Working tax credit question

spp_2

Hi all,

Currently I am self employed, and receive working tax credits. Next month I will be starting full time employment and working on my business part time, and will no longer require tax credits so will be getting them stopped. My question is, will I have to pay back any of the tax credits received in the last 6 months because of the fact that over the tax year 2011/2012 I'll have been working for the final 6 months of the year (Nov 2011 - Apr 2012)?

In the last sixth months the business has made a loss, albeit not a large one, and so tax credits were vital.

spp_2

Bump, anyone?

LL30

There is a 10K disregard, if you aren't going to earn more than 10K more than last year between now and the end of the tax year then leave your claim to run. Even if you do earn 10K more, you will only have an overpayment on anything above the 10K.

zagfles

Tax credits work on an annual basis so it's your income over the full tax year which counts. If you earn a vast amount in the next 6 months them yes you will need to pay back the tax credits you've received for the first part of the year, even if you were on a low income then.

But as said there's a £10k disregard for income increases so you could well still be entitled this year.