Tax Credit Income change

Jamiej_2

I've just had an interesting chat with TC helpline and something just doesn't ring true.

I called them earlier in the week to renew/finalise 09/10 and report some changes for 10/11 (wife started new job so her annual income up from £0 to approx £10k and childcare costs). I then called them today to check that changes had been made in the system and my payments had been updated. I was given a figure that just seemed to high based on online calculators (entitledto).

When I queried the amounts given I was told that even though I had provided figures for 10/11, they would use 09/10 as they were lower and would be more beneficial to me. He said that providing the figures I had given for the 09/10 were accurate there would be no overpayment calculated at the end of 10/11 despite our income going up by £10k.

Is this right?

karenx

yes your claim is based on last years income. So next tax year your payments will be lower as it will be based on this years income

Jamiej_2

So in-year changes under £25k don't cause an overpayment at year end?

Sorry, trying to get my head around the £25k disregard.

newbie1980

the reason for no overpayments will be because they have a 25k buffer so ur income can go up by this before u need to inform them
im sure some1 will explain more

Jamiej_2

OK thanks. Having had overpayments for the last few years I was determined to make sure that they have everything as accurate as possible to avoid yet another year of reduced payments.