Tell Tax Credits about pay rise?

sausageface

Hi,

I am vaguely aware of the tax credits £25k disregard but do not understand how it works. My work have given us a payrise of about £1000 (for this year and last year jointly) which is to have last years money go in my October pay and the rest spread over the year.

Do I need to tell tax credits about this? When I renewed, when asked what I was going to earn this year I said that my pay was going to be around the same as last year as I did not know that we would be getting any rise.

Do I need to let them know now or just when I renew next April. If I leave it until April will there be a chance of an overpayment?

Thanks,

SF

woozywendy

I think the theory is that if you earn any extra up to £25000 you do not have to inform them. The payments will drop from next April when you renew. If you can work out what your wage will be up until then you can tell them now and they will recalculate your payments. I would not have thought a £1000 would make much difference to be honest but I may be wrong. My husband had a wage rise and a bonus and our payments did not change.

AnotherMakes3

I would say it really depends on what bracket you fall into. my other half earned £10K one year then £9.8k the next and our payments went up as he had fallen into the next band. I would say to keep yourself and them right phone and tell them now.