Tax credits help please

millymoomoo_2

Hello everyone,

I am about to renew my claim but just wanted to make sure I understand it correctly:o

The situation is this:

April 2009/2010 : I started off the year working self employed but in actual fact things were so bad I earnt nothing so in August I started part-time work for a company. When I phoned to tell TC I had to estimate my earnings for the year and I also had to estimate my hours (8) as I am on a 0 hour contract. At end of year I was within my estimate so all good.

Now for this coming year I am still on 0 hour contract but things are busy at work and so far my average hours are approx 15 per week. Unfortunately this could change very quickly if I am not needed for a while. Also obviously my yearly wage is going to be a lot more as I only earnt August to April last year but this year will be the full year.

So my question is, when I renew, do I take the chance that my hours wont drop and up my hours to 16? If I do so, will I need to estimate my yearly wage again and will that effect this years claim?
Or am I understanding correctly that it will stay the same until next April where the 25,000 disregard will come in?

My problem is that a few years ago when my partner was out of work he managed to get a job half way through the year and even though we kept TC informed we ended up hugely overpaid. I'm so worried about it happening again.

Sorry if I've confused anyone:o I've certainly confused myself:rotfl:

TaxCreditHelp

If you still have a joint award you will continue to receive Working Tax Credit if you work more than 16 hours per week. Your payments would increase if you jointly (or one of you individually) works more than 30 hours per week.

Tax Credit awards are based on your income so it would be in your best interests to over-estimate your income for 2010/2011 to ensure you avoid any overpayment and you can continue to amend this estimate as required throughout the year. If, come April 2011, your estimate is higher than your actual income then any balance due to you will either be received as a lump sum or will be used to reduce any existing overpayment.