£25K disregard help please

gizmo111

This system of the £25K disregard is really confusing. Trying to help a freind who finalised award last year 08/09 with income of £6454. This year she has increased hours and has earnt £26,753 - will she be liable for an overpayment?
Thanks anyone who can work this out.....it's beyond me.

Thanks

themonkeybutler

It depends on individual circumstances to be honest, but unless anything unusual is going on, then no they wont have an overpayment.

toonbaz

the whole of their 09-10 award will be correctly based on the income of £6454 for 08-09 and there should be no overpayment for the award for 09-10 as the increase was no greater than £25k.
their will be a significant difference in the award for the current tax yr as they will now be based on the income of £26753, they should be receiving provisional payments at the moment until renewal is completed, if they had previously given an estimate of the higher earnings for 09-10 then this should have been taken into account from april, if they hadnt advised of the expected increase then payments made upto this point in current tax yr may be too high and would be taken from the remainder of this yrs award.
hope thats clear enough.

gizmo111

Thanks very much - she's just renewed so hopefully her reduced payments and any overpayments from April will be sorted soon.