can anyone help me with a tax credits question? pleeeease! :)

dotcotton

Hi all! im after a bit of advise regarding tax credits if anyone can help?

Well basically my partner is self employed and on average earns around £10,000 a year. When i did my renewal back in april i estimated his income at this amount, but today worked out his income so far this year and its looking more like its going to be around £11,500 by next april. So do i now ring tax credits and give them a new estimate? and if so will they re calculate my award for this year? But also i have been told that unless there is a rise in income of 25k or more then it wont make a difference anyway? im confused?!
The thing is i reeeeally dont want an over payment occur next year.

Thanks in advance!
Lou x

Ps, not sure if this is relevant but, im not currently working so this is our only income. and we also receive ctc as we have 2 children.

Hammyman

dotcotton wrote: »

Hi all! im after a bit of advise regarding tax credits if anyone can help?

Well basically my partner is self employed and on average earns around £10,000 a year. When i did my renewal back in april i estimated his income at this amount, but today worked out his income so far this year and its looking more like its going to be around £11,500 by next april. So do i now ring tax credits and give them a new estimate? and if so will they re calculate my award for this year? But also i have been told that unless there is a rise in income of 25k or more then it wont make a difference anyway? im confused?!
The thing is i reeeeally dont want an over payment occur next year.

Thanks in advance!
Lou x

Ps, not sure if this is relevant but, im not currently working so this is our only income. and we also receive ctc as we have 2 children.

Ring them and inform them of the increase in the estimate. Your payments will change but not dramatically so. The £25k thing is a bit confusing - they will reclaim any overpayment at some point - next year if you don't tell them.

sassysar

Tell them asap, if you have made an estimate the £25 000 rule does not apply as i found out to the tune of £2000. (I was £3000 out with our estimate and had to pay back this and it was taken from the next 2 years payments)

bestpud

If your current award is based on your actual income for 09/10 then the £25k disregard applies and you will be fine.

If your actual earnings were more than £10k in 09/10 (perhaps because you were still working then?), the disregard won't apply and you are best telling them asap to avoid an overpayment.

Tell them either way before April so that next years provisional award is based on the correct figure for this year.

dotcotton

thanks for your help everyone, will give them a call and update them.

System

When you did the renewal the estimate you would have provided would have the estimated 09/10 profit presumably because your partner had not done his 09/10 tax return at that point.

TCO recognise that your partner has until 31st January 2011 to submit his tax return to HMRC and allow you till that date to provide his actual 09/10 profit.

dotcotton

He filed his 09/10 tax return in april, which was only £5800 (he was layed off alot last year!) so when i did my renewal they asked me if i estimated that it would be the same for this year, i said no and estimated 10000. i didnt want them to use last years figure as i didnt want to incurr an overpayment.