Changes to income - Tax credits

sorethumbs

As of Feb this year my salary has gone up by £1000 per year AND my partner has started part time work getting roughly £200 per month.

We are going to inform Tax credits of the changes but have a question regarding renewal.

When they calculate the award for the year 2011-12 do they work it out on what has been earned in previous year (from the P60 form)or what we are currently earning as there is a difference

My p60 will say 2010-2011 earned £16,000, my partner p60 will be £600 - actual income of £16,600

or

Will they award based on the salary we are due to earn in this next year - £16,800 & £2,400 = £19,200

Which figure do they use to base the award for 2011-12

Bit worried that they will award tax credits based on £16,600 and will be overpaid when it comes to the 2012 review as we have actually earned (£19,200)

zagfles

sorethumbs wrote: »

As of Feb this year my salary has gone up by £1000 per year AND my partner has started part time work getting roughly £200 per month.

We are going to inform Tax credits of the changes but have a question regarding renewal.

When they calculate the award for the year 2011-12 do they work it out on what has been earned in previous year (from the P60 form)or what we are currently earning as there is a difference

My p60 will say 2010-2011 earned £16,000, my partner p60 will be £600 - actual income of £16,600

or

Will they award based on the salary we are due to earn in this next year - £16,800 & £2,400 = £19,200

Which figure do they use to base the award for 2011-12

Bit worried that they will award tax credits based on £16,600 and will be overpaid when it comes to the 2012 review as we have actually earned (£19,200)

They'll base it on what you actually earned previous year (ie 2010/2011).

The fact that you'll earn a few k more in 2011/12 won't make any difference for next year because there's a 10k disregard for income increases. But it will for 2012/13, so you may want want to tell them sometime next year to avoid a small overpayment during the renewal window (ie between April 2012 and when the process the renewal).

But nothing to worry about now.