new job, term time only, tax credits, confused!

bumpybecky

I've just got a new job :j:j it's part time, term time only and will mean I need to get some extra child care for my youngest

I want to make sure I declare everything properly to the TC people as I live in fear of another overpayment :eek:

The thing is though, wages and childcare aren't going to be regular until next tax year. We've already changed DH's income once this year, so think the income disregard rules don't count.

So is it best to make as good an estimate as possible for wages and childcare and then declare a slightly higher amount for wages and a slightly lower amount for childcare now. The at the end of the year declare the correct figures?

I'm not trying to con the TC out of more money - I'd prefer they paid me less and corrected it at the end of the year. I'm just really worried about getting an overpayment that needs to be paid back.

thanks for reading - hope it makes some sense!

Hammyman

Yes, the estimation is the way to go. When it comes to renewal in June there is a part of the renewal process where you confirm the previous years figures. You are far enough into the current financial year that any overpayment isn't likely to be huge.

teagan1966

hi
i work in a school term time only , we get paid 12 mths of the year they just take a small amount off your weekly income may be the same for u

zagfles

The disregard applies to actual changes in income from one year to the next, not estimates, so you don't lose the disregard no matter how many estimates you give. You just need to realise what the disregard applies to.

For instance if last year's income was £20k then the disregard (of £10k) applies to increases above £20k, nothing else. If you give an estimate of £18k then there will be an overpayment if you earn any more than £18k. If you give an estimate of £25k, or £29k, or anything between £20k and £30k, then they'll pay you based on £20k (because of the disregard), and you can earn up to £30k without having an overpayment.

kris1893

Just to add: giving a higher estimate of income is a good idea, but giving lower childcare costs than your actual costs is a false economy as any increase to your reported childcare costs can only be backdated for a maximum of 3 months (1 month from April 2012). Income is different, as this can be backdated fully upon a completed renewal being done.

moneybuster

my wife works term time only, but often works more hours to cover for sick staff or no dinner ladies on a wet day so we gave the tax credit her yearly wage and i explained the situation, the women said they are used to this with schools and every day will be different, she said it one of the few jobs where we expect this thing to happen.

MB

bumpybecky

zagfles wrote: »

The disregard applies to actual changes in income from one year to the next, not estimates, so you don't lose the disregard no matter how many estimates you give. You just need to realise what the disregard applies to.

For instance if last year's income was £20k then the disregard (of £10k) applies to increases above £20k, nothing else. If you give an estimate of £18k then there will be an overpayment if you earn any more than £18k. If you give an estimate of £25k, or £29k, or anything between £20k and £30k, then they'll pay you based on £20k (because of the disregard), and you can earn up to £30k without having an overpayment.

we will have an overpayment then as the estimate for this year is already a lot lower than last year's actual income, which is as overpayment to deal with but as higher income!

kris1893 wrote: »

Just to add: giving a higher estimate of income is a good idea, but giving lower childcare costs than your actual costs is a false economy as any increase to your reported childcare costs can only be backdated for a maximum of 3 months (1 month from April 2012). Income is different, as this can be backdated fully upon a completed renewal being done.

that's confusing! will have to make sure we give the childcare costs as accurately as possible then. Do I give the term time weekly cost averaged over all the weeks (so less as there are holidays)? want to make sure I do it right!