child tax credit question

liverpool34

Hi just after some advice me and my partners child tax credit payments for 2010/2011 was based on the earnings for 2009/2010 tax .we gave 2010/2011 figures as 15000 and 5000.i got a bonus during the the year so phoned to say my earning would be 16500 for year ending 2010/2011.so no change for 2010/2011 payments.in the end i actually earned just over £16000 for year to april 2011.but my partner earned 400 pound more so earned roughly 5400.will they combine the amounts we actuauly got for 2010/2011 so we havent been over payed or will the disregard cover this.ive phoned today as ive had my hours cut and will only be earning 13000 for year 2011/12 so she said this will be put in to take effect now.person at tax office said do partners when renewal comes through.
hope this makes sense

any advice be great
thanks in advance

liverpool34

any advice be great on wether they combine both so we not been over paid or wether the disregard will cover my partner earnig an extra 400pound for last year(2010/2011)be great as i was told if you phone and change things during the year like we did when i phoned to say i would be earning more you lose the disregard
thanks

xshootingstarsx

The payments are based on a joint income. £400 greater won't make a great difference to the claim. The payments for this year may reduce slightly to take into account that your income has changed but not much. I hope this makes sense.

helenj1

not sure about the above im not sure it will effect this years payments as they may use this years lower income for this years tax credits as it sounds like your income for the year 2011/12 is going to be less than last years income.im not sure if you might have been over payed last year though maybe someone with more experience may help

zagfles

The disregard covers increases in actual income from one tax year to the next. It doesn't cover estimates. If you give an estimate lower than previous years income and it's too low then you will have an overpayment. Search this forum if you want more details we've had lots of threads about it.

liverpool34

thanks zagfiles it was an estimate for last years income at first at a total of £20000 combined for both then i got a bonus and phone to say mine would be 16500 and partners 5000 so combined 21500.in the end of tax year 2011 it come to a total of me earning 16080 and my partner 5414 so in total 21494.im not sure if they combine it or not.the run on payments for this year started with the income at 21494.but as i said i will be earning less this year

no-oneknowsme

zagfles wrote: »

The disregard covers increases in actual income from one tax year to the next. It doesn't cover estimates. If you give an estimate lower than previous years income and it's too low then you will have an overpayment. Search this forum if you want more details we've had lots of threads about it.

Zagfles - what happens if you give an estimate and then dont earn anywhere near that estimate? Would you be getting a lump sum when your renewal is done?

2009/2010 actual earnings - £15.470

due to change of circs - estimated income for 2010/2011 £16.500

Actual income for 2010/2011 £12.900

Am I right in thinking that the ACTUAL earnings for 2009/2010 would be used here? Am I due a lump sum?

Thanks.

zagfles

liverpool34 wrote: »

thanks zagfiles it was an estimate for last years income at first at a total of £20000 combined for both then i got a bonus and phone to say mine would be 16500 and partners 5000 so combined 21500.in the end of tax year 2011 it come to a total of me earning 16080 and my partner 5414 so in total 21494.im not sure if they combine it or not.the run on payments for this year started with the income at 21494.but as i said i will be earning less this year

Yes it's combined totals they use.

zagfles

no-oneknowsme wrote: »

Zagfles - what happens if you give an estimate and then dont earn anywhere near that estimate? Would you be getting a lump sum when your renewal is done?

2009/2010 actual earnings - £15.470

due to change of circs - estimated income for 2010/2011 £16.500

Actual income for 2010/2011 £12.900

Am I right in thinking that the ACTUAL earnings for 2009/2010 would be used here? Am I due a lump sum?

Thanks.

Yes you are. When you gave the estimate they'll have paid you on the 15470 income as the estimate you gave was higher but within the disregard. But because you earned less you'll be entitled to tax credits based on 12900 so you should have an underpayment of 39% of the difference ie about £1000.

no-oneknowsme

Ohhhh.....excellent...something to look forward to then .

Thanks Zagfles.

Perfumes

zagfles wrote: »

Yes you are. When you gave the estimate they'll have paid you on the 15470 income as the estimate you gave was higher but within the disregard. But because you earned less you'll be entitled to tax credits based on 12900 so you should have an underpayment of 39% of the difference ie about £1000.

Hi

Very sorry for jumping in the middle of this thread! but I couldn't help but notice after reading how similar nooneknowsme's situation is to mine with regards to the figures above..

OH receives Working Tax credits and I receive Child Tax credits for two children

Our total household income for 2009-2010 = £15204 (I was not working before October so this figure is based on my OH's income only..

However, I started new job beginning of October 2010 so my total income for 2010-2011 (Oct 2010-end March 2011) was £3067 and OH'S income was for £12985, which is lower than 2009-2010 income. Are we due extra payments?

How would the above scenario in Zagfles post work in our situ? and where does the disregard fit in ,so to speak..sorry,tax credits are so confusing!:o

Is the figure 12985 added to 3067 used as a total household income when calculating for tax credit purposes? because when I look at my past award notices the working tax and child tax credits are both worked out individually?

This is where I am totally lost so many questions :rotfl:

Can anyone help with any suggestions? Thankyou