underestimated income for tax credits

livingwithinmymeans

Hi,

I've tried to work this out by myself, but I've got a bit stumped, and I can't get through to the tax credits number to ask them.

We estimated our income for tax credits for the year 2010/11, my husband lost his job during the year, and although he found employment again it didn't work out and he is now working in a lower paid job. As I really didn't want an overpayment on tax credits to worry about, we left the estimate for his income as it was, on the higher earnings.

Now having got his P60 through, we have calculated that we have underestimated our income by about £8000, we estimated £22000, but our joint income will have been £14000 (I was on maternity allowance for 6 months of the year, which Tax Credits previously told me wasn't included in their calculations). When I renew, and give our actual earnings for the year 2010/11, what will happen, will we have been underpaid, and will we get an lump sum?

To make things a little more complicated, we claimed childcare for the last 6 months, since I have been back at work, at £160 per week. Our child was 1 in January 2011, so we did receive some of the new baby element for about 8 months of the tax year.

Sorry for the long post, I just wondered if anyone would be able to help me or advise if we have a lump sum how much they think it would be?

Many thanks :-)

allen35

livingwithinmymeans wrote: »

Hi,

I've tried to work this out by myself, but I've got a bit stumped, and I can't get through to the tax credits number to ask them.

We estimated our income for tax credits for the year 2010/11, my husband lost his job during the year, and although he found employment again it didn't work out and he is now working in a lower paid job. As I really didn't want an overpayment on tax credits to worry about, we left the estimate for his income as it was, on the higher earnings.

Now having got his P60 through, we have calculated that we have underestimated our income by about £8000, we estimated £22000, but our joint income will have been £14000 (I was on maternity allowance for 6 months of the year, which Tax Credits previously told me wasn't included in their calculations). When I renew, and give our actual earnings for the year 2010/11, what will happen, will we have been underpaid, and will we get an lump sum?

To make things a little more complicated, we claimed childcare for the last 6 months, since I have been back at work, at £160 per week. Our child was 1 in January 2011, so we did receive some of the new baby element for about 8 months of the tax year.

Sorry for the long post, I just wondered if anyone would be able to help me or advise if we have a lump sum how much they think it would be?

Many thanks :-)

Only the first £100 is disregarded so you would need to recalculate.

livingwithinmymeans

Oh, Tax Credits advised me that the first £100 is disregarded when you receive Statutory Maternity Pay, but as I received Maternity Allowance, as I was not eligible for SMP that this was all disregarded. I'd best check that with them then.

no-oneknowsme

Op I had asked a question quite similar to your just the other day and the poster "Zagfles" gave me a detailed answer. Hopefully he/she will see your post and offer you some help as they are really helpful on the board.

My question to you would be , leaving aside the ESTIMATE of earnings you gave to tco , what was your ACTUAL earnings for last tax year as I believe that this isthe figure tco will work from.

If you post this up as soon as you can then hopefully you will get an answer to the question you have asked.

allen35

livingwithinmymeans wrote: »

Oh, Tax Credits advised me that the first £100 is disregarded when you receive Statutory Maternity Pay, but as I received Maternity Allowance, as I was not eligible for SMP that this was all disregarded. I'd best check that with them then.

Apologies read SMP and not Maternity Allowance yes it is all disregarded.

livingwithinmymeans

no-oneknowsme wrote: »

Op I had asked a question quite similar to your just the other day and the poster "Zagfles" gave me a detailed answer. Hopefully he/she will see your post and offer you some help as they are really helpful on the board.

My question to you would be , leaving aside the ESTIMATE of earnings you gave to tco , what was your ACTUAL earnings for last tax year as I believe that this isthe figure tco will work from.

If you post this up as soon as you can then hopefully you will get an answer to the question you have asked.

Thank you! Our actual joint earnings will be £14000 odd (just waiting for my p60, to confirm the exact amount of mine, but this will be within £s of £14000 as a joint income. We have one child, who was 1 in January 2011 and we paid £160 a week childcare for 6 months of the financial year (October 2010 - March 2011)

Magic_Sister

Surely you mean that you have OVER estimated then???

livingwithinmymeans

Magic_Sister wrote: »

Surely you mean that you have OVER estimated then???

D'oh, yes, that is what I mean - ignore my stupidity. Yes, I have overestimated my income!

(I do have a brain inside my head somewhere, honest)

no-oneknowsme

livingwithinmymeans wrote: »

Thank you! Our actual joint earnings will be £14000 odd (just waiting for my p60, to confirm the exact amount of mine, but this will be within £s of £14000 as a joint income. We have one child, who was 1 in January 2011 and we paid £160 a week childcare for 6 months of the financial year (October 2010 - March 2011)

Yes , I see what you mean but what you need to tell us is what your actual income LAST year was. The figure from LAST YEARS P60 , not this years one.

If you tell us this info then someone will be able to work out how much of a lump sum you should receive once you renew this year .

livingwithinmymeans

no-oneknowsme wrote: »

Yes , I see what you mean but what you need to tell us is what your actual income LAST year was. The figure from LAST YEARS P60 , not this years one.

If you tell us this info then someone will be able to work out how much of a lump sum you should receive once you renew this year .

so, you mean the figures on the P60 for 09/10, not 10/11?

no-oneknowsme

livingwithinmymeans wrote: »

so, you mean the figures on the P60 for 09/10, not 10/11?

yes , the 09/10 year. Sorry , im typing as im doing something else so maybe didnt explain that too well . Sorry

If you tell us what the income for 09/10 was then we can start to work out your nice little lump sum due

Im due a lump sum of approx £1k on renewal...cant wait to see thsoe forms arrive lol.