tax credit and self employment

chazle

Hi I hope someone can answer my quick question

My partner was self employed for the last two years but has closed the business mid august this year.
I phoned TC last week to tell them he is no longer working and they said they will send a new award

Does this mean our payments will be recalculated? We are struggling (have been for a while as there was no work for him hence dissolving the business) or will they just stay the same till we give his exact profit for last year?

Our current award for this year has been worked out on my income plus an estimate of his earnings as last years accounts have not been done yet.

Hammyman

Yes your payments will be recalculate but if he wasn't earning a profit, they'll remain the same unless you drop below 30hrs.

wannabedebtfree_2

If you gave an estimate of his earnings and the actual figures are a lot less then you might find yourself in the same position as me.

Even though I told them when I renewed that our circumstances were changing in August, when I phoned to confirm the changes and change the estimate for this year's income, they have actually decreased out weekly payment by around £7 and are holding a further £800+ until April when I renew next year.

I've told them we need the money now, but because it was a substantial drop they said they can't release the extra tax credits we are eligible for until the 11/12 year's figures are confirmed....:eek: