Tax credits - change in circumstances

gmdh555

Trying to work out what tax credits my ex will be entitled to once the divorce is final. At present she still receives an income from my own company (small salary plus dividends). After the divorce she will only have her own low salary from a part-time job. There are 3 kids and she should be entitled to claim a decent level of tax credits based on her income. But I am beng told this is calculated on the last tax year's income, which at the moment is sufficient to dismiss any entitlement.

I believe a change in circumstances, e.g. drop in income, can be notified to get your tax credits increased within the current year? Is this likely to apply to the scenario where a significant dividend income is there one year and gone the next?

Thanks in advance for any advice.

Cornish_piskie

Hi OP - sorry to hear of your separation but good on you for helping sort out the finances

Your ex will just need to ring the Tax Credits Helpline with the new information ie: that she is now a single claimant, details of any childcare to be paid and what she is expecting as a salary this year. Do try to be as accurate as possible with the estimated income to avoid any over or underpayments. She will likely to be told a fairly good estimate of what she might receive in CTC and WTC by the advisor (though not all provide this information and ask you to wait for the written award). You need to make sure that the Child Benefit payments are in your ex-wife's name if they aren't already as this is all tied in (but paid separately).

Best wishes

Darlyd

A friend of mine has just split up with her DH. They closed their joint claim and opened a single claim for her and her children. They already had her estimate on what SHE earned (alone) last year plus estimate on what she will earn this year.

If she gives them a ring, they can do this all over the phone, took my friend 2 weeks for her money, which was backdated from when DH left.