Over/under estimating earnings- Tax Credits

ironman1

Due to it being our first year of claiming Tax Credits, as mentioned by myself on here quite often, I'm still confused about how they actually work. Mainly as i'm self employed but currently working for a firm.

When asked to predict my earnings I didnt realise I.d get overtime.

Due to this I think I may end up earning about 2/3k more than expected. Is this a major differnce as to what we would receive from Tc's? Ie will this change the £59pw we receive dramatically?

I've phoned them to tell them this but they said to contact them again nearer April. But I'm worried we'll owe them alot.

For all I know the extra 2/3k i'll probably earn may mean we should receive say £35pw instead of 59pw from Tax Creds. Hope this makes some sort of sense!

ironman1

Boooooooing

NotSuchASmugMarriedNow

Any over payments you have made will simply be adjusted in the next years tax credit award, it's nothing to worry about.

MrsBartolozzi

This year's tax credits are based on what you earned Last Year, so unless you earn £10k more than last year there should not be any changes to your weekly amount. The extra pay might affect next year's tax credits though, but that will get sorted next tax year so relax.
If you remind them again of your change in income towards the end of this tax year hopefully they will adjust your 2012 payments so you don't end up with an overpayment, but it will all get sorted anyway when you renew and tell them the exact figures for this year.

ironman1

I'm sure when we applied in May we had to put this years predicted earnings too? The thing is I have changed jobs completely this year. Now self employed in the building trade.

We also said my oh would return to work in jan to April but i dont think she is now. All so confusing. Thanks for the replies