Disregard help

Lovelamour

zagfles wrote: »

Yes. 19k was your actual income last year, 27k this year, so there's no overpayment. There's no estimate involved, TC work by using last year's income unless you give them an estimate.

Estimates are where your income changes and you phone to tell them, and they can increase (or reduce) your payments. Disregards obviously aren't going to apply to estimates otherwise everyone would phone them with a low estimate!

What I find really weird is that on the forms our final income was £18700 last year but they say they will base next years award on income of £19200!! where did that come from? I have never given them a figure, just left them to decide themselves! Do they account for inflation or something?!

zagfles

Lovelamour wrote: »

What I find really weird is that on the forms our final income was £18700 last year but they say they will base next years award on income of £19200!! where did that come from? I have never given them a figure, just left them to decide themselves! Do they account for inflation or something?!

Yes it's inflation - but it only affects next year's initial award, it doesn't affect this year's, and they'll adjust it when they get your renewal.

no-oneknowsme

But Zagfles...because of the extra £8k earned by the OP , next years tax credits are going to be affected isnt that the way it works ?

I would think an extra £8k would reduce next years payments quite a bit ?

zagfles

no-oneknowsme wrote: »

But Zagfles...because of the extra £8k earned by the OP , next years tax credits are going to be affected isnt that the way it works ?

I would think an extra £8k would reduce next years payments quite a bit ?

Yes next year's award will be affected by the increase, this year's won't because of the disregard.

So in the "run-on" period ie between April and when they process the renewal there may be an overpayment, this will be taken out the rest of the year's award.

Lovelamour

no-oneknowsme wrote: »

But Zagfles...because of the extra £8k earned by the OP , next years tax credits are going to be affected isnt that the way it works ?

I would think an extra £8k would reduce next years payments quite a bit ?

Hiya yes I realised this would happen. We are happy to have significantly reduced payments from April just didn't want to have an overpayment this year!