Tax Credits (Self Employed) Please Help

ironman1

It is hard to give a decent estimation though as I don't know what my expenses will be. Do they check that and how?

ironman1

Bump, sorry

zagfles

They are unlikely to check your estimate, but like bestpud said you will have an overpayment if it's too low. It's up to you how you do it, either

1) play safe and give a high estimate - in which case you'll get less in-year and a refund at the next renewal, or
2) give your best estimate and if your expenses turn out to be less than anticipated (so higher profit) put some of the extra aside to pay back the overpayment.

ironman1

Thanks, I did what I was advised to do on here and phoned them a few days after posting the form off, but the recorded message says you have to wait eight weeks before they can look into it!

It's difficult being self employed and giving estimates. I mean I've done a bit of overtime recently that gave me a few extra hundred (all through the books!) but then I'll end up having a couple of weeks off over Christmas to cancel it out. Just hope my estimate won't be too low. It didn't even give the option to give one anyway, just asked what I've earnt so far this year. Strange way of doing things

zagfles

ironman1 wrote: »

Thanks, I did what I was advised to do on here and phoned them a few days after posting the form off, but the recorded message says you have to wait eight weeks before they can look into it!

It's difficult being self employed and giving estimates. I mean I've done a bit of overtime recently that gave me a few extra hundred (all through the books!) but then I'll end up having a couple of weeks off over Christmas to cancel it out. Just hope my estimate won't be too low. It didn't even give the option to give one anyway, just asked what I've earnt so far this year. Strange way of doing things

You don't have to wait till they process the renewal before giving an estimate for this year. The recorded message is probably aimed at those chasing their renewal - but you can get tax credits for this year based on a estimate before they do the renewal.

ironman1

Just had a bank credit, of £81.20, which I presume is from Tax cred, not sure how far that is backdated. They would have probably received our forms about a week ago.

Not sure what that means, maybe we get £81.20 a month?