is there banding for tax credit

hil217

we have just been told we have been overpaid tax credit by about £2100. I use to do agency work and hours often changed which i always told them about. my husband was made redundant last year and started his own business. He didn't think he would be in a postion to pay himself anything but as he made a profit in the first year was able to pay himself £5,000 at the end of the finanical year, we have a joint income of about £26,000. We declared this at the review only to find that this meant they had over paid us by £2100. Thankfully we don't have to pay it back in one go, but all our taxs credits have been stopped until they claw the money back so will take about 4 years to do so. Its such a bad system if you don't have a straightforward job which pays the same all the time. I just worry that our circumstances change for the worse and we won't beable to get any more tax credit because we own so much. Does anyone know if there is any sort of salary banding scale or how they actually work it all out???

calleyw

What are we talking about working tax credits or child tax credits?

If is it Working Tax Credits without children the threshold for a couple to claim is £17.2K.

Going to need a bit more information before anyone can help you.

Yours

Calley

alwaysonthego_2

You could have got the overpayment if you underestimated your income for a current tax year. This means that you have no income disregard and any money earnt above what you have estimated will result in an overpayment.

hil217

sorry first post ...it is child tax credit