Working Tax Credits & Overtime

silentotter

When you apply for working tax credits should you include overtime earnings? In my current employment I have the potential to earn and extra £447 per month through overtime but it isn't guaranteed.

I am over 25 yrs old with a disability and work over 30 hrs per week. My husband doesn't have a job. My basic salary is £13060 per year which falls between the £12000 and £14000 on HM Revenue working tax credit table. How do they work out what you are entitled to if your salary falls between two bands?

I if got all the overtime my salary would be £18424 pa just over the £18000 band. Would I get the tax credit entitlement listed for someone earning £18000 or would it go to the next lever of £20000?

pipscot

silentotter wrote: »

When you apply for working tax credits should you include overtime earnings? In my current employment I have the potential to earn and extra £447 per month through overtime but it isn't guaranteed.

I am over 25 yrs old with a disability and work over 30 hrs per week. My husband doesn't have a job. My basic salary is £13060 per year which falls between the £12000 and £14000 on HM Revenue working tax credit table. How do they work out what you are entitled to if your salary falls between two bands?

I if got all the overtime my salary would be £18424 pa just over the £18000 band. Would I get the tax credit entitlement listed for someone earning £18000 or would it go to the next lever of £20000?

This will depend on your joint household income for last year since that is what tax credits are based on.

The tax credit system uses exact calculations (the bands are just there to give you a rough estimate of what you may receive) and you will be asked for your exact earnings (from P60s) for last year (2010/2011).

If you are going to earn LESS in 2011/2012 than last year then you could ask for tax credits to be based on this year's earnings instead and you will need to provide an estimate for this year's earnings. Any over or underpayment will then be sorted out during the renewal in May/June 2012.

beansy

Hi I am new to all this.

Can you please confirm which tax year my son should be entering?

He was unemployed from April 2010 to 10 Oct 2010, then started working and claiming WTC from 11 Oct 2010 to date.

When applying to renew his WTC does he enter JSA from Apr - Oct 2010 and salary from 11 Oct 2010 - 31 Mar 2011 and which year does he fill in please?

Sorry to sound really thick but never had to claim this for myself.

Many thanks.

pipscot

beansy wrote: »

Hi I am new to all this.

Can you please confirm which tax year my son should be entering?

He was unemployed from April 2010 to 10 Oct 2010, then started working and claiming WTC from 11 Oct 2010 to date.

When applying to renew his WTC does he enter JSA from Apr - Oct 2010 and salary from 11 Oct 2010 - 31 Mar 2011 and which year does he fill in please?

Sorry to sound really thick but never had to claim this for myself.

Many thanks.

If he is already receiving wtc then he will receive a renewal form sometime about now. The form asks for details of last year's earnings
(6th April 2010 to 5th April 2011) so you need to include details of both his JSA and his earnings from employment (from his P60).

The tax credits are then calcuated based on his 2010/2011 income (assuming he is single).

beansy

pipscot wrote: »

If he is already receiving wtc then he will receive a renewal form sometime about now. The form asks for details of last year's earnings
(6th April 2010 to 5th April 2011) so you need to include details of both his JSA and his earnings from employment (from his P60).

The tax credits are then calcuated based on his 2010/2011 income (assuming he is single).

Thank you.

Does he have to include HB as well as his JSA and will he be able to get his JSA £ details from the job centre?

zagfles

beansy wrote: »

Thank you.

Does he have to include HB as well as his JSA and will he be able to get his JSA £ details from the job centre?

No don't include HB.