Disregard??

beth111

Please can you help??

I don't seem to get the disregard rules for wtc and ctc.

Last years joint income for 10/11 was £14000 but this years 11/12 will be between £24K and £26k
will this effect the payments I am getting now?? does the disregard apply to our situation?

I'm getting all confused :think::think::think::think:

Icequeen99

beth111 wrote: »

Please can you help??

I don't seem to get the disregard rules for wtc and ctc.

Last years joint income for 10/11 was £14000 but this years 11/12 will be between £24K and £26k
will this effect the payments I am getting now?? does the disregard apply to our situation?

I'm getting all confused :think::think::think::think:

It might affect your payments now, depending on the figure.

If your final income for 11/12 is £24k then there will be no impact on your tax credits this year because they will still be based on 10/11 income of £14,000. This is because you are allowed an increase of up to £10,000 before it impacts on tax credits.

If your final income for 11/12 is 26k, your tax credits for 11/12 will be based on £16,000. That is 26,000 minus the £10,000 disregard. This would affect your current payments because you are probably being paid on last year's income of £14,000 so you need to tell them otherwise you will be overpaid if you later declare 26,000.

Also your 12/13 claim will be based on your actual 11/12 income of either 24,000 or 26,000. So you will see a large drop from April 2012.

IQ

beth111

Thanks IQ
Would it me better to tell them now or when we renew?

HappyMJ

beth111 wrote: »

Thanks IQ
Would it me better to tell them now or when we renew?

If you tell them now your payments will go down by £0-£15 per week. If you wait to tell them you would have been overpaid and would need to repay it all at once. If your income drops you can ring them again and they will go up.

beth111

Thank you Happy, I will get on to them tomorrow. Thanks again.