tax credits underpayment

micgell1985

Could someone please explain tax credits underpayment. i really don't understand tax credits but ill try give as much information i can. i applied feb last year after my son was born. im a single parent. when i applied i gave previous years income of 17450 then later actual income of 14500 due maternity leave. for this year i originally estimated at 14000 then lowered it to 1000 then when realising it was lower due to going bk to work pt i lowered to actual income of 4250. I don't really understand how it works n was scared not to keep them updated. on my award notice there's a potential payment of 1600. Would i get that when i give final figure or not till next year? also I've gave my upcoming year estimate as 14000 due to maybe increasing hours. is this ok or Will my award b based on last years income and i end up owing? Any advice greatly appreciated

Wiley

You will get any money owed for the previous year when you complete your S17 (annual declaration/renewal) form which will be with you by the end of June at the latest, on this form you provide all your exact previous year income details, they then use these figures and make sure what they paid you last year was correct, and if there was any money owed to you this will be paid to you when your claim gets finalised

micgell1985

Thank you. so as in last year do you mean 11/12 or 10/11. Its on my 11/12 awards letter that it states the potential payment. also does it always come in lump sums or is there any reason some r split thru the year? The for reply

Wiley

11/12, and it is a lump sum payment that is made for any money owed from a previous year.