Tax credit help please

Numptytoes

Hello.
The tc we are currently receiving monthly are based on last years income (my husband is self employed and I work part-time PAYE). They didn't ask us to estimate a new income for 2010-2011 when we did our renewal. They just said they would base 2010-2011 on last years income. We are probably going to have earnt more in 2010-2011 so does that mean we would have been overpaid? Or will the 25k disregard come in? (of which I don't really understand). Thanks.

zagfles

The 25k disregard comes in. As long as this year's income is no more than 25k higher than last year's then basing it on last year's won't cause an overpayment.

(next year the disregard goes down to 10k)

Numptytoes

So if my husband earns 7k more than last year in this financial year we wont owe them any money? Is that what you mean? THanks for your help.

zagfles

Numptytoes wrote: »

So if my husband earns 7k more than last year in this financial year we wont owe them any money? Is that what you mean? THanks for your help.

Yes. Your run-on payments from April (before they process your renewals) may be higher than they should be but they'll take it off the rest of the year - shouldn't be too much if you get your renewal in quick.

But you're OK for this tax year.

Numptytoes

zagfles wrote: »

Yes. Your run-on payments from April (before they process your renewals) may be higher than they should be but they'll take it off the rest of the year - shouldn't be too much if you get your renewal in quick.

But you're OK for this tax year.

Thank you so much. I have been worrying sick but it is very hard to know what self-employment income we will receive.