How are tax credits worked out???

3littlegirlies

Hi all

I am just wondering if anyone actually knows which figures tax credits work on?? I have recently completed my renewal and had an underpayment paid to me (which is very much appreciated!) and I have given them my estimated figures for next year but it doesnt seem to be that straight forward!lol

My estimated figures for 11/12 was £19k but the actual figure was £12,500 (hense the underpayment) I have told them that my estaimated income for 12/13 is £29000 (we have bought a couple of properties which we should start to see an income from) so I thought that this year's award would be quite a lot less as the income has jumped up but no, Its the same as last year?! Does anyone know how it is worked out? (btw my income for 10/11 was £19000 and we have 3 children)

Thanks in advance of anyone actually being able to understand the system!!lol :T

Icequeen99

3littlegirlies wrote: »

Hi all

I am just wondering if anyone actually knows which figures tax credits work on?? I have recently completed my renewal and had an underpayment paid to me (which is very much appreciated!) and I have given them my estimated figures for next year but it doesnt seem to be that straight forward!lol

My estimated figures for 11/12 was £19k but the actual figure was £12,500 (hense the underpayment) I have told them that my estaimated income for 12/13 is £29000 (we have bought a couple of properties which we should start to see an income from) so I thought that this year's award would be quite a lot less as the income has jumped up but no, Its the same as last year?! Does anyone know how it is worked out? (btw my income for 10/11 was £19000 and we have 3 children)

Thanks in advance of anyone actually being able to understand the system!!lol :T

Your 11/12 award would have been finalised on 12,500 (which is why got the overpayment. Your 1213 will be based on 19,000 (29,000 less disregard of 10,000) as you are are allowed a rise of up to 10,000 as compared to the previous year before it counts for tax credits.

That's why you have seen no change, you estimated 19k last year and they are using 19k this year (but for different reasons).

13/14 will be based on 29,000, unless your 13/14 income is expected to be much lower.

In terms of renting the property out, remember it is only the profit as declared for tax that will count for tax credits.

IQ

3littlegirlies

Hi Icequeen,

Thank you for explaining that, its a funny old system to work out isnt it?!lol

Thanks again :beer:

shedboy94

3littlegirlies wrote: »

Hi all

I am just wondering if anyone actually knows which figures tax credits work on?? I have recently completed my renewal and had an underpayment paid to me (which is very much appreciated!) and I have given them my estimated figures for next year but it doesnt seem to be that straight forward!lol

My estimated figures for 11/12 was £19k but the actual figure was £12,500 (hense the underpayment) I have told them that my estaimated income for 12/13 is £29000 (we have bought a couple of properties which we should start to see an income from) so I thought that this year's award would be quite a lot less as the income has jumped up but no, Its the same as last year?! Does anyone know how it is worked out? (btw my income for 10/11 was £19000 and we have 3 children)

Thanks in advance of anyone actually being able to understand the system!!lol :T

Was there any other income apart from the £12500?

Mimi_Arc_en_ciel

personally - i think they just pick figures from a hat..... but then, i have been waiting for 3 months for them to sort out my renewal as they owe me some pennies .... funny though, if it was the other way around and i owed them money i bet it would have been sorted a lot sooner.... :-)