TC/WTC help for new tax year

allen35

How did you assess 2010/11 income?

Are you saying that if earning £26000 in 2011/12 tax year, it will be based on that amount and not previous years less threshold.

OP states she earns £10800 and is considering taking extra hours which will increase her income to £26000 approx.

What income have you input for both tax years?

moneysavermum_2

bargain_hunter_1964 wrote: »

Hi Nje24,

I have just undertaken a calculation for you on the quickcalc that i stated and it calculates £108.75 child tax credit and £95.52 child care costs. this is on the new rates for 2011/12 and based on you earning £18100 per annum, having 2 children and child care costs of £140 and working 30 hrs per week...this also assumes that neither you or your children have any disabilities or that either child is less than 1 yr old.

THANKYOU FOR THIS CALCULATION:beer:

flea72

allen35 wrote: »

How did you assess 2010/11 income?

Are you saying that if earning £26000 in 2011/12 tax year, it will be based on that amount and not previous years less threshold.

OP states she earns £10800 and is considering taking extra hours which will increase her income to £26000 approx.

What income have you input for both tax years?

when you send in your return, you are confirming your income for the previous year, but also stating that to you knowledge there are no changes to your income/circumstances for the coming tax year

if the OP starts earning more, before the cut-off date for returns, then they should really be declaring the new income and increase in hours - the disregard only really comes into play, if your income increases after your award has been finalised

normally, if the OP didnt increase their hours/pay until after July, then their award would be based on the lower income, but as of april the disregard will drop to £10k, so no matter what the OP will have to give revised income figures at some point, and this means their award will be re-assessed based on the £26k

F

twinnymum

Thanks everyone for your replies, I kinda get it now :-S

zagfles

flea72 wrote: »

when you send in your return, you are confirming your income for the previous year, but also stating that to you knowledge there are no changes to your income/circumstances for the coming tax year

if the OP starts earning more, before the cut-off date for returns, then they should really be declaring the new income and increase in hours - the disregard only really comes into play, if your income increases after your award has been finalised
F

Sorry, but where do you get this rubbish from? There is no significance whatsoever in the cut off date or award finalisation date wrt the disregard. The disregard applies to income increases between one tax year and the next, period. Regardless of when in the year your income increased.

If in April you tell them you're going expect to earn 30k in the new tax year, and you then submit your renewal in May saying you earned 20k the previousyear, your tax credits will be based on an income of 20k. And the fact that both you and they know you are going to earn 30k is irrelavent. The disregard applies.

allen35

We await Mr Flea's reply, i got fed up explaining