Can any tax credit genius help!!

nearlysorted

Afternoon all,
Wondering if anyone can clarify something for me please:)

Will i have a tax credit over payment next year with the income disreguard?
Last year 09/10 i earn't just short of £20,000 hubby was a sahd. In April hubby claimed JSA cont based until Oct 10 when he found a full time job, annual salary £18000, although this week got a payrise with a promotion to £20,000 then rising another £2000 after successful probation period in 3 months. In Sept i went on maternity leave so this year so will have only earn't £13,000 with £3900 disreguarded for tax credit so.......
09/10 my sole income £20,000
10/11 my reduced income £13,000 less £3900 (mat allowance)
Hubby £1690 JSA and income for this tax year £9000, no payrise included yet
11/12 will be my £20,000 and hubby's £22,000.
Now i am not a thick person;) I just don't understand the disreguard when one person was not in employment and then finds a decent well paid job which will obviously jump the £25,000 disreguard.
We really need to know where we stand with tax credits and more importantly the childcare element. We have 4 children ranging from 9 years to 9 weeks at the mo!.
I work 13 hour shifts 4 days a week over 7 days, and hubby works Mon- Fri with every other Sat. He leaves 6.45am and gets in about 6.30ish pm traffic depending. So our childcare is needed for all 4 children, child minder flexible with days and hours allowing us to both work but costs us set fee of £300 per week.
The question is..... Will we still get tax credits next year, or have any overpayments? and more importantly the childcare element? and if so how much? We need to take it all in to consideration before one of us has to then become a sahp.
Any help and advice would be greatly appreciated from any genius's out there:D and sorry for the long winded post!

nashly

Why not ring the tax credits helpline, I have found them very useful on questions similar to yours.

lauzellen

The disregard is changing to 10K from April so this is going to affect your tax credits... meaning earning anything over £29790 (10/11 income + 10K) will affect the award and it will be based on current yr estimated income - 10K e.g. if predicted to earn 42K they will use the figure 32K to calculate your award.

nearlysorted

Thank you for your speedy replies, i am still somewhat confused though!
Meaning this year we have given estimates which are still nearly spot on £13,000 minus £3900 and £9000 with JSA £1690 making £19790, however....
Thanks to your advice while writing this reply i called TCO they confirmed that next years tax credit 11/12 will be based on this years income £19790 approx and then the year after 12/13 will be when based on the larger earnings £40,000 approx. Very nice chappy also voluntarily told/warned me about the reduction in the childcare element which i thought was rather sweet of him!!

lauzellen

That advice sounds wrong to me - if the disregard was staying at 25K then yes that would be correct but it is reducing to 10K so 11/12 cant be based on 10/11 income as you would end up with a substancial overpayment!

zagfles

nearlysorted wrote: »

Thank you for your speedy replies, i am still somewhat confused though!
Meaning this year we have given estimates which are still nearly spot on £13,000 minus £3900 and £9000 with JSA £1690 making £19790, however....
Thanks to your advice while writing this reply i called TCO they confirmed that next years tax credit 11/12 will be based on this years income £19790 approx and then the year after 12/13 will be when based on the larger earnings £40,000 approx. Very nice chappy also voluntarily told/warned me about the reduction in the childcare element which i thought was rather sweet of him!!

He might have been nice but he was talking rubbish, as lauzellen said the disregard is going down to 10k next year so you will have an overpayment on those figures. They'll initially base it on this year's earnings but as next year's will be more than 10k greater you will need to tell them otherwise there will be an overpayment.