next years tax credits confusion!

laurenjs88

Hi there,

I get tax credits base on an income of £0 for 08/09 (i think!!) as i was on income support. so next year i guess they will base my tax credits on my 09/10 earnings?

i was still on income support from april to july 09 then started work on a salary of 16,500k but have earnt alot less than this as i spent a lot of time in hospital & i will be starting my maternity leave on maternity allowance on the 22nd feb 2010.

How on earth do we work out what my earnings are for next years tax credits?

My OH has gone from a 16k a year job to a 14k now waiting to start an 18k job in the space of the tax credits year too 09/10

Would we just calculate whats on our wage slips?? Were both pretty young and the tax credits lark is so over my head!!

Plus having another little one on the horizon will affect it all as well!

any help would be really appreiciated!

DreamerV

Just now you can only give estimates..I'd base these on your P45s (for jobs you've left in year) added to the latest payslip for your job. Then add what you reckon you'd earn in the 3 months left of the tax year (but don't count maternity allowance). At the end of the year, you'll have your p60s to give the final actual figures....although you need to check if it includes your old jobs or not, and if not, you need to add the p45 amounts to the p60.

karenx

It wont be an income of £0 it would be whatever amount your income support was over the year.
You should just use an under-estimate if you are using the current figures for the tax year otherwise you could end up with an overpayment!
If you dont want the risk of an overpayment then use the figures from year april 2009-april 2010 which you will get on your P60 when it arrives

Loopy_Girl

I still have the tax credit award letters when I started work a few years ago and my first one shows my PY income (when I would have been on IS) as £0.

When I queried it I was told that it's not a taxable income source so isn't used.

laurenjs88

That what they told me Loopy, they dont count MA either so that would be £0 for the period between feb & april im on it i think. My OH has both p45's now from the 2 jobs so i guess we will add those amounts to whatever he earns at the new job between start date and renewal time, Ive kept all my wage slips so i will add them up to and ask the advisor to go through it with me i think! or take a trip down to CAB when the renewal time comes!

Thanks