Losing tax credits?

louisehj

Hi All,

My husband has had a pay increase and our combined wage will now be 43990. Just wondered if this would lose us our tax credits? We get £42 pm currently.

Thanks
Louise

Mrs_Arcanum

Would be interested in the answer as our circumstances are similar (overtime rather than a pay rise though).

louisehj

Me too! We could go over this anyway with husbands overtime too.

pipscot

louisehj wrote: »

Hi All,

My husband has had a pay increase and our combined wage will now be 43990. Just wondered if this would lose us our tax credits? We get £42 pm currently.

Thanks
Louise

Depends on how many children you have and what you childcare costs are.

An estimation can be done on https://www.entitledto.co.uk to see how it will affect you.

louisehj

doh, just 2 and no childcare costs. no under 1's. will take a look.

louisehj

is 45000 as a joint income now the cut off though?

pipscot

louisehj wrote: »

is 45000 as a joint income now the cut off though?

there isn't a set "cut off" - it depends on the number of children you have and how much your childcare comes to

louisehj

According to entitled to we wont received tax credits anymore. Is it worth ringing them now? Hubbys new wage only started 1st may, paid end of may. Or wait for his p60? No renewal pack received yet

pipscot

louisehj wrote: »

According to entitled to we wont received tax credits anymore. Is it worth ringing them now? Hubbys new wage only started 1st may, paid end of may. Or wait for his p60? No renewal pack received yet

Don't forget that tax credits are based on last year's income - so you should put your incomes for 2010/2011 into the calculator not this year's income.

An increase of more than £10,000 between 2010/2011 and 2011/2012 would affect you child tax credits.

When you get your renewal pack, you just ring up and give them the figure for last year from P60s.

louisehj

Last few years Ive given estimated figures cos of mat pay etc for myself. This last time I gave my annual wage and my p60 is 5grand over due to overtime. Hubbys wage prob 1 grand over so comes in at 40 grand for last year. Ill not be doing overtime anymore though. :-)

pipscot

louisehj wrote: »

Last few years Ive given estimated figures cos of mat pay etc for myself. This last time I gave my annual wage and my p60 is 5grand over due to overtime. Hubbys wage prob 1 grand over so comes in at 40 grand for last year. Ill not be doing overtime anymore though. :-)

You really need actual figures from P60s (i.e. including your overtime) rather than estimates to make sure your entitlement is correct. If you look at last year's award notice you will see the figures that they think you are earning per year.

If your actual (P60) earnings for last year were £40K then that is what they will base this year's award on.