Please help Tax credits renewal

lemondrops143_2

Hi I am about to fill in my tax credits renewal and our income has increased in the last year due to me doing some overtime bits and bobs

08/09 joint income was 20,099k
09/10 joint income was based on the above figure but turned out to be 25,249k
My question is do we have loads to pay back? or does the 25k disregard thing apply to this?

And if it does will next years award (10/11) be based on anual income of 25,249k
Or can I phone in year 10/11 to adjust this? as we are now back to earning £21k plus in October I will go on to maternity pay so it will drop even further to 19k for the whole tax year
Or will I just get a lump sum back in April 11?
I hope this makes sense I am driving myself nuts

mitchaa

lemondrops143 wrote: »

Hi I am about to fill in my tax credits renewal and our income has increased in the last year due to me doing some overtime bits and bobs

08/09 joint income was 20,099k
09/10 joint income was based on the above figure but turned out to be 25,249k
My question is do we have loads to pay back? or does the 25k disregard thing apply to this?

And if it does will next years award (10/11) be based on anual income of 25,249k
Or can I phone in year 10/11 to adjust this? as we are now back to earning £21k plus in October I will go on to maternity pay so it will drop even further to 19k for the whole tax year
Or will I just get a lump sum back in April 11?
I hope this makes sense I am driving myself nuts

10/11 will be based on 09/10 P60 info yes. As to your 1st question, you should be okay and protected yes.

However, 10/11 is going to be based on 09/10 and it reads like you are going to ammend this to £19k. As a result you will get a higher award (based on £19k as opposed to £25k) so if you earn more than this £19k you will be overpaid. In this scenario you would not be protected by the disregard so its very important that when you do this you slightly over estimate otherwise you risk being overpaid.