change of circumstances tax credits

boots1_2

Hi I am hoping someone can help
I have recently returned to work from mat leave and have decided it is no longer a position i want to be in,my question is i have found a job i would like to apply for and was wondering if my income was to reduce from around £9500 to around £7000, and my partners income this year will be around £13200 reducing slightly 09/10 to £12500 would they reassess this straight away or would i have to wait until next year?
i have had a look on entitledto website and it looks like i would recieve about an extra £20 a week with the new figures so essentially only around £20 per month worse off{if its reassessed straight away} but i am sure i will be loads happier going to work.
thanks

leemack

it all depends what you and your partner have earned (gross) this tax year so far. add it all together but remember to disregard the first £100 a week of your maternity pay. Then add both your predicted earnings for the rest of the tax year. if the figure you come up with is less than your joint earnings last tax year, and less than any predicted figure the hmrc have for this tax year, then you can contact hmrc and ask them to use the new estimated earnings figures for this tax year, rather than use last years earnings. They usually make the change within 4 weeks.

this years earnings will then also be used to base next year's award on as well.

boltonangel

leemack wrote: »

add it all together but remember to disregard the first £100 a week of your maternity pay.

sorry to hijack your thread but I was very interested in this.

I received mat pay in tax year 08/09 but didn't know about this £100 rule so just gave them the p60 figures at the time of renewal. Does this mean that I potentially lost out on some extra tax credits?

leemack

boltonangel wrote: »

sorry to hijack your thread but I was very interested in this.

I received mat pay in tax year 08/09 but didn't know about this £100 rule so just gave them the p60 figures at the time of renewal. Does this mean that I potentially lost out on some extra tax credits?

sorry, yes it does. when you give them your income figures, if you're on smp (part of any contractual mat pay will be smp) you should subtract £100 for every week, then give them the amended figure.

Unfortunately this often isn't told to claimants.

boltonangel

thanks for that.

is it too late for some sort of rebate now. why don't they inform people of this?! grrrrrrr!

karenx

Yes I think it is too late as you would of already been given your final award letter and asked to check if it was correct etc and inform them if there was any ammendments to be made. And if you told them it was correct I dont think you can go back and tell them otherwise

lorelai34

boltonangel wrote: »

thanks for that.

is it too late for some sort of rebate now. why don't they inform people of this?! grrrrrrr!

It tells you in the renewal pack notes how to work out your income so don't think you would have much recourse. However you can phone them give them what your correct income should have been and then the head office would write to with their decision on whether or not they can change it.

boots1_2

Thanks everyone,
I think I will just bite the bullet and apply and if the reassessment doesnt happen we will have to make some cut backs.
I figure being happy at work is worth more than the money i would lose
Hopefully i will get one of the two jobs I apply for before I go insane lol
Thanks again