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Tax credits help please

serendipity79
Posts: 716 Forumite


I'm looking for some advice regard CTC.
I have recently started working after being on income support.
We have informed the tax credit people of what my income will be. I started work in June.
We have received a new award for CTC but it seems really high which is worrying me.
I have called up twice to check and both times they've said its correct. They've said its based on what i will earn not not the amount of money i was getting on income support.
Today i called again and the man said because i've said i'll be earning 28k, they base it on 18k earnings as there is a 10k disregard.
This has really confused me, why not base my CTC payments on my actual earnings of 28k?
I know the tax credit calculators aren't 100% correct but they all estimates roughly the same amount but we're actually getting about £50 p/w more than the calculators say.
I'm scared that next year they'll say that we were overpaid and will want a huge amount of money back.
Will i see a big drop in my payments next year?
Sorry about all the questions but i'm really confused by it all.
Thanks
I have recently started working after being on income support.
We have informed the tax credit people of what my income will be. I started work in June.
We have received a new award for CTC but it seems really high which is worrying me.
I have called up twice to check and both times they've said its correct. They've said its based on what i will earn not not the amount of money i was getting on income support.
Today i called again and the man said because i've said i'll be earning 28k, they base it on 18k earnings as there is a 10k disregard.
This has really confused me, why not base my CTC payments on my actual earnings of 28k?
I know the tax credit calculators aren't 100% correct but they all estimates roughly the same amount but we're actually getting about £50 p/w more than the calculators say.
I'm scared that next year they'll say that we were overpaid and will want a huge amount of money back.
Will i see a big drop in my payments next year?
Sorry about all the questions but i'm really confused by it all.
Thanks
0
Comments
-
He is right, they will base it on 18k.
Next year it will be based on 28k, so you will see a large fall in payments.
Are you claiming help with childcare costs? if you are, you might be getting some WTC which is why your payments are higher than when you were getting CTC only on IS.
IQ0 -
Hi, Thank you for replying.
No i'm not claiming for any childcare costs.
It seems strange (to thicko me :rotfl: ) that they base it on 18k when i've told them i will be earning 28k.
I thought the man on the phone had got it wrong when he said it was based on 18k.
Thanks again0 -
Had this happened a couple of years ago, they would have based it on 3k as the disregard was 25,000 rather than the 10,000 it is now!!
IQ0
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