Understanding Working Tax Credits

Person_one

Sorry if I'm being very dense and this is a stupid question.

I've used the 'Do I qualify' tool on the HMRC site which says no, I don't, however it only asks for my income from april 09 to april 10, and doesn't take into account the salary for my new job which is about 50% of it!

If I apply will I not get anything based on my current very low wages because I earned more in my previous job?

I don't get it!

Hammyman

Working Tax Credit awards for the current year are based on previous years earnings HOWEVER it is a bit misleading because if there's a change in circumstances, you notify them straight away and payments change immediately. The HMRC sites tool works on the very basic set of rules. Get your application in now and forget what that site and that flipping waste of time "entitledto.com" says.

someonehadmyusername

tax credits use previous year income unless current year income is lower or more than £25k more than previous year, in which case they use current year income, do the calc again as if your 10/11 income was 09/10 and if entitled, call for claim pack

Tigsteroonie

You'll need to submit a claim based on last year's 09/10 wages, and (presuming you did earn too much) they will award you a "zero" claim amount. Once you've had confirmation of this, you can then phone them up and ask them to re-calculate based on the current year's wages and give them the expected figures; they will do so, and then you'll get any WTC you're due.

(I had to do this for CTC last year!)

Person_one

Thanks, just what I wanted to hear! Just have to get through on the phone line now :mad: