changes to tax credits threshold 2011

blondie245

would really like some help with the changes to tax credits threhold 2011 . i am a single working mum , i earn around £6600 per year . now at the moment i am sitting on the threhold , meaning my tax credits do not change . when a received my new awards 2010 they have predicted my income to go up by £175 for next years claim 2011. putting me over by £300 0r more meaning my tax credits are going down by £50 per month . so what happens as of next year when the new threhold gos up to £7470? i will be way under the threshold . i have looked everywhere for a answer to this . anyone help ?

kelloggs36

You can notify them that your income isn't changing.

flashnazia

blondie245 wrote: »

would really like some help with the changes to tax credits threhold 2011 . i am a single working mum , i earn around £6600 per year . now at the moment i am sitting on the threhold , meaning my tax credits do not change . when a received my new awards 2010 they have predicted my income to go up by £175 for next years claim 2011. putting me over by £300 0r more meaning my tax credits are going down by £50 per month . so what happens as of next year when the new threhold gos up to £7470? i will be way under the threshold . i have looked everywhere for a answer to this . anyone help ?

I don't undestand this. I 'm no expert and I'm hoping someone can confirm this but I thought tax credits reduce by 39p for every pound after the threshold? This means if you are £300 over you should only lose 39% of that?

blondie245

what i mean am over the threshold now but next year the tax threshold gos up by £1000 , so i will be way under . meaning that i should get all ??

kaitlinsmummy

blondie245 wrote: »

would really like some help with the changes to tax credits threhold 2011 . i am a single working mum , i earn around £6600 per year . now at the moment i am sitting on the threhold , meaning my tax credits do not change . when a received my new awards 2010 they have predicted my income to go up by £175 for next years claim 2011. putting me over by £300 0r more meaning my tax credits are going down by £50 per month . so what happens as of next year when the new threhold gos up to £7470? i will be way under the threshold . i have looked everywhere for a answer to this . anyone help ?

The 1st threshold is currently at £6420 so on your income of £6600 you are over by £180. I dont understand why they have added £175 extra on your income for 10/11 and it shouldnt effect this years award 10/11 as they work on actual income from 09/10 it will only effect it from 6th april 11 to when you renew if that makes sense

If your award notice is £175 different from what you have declared as your income for 09/10 you need to ring them as it maybe a mistake maybe the helpline operater mis heard what figure you said.

Either way the £180 over the threshold and the £175 they have added on wont drop your payments by £50 a month, Saying there is 8 more 4 weekly payments for this years award £355 x .39 = £138.45/ 8 = £17.31 ish every 4 weeks

Indie_Kid

blondie245 wrote: »

what i mean am over the threshold now but next year the tax threshold gos up by £1000 , so i will be way under . meaning that i should get all ??

The tax credits and tax allowance are two separate things.

blondie245

tax credits go down once you hit the tax allowance , thats how tax credits work your money out .