tax credit question

rnknwad

I currently get tax credits worked out on my annual income,any overtime I've done in the past I've taken as toil,am I right in thinking that the more I earn/hours I work I'll get less tax credits ?? Hence if I were to work overtime for pay I would lose some tax credits??
Thanx for any advice..

Vejovis

:silenced::silenced:

Cherry_Bomb

If you over-estimated your income when you did your annual review then no you won't end up with 'less TC' as you would have been getting slightly less throughout the year than what you were entitled to.

If you gave an exact income and it turns out you've actually earned more (eg through overtime) than what you told them you would, then you may end up with an overpayment and yes you will have to pay that back.

It's not reviewed on a month by month basis. Can you imagine what a nightmare that would be???

shedboy94

rnknwad wrote: »

I currently get tax credits worked out on my annual income,any overtime I've done in the past I've taken as toil,am I right in thinking that the more I earn/hours I work I'll get less tax credits ?? Hence if I were to work overtime for pay I would lose some tax credits??
Thanx for any advice..

Are you actually being serious??? Will I get less benefits if I earn more.......yes.

microfilm1

why do you think its so strange that you get less tax credits
the more overtime you do.

Dognobs

I thought it depended on the amout of overtine is there not a threshold? like you earn between 14k - 15k and you get the same amount? otherwise loads of people would be under/over paid!!

microfilm1

Go on the direct.gov website and look for the section how income can affect tax credit payments.

rnknwad

thanx,just as i thought,it was people at work telling me i could work/earn more overtime and wouldn't lose any tax credits!! they'll tell me anything to get me to work extra hours !!!

zagfles

rnknwad wrote: »

thanx,just as i thought,it was people at work telling me i could work/earn more overtime and wouldn't lose any tax credits!! they'll tell me anything to get me to work extra hours !!!

You probably won't lose any this year, because there's a £10k disregard for income increases, which means your income can go up by up to £10k over last year's and your tax credits won't be reduced.

But next year your tax credits will (initially at least) be based on this year's income, so they'll likely be lower next year.