Tax credits - will I have an overpayment?

flea72

Bradbrown wrote: »

The reason our income has jumped is cause one of has gone back out to work after taking a break to look after our child - we were on my income of 30k and our now on 60k with two wages coming in

How does the income disregard effect this?

i take it your OH returned to work in december as this was when you informed HMRC of a change in income?

if so, do they plan to earn over £25k in the next 4 months? if not, then what are you worrying about?

F

flea72

zagfles wrote: »

What you were worried about in the first place - there'd be an overpayment and you'd have to pay back some or all of this year's tax credits.

i think the OP is trying to find out exactly how much they can earn (to the penny) this year, without loosing their basic rate tax credits, which is why they keep questioning, and questioning the disregard rules

having read back through all the bumpf, and my thinking is correct, then their OH will only have been back at work since december, so they will only have been overpaid about £150

however, im sure your intimation that they can earn up to £75k without any repercussions, may well mean they start putting in the OT

OP, if you earn over £75k this tax year then you will have an overpayment, seeing as you have breached the disregard, and the maximum entitlement level - whether they reclaim that £150 or not is another question

but come back here, and ask for advice, once thats happened, as the what-if questions could just go on and on, and goal posts keep moving

F

Bradbrown

The estimate I gave tax credits was for the whole of 2010/11 not just from December.

I wasn't going to bother telling them until the end of the tax year and then realised they would pay me on the 2009/2010 earnings until July and I would have to pay it back.

flea72

july is the latest you can send your return in

there is nothing to stop you doing it in April, and thereby stop any overpayment before it occurs

but its only going to be £150 tops - will you honestly not be able to find this amount to pay back?

how about this. you know you will be overpaid, so just dont spend that money - put it in an account and return it when requested

some might even think that you made sure your wife didnt start work until after you had your award finalised last year, and then thought she would earn just under £25k, so you could dodge the disregard, but then in december you realised it wasnt going to plan? (although it actually is)

F

Bradbrown

flea72 wrote: »

july is the latest you can send your return in

there is nothing to stop you doing it in April, and thereby stop any overpayment before it occurs

but its only going to be £150 tops - will you honestly not be able to find this amount to pay back?

how about this. you know you will be overpaid, so just dont spend that money - put it in an account and return it when requested

some might even think that you made sure your wife didnt start work until after you had your award finalised last year, and then thought she would earn just under £25k, so you could dodge the disregard, but then in december you realised it wasnt going to plan? (although it actually is)

F

I've never sent a return in - Ive always been auto-renewal - since 2003.

JC9297

If your family income is around 60k there is no need to put the money aside as some people have suggested, you just pay it back if asked to (which I'm pretty sure you won't be), as anybody on that income will not struggle to find a couple of hundred quid unless they are servicing major debts!

flea72

Bradbrown wrote: »

I've never sent a return in - Ive always been auto-renewal - since 2003.

it only auto renews, if you dont have a change in circumstances to declare.

which is why im questioning, when you OH returned to work as this would have a bearing on the situation - if it was before the July cut-off then you should not have auto-renewed your claim

F

Bradbrown

Sh** didn't realise that lol - Am I in trouble?

flea72

Bradbrown wrote: »

Sh** didn't realise that lol - Am I in trouble?

trouble to the tune of a £545 overpayment, thats all - but if they dont ask for your OHs start date, you might be in the clear, on that also

anyway, they wont take it any further, as you dont really seem a master criminal

F

no-oneknowsme

At 75k would you really need to worry about tax credits ????