Tax rebate affect housing benefit??

Rachel2011

At the moment I'm on maternity leave and unsure what my income for this year will be. If my estimate is higher than my actual income do I get difference back from tax credits and will this affect my housing benefit? Will I need to pay it all back? Never claimed anything before and bit lost with it all. Thanks

allen35

HMRC will base your 2011/12 tax credit award on your declared income from 2010/11 tax year.

When declaring income have a calendar and work out how many weeks you were on SMP throughout the tax year as you can deduct £100 for every week you were receiving it from your total income.

If you feel this years income is going to be lower than last year you can request your award be based on an estimate. Be aware though if you under estimate you may be overpaid and it will affect next years claim.

Macro_3

Any arrears of tax credits thatyou receive will not be taken into account for HB/CTB purposes as income - they should be used as capital. So they may affect your entitlement from when you receive them if they cause your capital to increase above the £6000 threshold, but will otherwise have no effect.