Help with advice

jonas1980

Dear forum users,

I'm writing this post as I'm confused after recent conversation I had with my work colleague about Child Tax Credit allowance.
He claims I should NOT be telling WTC about my commission payments, as they not guaranteed pay and only declare basic salary without pension contribution.

I get paid monthly plus commission if target is hit and to work out annual sum is quite difficult.

Difference this change would make is around £9K in my estimated income.

Both me and my wife work full time and total estimated income we declared was around £35K. Our 15month old son is attending nursery which we pay £186 weekly.

We currently receive a monthly child tax credit payment of just over £200. We are struggling with all the outgoings but I rather get less than build an overpayment in future.

Please advise what I should do


Thanks in advance

Jonas

Caz3121

Are they working off last years P60 income or an estimate you have given them. If working off last years you should be ok as long as your income is not more than £10k more than last years. If an estimate then you will have an overpayment if you are over £35k. Is your commission taxable and appears on your P60, in which case it should be included as income

jonas1980

Thanks Caz3121

Yes they are using an estimate, as previous year wife was on maternity leave and she is back to work from April 2011.

My commission does appear on P60, so does overtime, etc.

What's the best course of action then??

How to estimate income in my situation when job pays commission for my performance. What is the cleverest way to deal with WTC, so you don't loose too much next year.

I don't want any money I will be chased for later...