Child tax advise. Plz confused :-((

Kellyr_2

Child tax credit advice.
Hiya new to this forum. Would like some advise on tax credits if any1 can help. I don't work as I ave a 2 yr old son. My partner is self employed. I estimated last yr 10/11 his profit would be 20k. Round about the same as yr before. I've just got tax credits letters through saying I'm getting £700 underpayment. But my partners actual income is 27k. wat will happen when I tell them the correct income. After 6th April will my payments go down. I'm confused where this underpayment as come from. An also I rely on the money I get to pay for my bills. Any advise would be very grateful. X

Caz3121

If you have given them £20k as estimated income for this tax year then there is no disregard and anything earnt over that will result in an overpayment. You may be better telling them now and getting them to amend

FBaby

It sounds like you had an underpayment for 09/10, probably due to the birth of your child? This year however, it is likely you will have an overpayment. What you don't know at the moment is how they will offset eachother. Maybe you can go on the website and check how much you would habe been getting on a £27k income.

I would inform them immediately of the change of income, wait for the underpayment to come, put it aside so it can be used to pay the overpayment. Hopefully you will have some left.