Help with child tax credits

Confuzzled.com

Hi

My husband works in an extremely up and down job where sometimes they get lots of overtime and other times of the year nothing.

I have calculated that he has earned more than what we declared for last years figures and so we have been overpaid and will have to pay some back. Our problem is, this year he has earned about £2500 over last years figure but they have just been told not to expect much overtime this next tax year. I don't want them to cut our payments right down this year when we are going to be down in earnings as it is.

Will the HMRC take this in to account when calculating 2011/2012 figures? I know last year they asked me what they should base the 2010/2011 on. Hoping they will do the same this year.

Any advice greatly appreciated. I have called the helpline but just keep getting passed around in queues.

Thanks

allen35

As far as i'm aware you can ask HMRC to base your new award on estimated income as you did last year, it may be useful to keep an eye on income through the year and inform tax credits of the change if overtime becomes the norm, generally overpayments will be reduced from your next award at an affordable rate and in certain circumstances (hardship) you can request for the overpayment rate be reduced.


(In some cases, for example, if a claimant is self-employed, a claimant can give an estimated income figure. S/he must do this by 31 July and confirm the amount by 31 January of the following year in order to avoid an overpayment.)

Lovelamour

Confuzzled.com wrote: »

Hi

My husband works in an extremely up and down job where sometimes they get lots of overtime and other times of the year nothing.

I have calculated that he has earned more than what we declared for last years figures and so we have been overpaid and will have to pay some back. Our problem is, this year he has earned about £2500 over last years figure but they have just been told not to expect much overtime this next tax year. I don't want them to cut our payments right down this year when we are going to be down in earnings as it is.

Will the HMRC take this in to account when calculating 2011/2012 figures? I know last year they asked me what they should base the 2010/2011 on. Hoping they will do the same this year.

Any advice greatly appreciated. I have called the helpline but just keep getting passed around in queues.

Thanks

Won't you be covered by the 25k disregard? So you shouldn't have to pay anything back?

allen35

Lovelamour wrote: »

Won't you be covered by the 25k disregard? So you shouldn't have to pay anything back?

Only problem is if you earn let's say £22000 in year 09/10, this will be the figure they use for 10/11 tax year.

If you know your income is going to be lower you can request HMRC use an estimate of income, lets say for example £20000 and you eventually earn £22000 in 10/11 due to extra income you will have been overpaid so HMRC will recover anything paid above the rate for an income of £22000.

The £25000 disregard is where i earn £6000 in 09/10, once again this will be used for 10/11 and i earn £30000 there wont be an overpayment as previous years income is used but 11/12 will be drastically reduced.

At the moment HMRC will allow you to use the lower of 2 tax years but the £25000 dis' is being greatly reduced to £10000 in 11/12 tax year.

Lovelamour

allen35 wrote: »

Only problem is if you earn let's say £22000 in year 09/10, this will be the figure they use for 10/11 tax year.

If you know your income is going to be lower you can request HMRC use an estimate of income, lets say for example £20000 and you eventually earn £22000 in 10/11 due to extra income you will have been overpaid so HMRC will recover anything paid above the rate for an income of £22000.

The £25000 disregard is where i earn £6000 in 09/10, once again this will be used for 10/11 and i earn £30000 there wont be an overpayment as previous years income is used but 11/12 will be drastically reduced.

At the moment HMRC will allow you to use the lower of 2 tax years but the £25000 dis' is being greatly reduced to £10000 in 11/12 tax year.

Ah I see. My partner is self employed and earned 18k last year and this year we have received tc payments based on last years earnings of 18k. However he will actually earn around 25k, but tc said we wont have an overpayment but in April our payments will greatly reduce.