might qualify for WTC-I won't this year as if I am right it goes on your previous years earnings so with mine and OH's will be over the qualifying limit. So I am thinking trying to survive this year and then applying in April 2011. Am I correct in that if i do this the WTC will go on what we have earned this year eg Apr 2010-Apr 2011?

What happens if we get WTC throughout 2011 but our earnings increase in that year-does it just stop the following year or will we have to pay it back?

Thanks for any help at all-I think i have read so many different threads and pdf's about this I have confused myself!!

geoff11

i belive it is based on your last years earnings i think thats what they did when my daughter applied for wtc, any changes during the payment of this you inform them and they make the adjustments accordingly. i base my comments on my daughter getting wtc. thelink below may help.

geoff11

http://www.adviceguide.org.uk/index/life/benefits/benefits_and_tax_credits_for_people_in_work.htm#your_income_and_working_tax_credits

bestpud

Yes, if you apply in April, they will use this years actual income to assess your award.

If you then earn more than that, it won't affect your claim until April 2011 unless the rise in income is over 25k.

I'm fairly sure that still applies if the rise in income would take you over the threshold for claiming but hopefully someone else can confirm that....

moneymabel

Thanks- we are quite close to the threshold anyway so that is what worries me, if I get tax credits throughout 2011 but then earn enough to take us over the limit in the same year will I have to pay it back or will the tax credits just stop in 2012?
Sorry for all the questions and thanks for your help so far both of you.

bestpud

There is at least a couple of tax credit experts on here so hopefully one of them will answer later.

I'd like to know the answer too - because I like to know these things!

moneymabel

Thanks- hope the experts can help us both then ! :-)

victoriaplum1

I find it confusing myself, sometimes I ring them up and they say oh just tell us about that change April and other times they note it there and then and then I get a letter telling me of new change and new amount. I am quite bright but I don't get it at all, me and partner are just over threshold not to get WTC, they told me today that if my partner worked less we'd get WTC....not really an incentive to work there!

victoriaplum1

btw what I have found is ...even though I have told them of changes as they happen they still managed to mess up claim resulting in me owing them £400 that they are now getting back through paying me less CTC, makes me a bit mad when the fault is not mine, not that I gotta pay it back but that you never know where you stand