tax credit entitlement

emsywoo123

Posting on behalf of my sister............

She worked F/T last year for approx 6 months, and then was made redundant. Did not claim any benefits, lived on savings/parental support.

Earnt approx £7K financial year 09/10.

Flatmate of 8 years emigrated last week.

Now in full time job (as of Sept 10), therefore taking her over tax credit limit, but as I understand, would be based on last years figures. But would this result in a massive overpayment?

She is 31, single, no dependants.

Entitled to suggests she is eligible, but concerned that this years salary will result in overpayment.

Many thanks :A

jobbybumface

Hello there, nope, tell her to claim as the tax credits will be based on the py income of 7k, please remember to tell her that one her claim is in payment to call the tax credits helpline and tell them the current year (10/11) income to avoid overpayments in the 11/12 tax year. Hope that makes sense.

davebeddo

There is a Tax Credit entitlement calculator on the HMRC website which wil tell you the exact amount she would get.

Once her income of 11k is used to calculate award, this will drop to zero, but some thing for a short while is better than nothing

emsywoo123

jobbybumface wrote: »

Hello there, nope, tell her to claim as the tax credits will be based on the py income of 7k, please remember to tell her that one her claim is in payment to call the tax credits helpline and tell them the current year (10/11) income to avoid overpayments in the 11/12 tax year. Hope that makes sense.

Hi there, thanks so will she get TC based on the £7K until april 2011 or once it is in payment and she advised them of expected income this year, it will go to zero?

Sorry just don't want to cause a problem for her :A

jobbybumface

She will get wtc right up to April 2011, however, even if her 2010/2011 income is anywhere below £13000 she will still get etc in the next tax year 2011/2012

Murgatroyd21

She should get about £47pw wtc based on 2009/10 income and working more than 30 hours pw. You say she only started FT work in September, was she working before this? What's her expected income for 2010/11? As said above, if under a certain figure could still get some wtc from next April based on this years income.