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Tax Credit Calculation

How are tax credits calculated? Is it your previous years income or this years?

So say in 10/11 you earned £9k as you only started your job a few months into the tax year.

But in 11/12 you're on course to earn £12k. Are you tax credit calculations based on what you earned last year or this?

As the form asks you for your last years earnings and doesn't seem to want to know this years.

Comments

  • LL30
    LL30 Posts: 729 Forumite
    Last years. There is a 10K disregard, so as long as you don't earn over 10K more than last year, you won't have to pay any monies back :)
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