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Tax Credits Award
Lip_Stick
Posts: 2,415 Forumite
Hi all
Someone I know has just started a new job after being unemployed for over a year. They were advised to claim for tax credits and have now been awarded around £50 a week! This is a job that pays around £13k pa. They are single. Does this seem right?
I'm questioning it because when I was childless, single and claiming tax credits I got a lot less than that for a lesser wage, and also I think they might have been awarding it based on the figures for when he was unemployed. I just want to forewarn him that he may have to pay x amount back. He says they know all circumstances and have been in touch with his employer, but tax credits have messed things up with myself before, so I know it doesn't run perfect. Any advice is appreciated. Ty.
Someone I know has just started a new job after being unemployed for over a year. They were advised to claim for tax credits and have now been awarded around £50 a week! This is a job that pays around £13k pa. They are single. Does this seem right?
I'm questioning it because when I was childless, single and claiming tax credits I got a lot less than that for a lesser wage, and also I think they might have been awarding it based on the figures for when he was unemployed. I just want to forewarn him that he may have to pay x amount back. He says they know all circumstances and have been in touch with his employer, but tax credits have messed things up with myself before, so I know it doesn't run perfect. Any advice is appreciated. Ty.
There's a storm coming, Mr Johnson. You and your friends better batten down the hatches, because when it hits, you're all gonna wonder how you ever thought you could live so large and leave so little for the rest of us.
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Comments
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Yes its right, tax credits are based on your previous years earnings, being unemployed for a year would mean you are awarded the full tax credits rate
It will be reduced alot lower when its renewed next year.
Tell him to enjoy it whilst he can, and dont become dependant on the extra spends.0 -
He will be getting tax credits based on his previous year income so that sounds about right. However it's important to find out if he has given them his new income for this year because in April 2011 his tax credits will start being based on the 2010-2011 income and if they have never been given an estmated income they will keep using the 2009-2010 until the renewal is completed and this could be anytime between April to July.0
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Thanks for the info folks. I just wanted to make sure he didn't go spending then have a huge amount to pay back as sometimes happens. He's looked at the thread so if he sticks to the advice, it's not my fault if things go wrong! lol. Ty again There's a storm coming, Mr Johnson. You and your friends better batten down the hatches, because when it hits, you're all gonna wonder how you ever thought you could live so large and leave so little for the rest of us.0
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