TC advice please

Numptytoes

Hello. My partner is self-employed and 2009-2010 we estimated his salary as £12,000 as he wasn't doing so well due to recession. His actual income has come in at £9800. Figures we will be telling TC. He looks to earn more next year probably around £16k, do we estimate his earnings as £16K with TC? I have read about a £25K disregard but I dont understand what that means. If we leave his estimated income at £12K what would happen? I dont want to have an overpayment.

I estimated my earnings as £9700 and earned £9700 but will only earn £8600 next year. Do I change my figure?

Numptytoes

Oh sorry and also I now work 17.5 hours instead of 21, do I have to let them know that?

alwaysonthego_2

Tax credits work on the previous tax year's income so you would only need to tell them about your actual earning for 09-10 tax year. As long as you do not earn more than £25K over that figure for 10-11 you will not get an overpayment.

Numptytoes

So basically I just leave the estimated figures at the same amount i.e. £9700 and £12000?

toonbaz

you should always provide a proper estimate for the current year aswell as giving your actual income for the previous year, yes your award will still be based on previous yrs income so it wont affect your current award but when we get to next april they start to pay provisional payments until your renewal is complete, these provisional payment will be based on whatever estimates you have given so if you left it at 12k but he earned 16k you would be getting provisional payments which are higher than they should be.
always best to keep things upto date just to cover your own back.