child tax credit possible overpayment?

helenj1

hi im asking on behalf of a friend.she told the tax credits that earnings for 08/09 where say £12000 which was correct so last year she got x amount rax credits for year 09/10.on reward they said they would base this years from 5th april 2010.tax credits on an estimated figure of 12500 for 09/10.she has renewed this year and said that the figure for 09/10 was actually £14500.would this cause an overpayment of last years tax credits or just mean this years will be less

thanks in advance

toonbaz

the income of £14500 for 09-10 will only effect this yrs award. last yrs award will correctly have been based on 08-09 income of 12000. there should be no overpayment for last yr, payments from april have been based on 12500 est so may now reduce for rest of this yr due to actual income of 14000.

TaxCreditHelp

Income for 2009/2010 will also affect payments for this year unless an estimated income figure for 2010/2011 is provided. It's worth checking with the helpline what the estimated income for 2010/2011 is showing as on the Tax Credit system, as this figure will be used to calculate the total Tax Credit award for the year to 05/04/2011.