Tax Credit

samblack

Hi,
All this tax credits information has overloaded my brain and now I'm getting confused by the most simple things to do with it! Can someone tell me if someone earnt around £15k last year but this year is on a lower paid job so will only be earning around £11.5 - £12k and they have savings of around £800 would they be entitled to tax credit? When I put the information in the questionnaire on direct.gov it said the payment would be £0 but I saw a table on the direct.gov website that implied people earning £12k would get it....
Thanks

Murgatroyd21

There's a £2500 disregard applied when reducing income as of 6th April. In effect, if you earned £15k last year and entered £11.5k, the system counts the income for this year as if it was £13.5, so there won't be any entitlement this year. It will use the £11.5k figure as the basis for an award for next year though.