Child tax credits question

kate.80

Hi, I hope someone can help me with this.

My husband and I currently get the basic level of child tax credits as our joint income is less than £41300. I have been at uni for the last 3 years so have not been working however I have (finally) got a job which will take us over this threshhold. This means we will no longer be entitled to any child tax credits.

When we get to the end of the year will we be required to pay back what we have already received up to now this year as overall our income for the year will be greater than £41300?

I don't know if I have explained that very well so please feel free to ask any questions.

Thanks

alfiesmum

Tell them about your change of circumstance now, and they will send you a revised award notice. If they've already paid you the entire amount you'll now be entitled to this year, your payments will stop. Any monies that has to be paid back, will be worked out after the end of this tax year. i.e April 2012. And they'll be in touch after that time to arrange repayment.

kate.80

They have already paid us 5 months of payments that we were entitled to.

Does this mean I have to repay these payments when they calculate our actual income next April as my wages for the next 7 months will take us over the threshhold?

It doesn't seem fair that I could be be made to repay payments I was entitled to (and in need of) at the time, just because I got a job later on in the year.

LL30

Does the £10K disregard not count in these circumstances? Or is it that once you're over the threshold then that's it? Not sure whether that'll be of any help to you, depends on how much more you will be earning this year x

kate.80

Sorry I don't know what the 10K disregard is. We will be only just over the threshhold by a few hundred pounds.

LL30

Basically, if you're going on an actual income figure from last year (ie not an estimate) and you don't go £10K over that figure, you're fine. If you go £10K and a penny over, then there's an overpayment...that's my understanding of the rule anyway x

kate.80

Ah I didn't know that. Thanks for the info.

I done the rough sums and I think we may go slightly over the 10K but at least I'll be prepared for it if we have to pay it back.

sheilavw

We get £10.45 child tax credit for our Daughter.She is off to uni this weekend, she is 18 (19 next march) Just had bank statement and a payment went in on 2nd sep (I get it weekly) I just assumed it would stop at end of August? Someone else said at 19? Any ideas anyone?

JC9297

sheilavw wrote: »

We get £10.45 child tax credit for our Daughter.She is off to uni this weekend, she is 18 (19 next march) Just had bank statement and a payment went in on 2nd sep (I get it weekly) I just assumed it would stop at end of August? Someone else said at 19? Any ideas anyone?

Presumably that was the final payment up to the end of August paid in arrears. If your child is still at school at the age of 19 you can still get CB and CTC for them, but otherwise they stop at the end of August.

zagfles

kate.80 wrote: »

Ah I didn't know that. Thanks for the info.

I done the rough sums and I think we may go slightly over the 10K but at least I'll be prepared for it if we have to pay it back.

If you earned under £40k last tax year and earn under £50k this tax year, you're entitled to the family element (£545) in full this year.

Give them an estimate, and if the above applies you'll still get tax credits this year but they'll stop in April. If you don't give them an estimate you might carry on getting paid after April and have to pay it back.