Tax Credits

ironman1

Hello,

I know the tax year ends in a few days, so when do we apply for next years credits and how does the process work?

I know for a fact next year I will earn less than this year. I have just put in my profits on the HMRC calculator with a household income of £16,000 and it says we will receive about £40 a week.

This worries me as we have been getting £59.50pw from last May to now. Does this mean we will have to pay some back?

My gf is off work until September looking after our son as childcare costs are so expensive. It is tough as I am self employed, a builder and don't earn a great deal. My profits this year will come to around £18,000 but my rates will be lower from next month due to the competition.

We are struggling a bit as it is as we have a half mortgage/half rent and living in London our bills are very expensive.

I'm not complaining as I know others are worse off but I am worried that-

1. We will have to pay money back for the year 2011/12
2. Next year (well from May) we will be receiving less than the previous year

We are obviously new to this tax credits benefit. I can't wait until my oh returns to work to be honest as my earnings just about pay the bills and believe me we don't overspend on anything more or less due to the great advice given on this website.

Hopefully I haven't offended anyone who is struggling with money I am just a 25 year old trying to support a family on a fairly low wage and to be honest feel a bit down at the moment.

The last thing we need is the tc's going down or us owing money back.

Thanks for reading

Murgatroyd21

For 2012/13 you should get about £60pw. It would have been more due to the reduced income in 2012/13 than previous year, but you are affected by the £2500 disregard which means it will be counted same as this years income of £18k

ironman1

Oh right thanks for the reply. Now I have to work out my actual profit for when they ask for my earnings. Is it a case of getting an accountant to sort it all out or do I personally give them the figure. Or do I send them my receipts like travel expenses?

ironman1

Anyone know this info please? Also when we done our estimation we said my oh would probably return to work for a couple of months in January this year. It turned out she didnt because her old company wouldn't give her part time hours. Will this affect our credits? Thanks

ironman1

Anyone know this info please? Also when we done our estimation we said my oh would probably return to work for a couple of months in January this year. It turned out she didnt because her old company wouldn't give her part time hours. Will this affect our credits? Thanks .

ironman1

Wow this has gone down the pages!

Murgatroyd21

It's up to you whether to use an accountant, depends how complex your details are I imagine.

When you get the renewal/declaration pack, as long as you provide an estimate by end of July you will have until 31st January next year to finalise if necessary.

Your award for last year will depend on the actual figures you finalise on. If you have given an estimate that turns out to be too high, you will get any unpaid entitlement made to you when the previous claim is finalised. The longer you take to give actual figures, the longer it takes to finalise.

ironman1

Being self employed I am not sure what they count as 'profit'. I mean for example some months I may get £1500 after tax, but my costs like tools, travel and other expenses could take that down to about £1000. How do I finalise it and how do I prove what I earn?