Just a little question about t/c disregard

cazj80

Hi,

I am a little confused and wondered if someone could provide me with some advice on the £25,000 disregard (I think it's called). I've tried to find this out myself but don't really understand it.

Basically, at the moment our annual income for this tax year will be £11500, and I have estimated our tax credits for this tax year on this amount.

If our income increases (hopefully it will, fingers crossed), I will tell the tax credits, so that our payments are reduced, but I don't understand what this £25000 is for. Is this where people don't tell the tax credits office about an increase in income so they don't have to pay any money back or am I completely misunderstanding it?

I guess what I am looking for is more of an explanation. I would be quite happy for my tax credits to go down as I would want to minimise any overpayment.

Indie_Kid

There's a sticky at the top of the page about this.

cazj80

I think I may be a little bit blind today, but I can only see the stickies on a guide to benefits, it's all about helping people, welcome and useful links, and I can't find an answer in those.

However, I am tired, so I will go and have a look again!

thank you for your reply :-)

cazj80

right, I have had a read and wondered if you could just confirm if my understanding is correct:-

If my t/c claim for this tax year was based on my earnings of last year the disregard applies.

However, as I estimated my income for this tax year based on my current earnings, then the disregard doesn't apply as I have already amended the tax credit claim

I would be grateful if anyone could just confirm if this is right. I will be updating the t/c office as soon as there is any increase in income as I prefer everything to be up to date and correct, but I just didn't understand the disregard!

Thanks

DaisyFlower

The disregard only applies to claims where tax credits on worked out on finalised figures from the previous year.

If you amend your claim and have an estimated earnings on the award then the disregard is no longer in play and if you earn more than estimated you will have an overpayment.

JC9297

cazj80 wrote: »

right, I have had a read and wondered if you could just confirm if my understanding is correct:-

If my t/c claim for this tax year was based on my earnings of last year the disregard applies.

However, as I estimated my income for this tax year based on my current earnings, then the disregard doesn't apply as I have already amended the tax credit claim

I would be grateful if anyone could just confirm if this is right. I will be updating the t/c office as soon as there is any increase in income as I prefer everything to be up to date and correct, but I just didn't understand the disregard
Thanks

Yes, your understanding is correct.:)