Tax Credits - overpaid last year/possible chance of working full time this year

bexsmum

Hi Everyone,

I've been on the entitledto site this morning trying to work out my tax credits for last year and the coming year.

I'm a single mum of 1 13yr old, currently work 30 hours per week. I had to take 12 weeks sick leave last year due to an op going slightly wrong and me being quite ill. My employers at the time said it was "at their discretion" whether I was paid full pay. Because I was worried about money, and a mortgage to pay I told tax credits I could possible loose a month to 6 weeks salary. They duly changed my tax credits accordingly and told me to call them when I get my P60 (which I will when I get my renewal notice).

Now then, here comes the calculations. 2008/2009 I earned £13,429, I predicted £11,500 for 2009/2010 but actually paid £13,175. I think I've been overpaid about £440 last year.

I know that has to be paid back - so first question do they take it back per week over the full 12months?

Second things is that I have the opportunity to work full time from May. Would I notify Tax Credits asap that my salary would increase to 16630 for 2010/2011, would this then have a knock on effect in reducing my tax credit immediately or do I just wait (as they told me to this year) and let them know next April when I get my P60 that my salary has increased?!

I just don't want to be hit with an overpayment again next year as I've worked out I'll be better off salary wise but will loose it in working tax credit and not actually going to be that much better off in the long run.

Thanks for your help and advice in advance everyone

B

karenx

They wont take the money in 1 payment if you owe them. They will work it out weekly to take money back. If you think they are taking too much per week you can ask them to lower it slightly. But tbh the higher they take the quicker its paid back and you dont have to worry!
Give your P60 figures when you get your renewal pack and they will then send you this years figures. You can then chose to get this years tax credits based on last years salery or call them up and give an estimate for this years figure and use that. But if you want them based on this years figure overestimate what you are going to earn so you dont end up with an overpayment if you end up earning more! The limit for claiming WTC is 17k so you are already very close to that.