Tax credits...why are we getting more money from them now we're better off?

Plans_all_plans

We're earning 7k more than last year, but our child tax credit payments have almost doubled. Nothing else has changed about our circumstances, except for being better off.

I've spoken to someone there who says that it's all ok and not to worry, but it doesnt make any sense to me that we're getting more this year than last year, given that we're now earning more. They couldn't give me a reason why we're eligible for more this year. I don't want to be overpaid.

Can anyone shed any light on why they might be saying we can earn more and get more tax credits, as it just doesn't seem right?

Thanks.

SuziQ

What was your income like the previous year? I think they base this year's payments on last year's income, so if that was less than the year before maybe that is why?

LL30

This year's award is always based on the previous tax year. As long as you don't go over the 10K disregard, there is no overpayment, so you're fine. But remember that next year, you won't get as much (so stash it!) x