WFTC confused

Supermom

Hi hope someone can help as the whole Tax credits thing totaly sends my head in a spin:o

Do the calculate this years award on last years income, or on the
estimated income??

For example if your earnings were say £20k 2009-2010
but your estimate on your renewal form was £25k, which figure would they use when working out the award for 2010 -2011??

I called yesterday to advise a change of circumstances not changing any money values as such just employment details but income stays the same and they said my award would now be recalcuated but Im confused as to why..........

Help

lauzellen

They use the previous years income (20K) for current yrs award (except from april until you inform them of the actual amount on your P60 at renewal at which point they use the estimated income you provided.

e.g. In 2009-2010 your income was 20K and you estimate 2010-2011 to be 25K. The 2009-2010 income (20K) is used for your 10/11 award and the estimated 10/11 income (25K) is used for your 11/12 award from april '11 until you give them actual figures from your P60 10/11.

Have the number of hrs changed from the 16-29 category to 30+? Otherwise i'm not sure why they would do a recalculation unless it's automatically triggered.

Supermom

No change in hours just a change in employers name (company name change) but the advisor now said that they would be sending out a new notice and it would show a change in payments. So confused !!

AimeesMum_2

Any change of circumstances triggers a "one-off payment" therefore reducing your payments for the rest of the tax year. You will almost definetely find a one off payment in your account over the next few days. This will be taken off your entitlement for the remainder of the year. For example -

Your tax credits for easy comparison are £100 per week and there are 10 weeks left in the tax year. You will generate a one off payment of £100 leaving you £900 for the remainder of the tax year therefore every subsequent payment would reduce by £10 to cover the one off payment.

Aarons_mummy

I just changed my address and the woman told me my award would be recalculated, every time I have called to change something it has triggered a new award to be sent to me, not sure why but it seems to always do it, for me anyway!

Supermom

Thanks to all who replied but I'm still not sure if they will recalculate it on this 2009-2010 income or the estimate figure (my heads in a spin)

flea72

Supermom wrote: »

No change in hours just a change in employers name (company name change) but the advisor now said that they would be sending out a new notice and it would show a change in payments. So confused !!

why have you notified them of a change in company name?

you dont even have to inform them of a change in employer. the only changes you contact them for are a change in circumstances, ie income or family set-up

F

Supermom

Because I have always been told to let them know of any changes in employment details.