self employment no profit lost wtc....

Icequeen99

You did the right thing offsetting his losses against your income, that is allowable for tax credits.

Your 2011/2012 award should be based on 8000 income (your estimate of 18800 less 10,000 disregard).

When did you give that estimate of 18,800? And did your partner have any loss to carry forward (once he had reduced your income to nil in 10/11 he can carry forward anything left against his profit (but not your income) for 11/12).

When you say you don't get WTC, is it on your award notice but you don't actually get any payments. In part 2 i think it is, it should list out the WTC elements and show your childcare costs. Does it do that?

IQ

trufflebuggy

I told them his final figures in Jan 2012.

Got the award notice through but didn't see that the wtc payments would stop in April 2012. (there were payments up to the end of March).

There is a reference to our salary being based on £8800 on that award, for 2011-2012.

Yes there is a loss to carry forward , so have I got this right that, that loss won't carry on affecting my salary in 2011-12?

The award notice 11-12 (which is still estimated) has the childcare costs in there and has the break down of the elements etc and was paid throughout the year etc... But whereas the ctc part tells us what the payments will continue to be from April 2012 the wfc just stop after march 2012.

does this help?

thanks

Icequeen99

trufflebuggy wrote: »

I told them his final figures in Jan 2012.

Got the award notice through but didn't see that the wtc payments would stop in April 2012. (there were payments up to the end of March).

There is a reference to our salary being based on £8800 on that award, for 2011-2012.

Yes there is a loss to carry forward , so have I got this right that, that loss won't carry on affecting my salary in 2011-12?

The award notice 11-12 (which is still estimated) has the childcare costs in there and has the break down of the elements etc and was paid throughout the year etc... But whereas the ctc part tells us what the payments will continue to be from April 2012 the wfc just stop after march 2012.

does this help?

thanks

For 12/13, they will be basing your payments on an income of £18,800 (your estimated income for 11/12). At the level, you won't get WTC basic/couple/30hr but depending on how much your childcare payments are I would have thought you would get something for them. It is because your income has increased a lot and you have not got the benefit of the disregard this year (12/13)

Yes, his loss in 10/11 can be carried forward against his profit in 11/12 but not against your income. See form TC825 on the HMRC website which explains it.

if you think the 11/12 income will be less than 18,800 taking into account any carried forward loss you will need to let HMRC know so they can amend it. Of course you will need to confirm by 31st Jan 2013.

Your 12/13 payments will then be adjusted based on the new 11/12 estimate.

IQ

trufflebuggy

Thanks Icequeen, I think I have got it sorted in my head.

Your advice has been very helpful, decided not to panic too much until the new award notice comes and go from there.

I might be back