Tax Credits Renewal help urgently needed please....getting in a right old state

Alfiesmummy_2

Could someone please help as Im getting myself into a bit of a state re tax credits?
I claimed for 11/12 with an estimated income of £8500. I have one son and work 35 hrs a week. I was awarded £135 a week. I am about to do my renewal and have actually earnt 16239 after taking of the £100 a week for maternity pay. Im really worried about the impact of an overpayment.
Can anyone tell me what the overpayment would be....what my payments will reduce to etc please? Next problem is that I will again be on maternity leave within this tax year starting 30th Aug so am not sure what to do with regards to this year so any advice welcomed.

DaisyFlower

If you are expecting again so soon shouldnt you be including your partners income as well?

carebear13

there will be quite a big overpayment- you earnt double your estimate, why on earth didnt you let them know, surely you must've realised that you were earning a lot more.
according to the calculators and just going on the info you have given you should only get £70 a week roughly. with 2 children, again based on info you give you will be entitled to £126 a week roughly, take off the approx £70 a week overpayment abd that will give you an idea of entitlement,
obviously these are all estimates.
personally if it was me i would get on the straight away as the more they overpay into this year the more you will have to pay back.

Alfiesmummy_2

Thankyou for your replies.
Just to clear up a couple of questions: firstly there is no partner income and as for the delay yep stupid but I have been ill since having my son.....I went back to work on a phased return 3 days for a while then building back up to 5. There was lots of messing around by the company with regards to my contract and pay etc and upon advise was told to wait until I knew for sure what would happen......and.not.to worry because of the income disregard thing and that I should be able to.come.to some.sort of arrangement to pay it back rather than loose t.c.

carebear13

i think the arrangement they were referring to is that they will reduce your award each month rather than just stop it completley or ask you to pay it all back in one go. the thing with the disregard is that it only applies to current awards, when you do your next one, you will have quite a big repayment. i would do an estimate of income and perhaps add a little bit on just in case, at least whilst you are mat pay you know exactly what your income will be, and get on the phone now.

zagfles

What was your income in 2010/11?

Alfiesmummy_2

Hi Zagfles......I never claimed anything in 10/11 and the figure used for 11/12 was an estimated figure based on what was supposed to be happening in that year due to there being a big diffetence expected from.the week.before.

Alfiesmummy_2

Sorry year not week lol

zagfles

Alfiesmummy wrote: »

Hi Zagfles......I never claimed anything in 10/11 and the figure used for 11/12 was an estimated figure based on what was supposed to be happening in that year due to there being a big diffetence expected from.the week.before.

It doesn't matter. Your 2010/11 income is relevant to your 2011/12 claim, you will have had to declare it when you claimed, and nobody can answer your question about whether you have an overpayment or not without knowing your 2010/11 income.

Alfiesmummy_2

Oh :-( well looks like im.pretty stuffed then as i cant remember what it was. All i remember was that the adviser told.me.to.do esrimate on 1/12 due to a big difference. I cant find my P60 or final payslip for.that year either. Based on the fact my.income.would.have been higher what would.that mean?

zagfles

If your 2010/11 income was over £8500 then you will have an overpayment. How much depends on the exact income. For instance if it was £9000, the overpayment will be about £205, if it was £16,000 the overpayment will be about £3075. Basically 41% of the difference between your estimate and 2010/11 income (capped at your 2011/12 actual). Max overpayment would be £3173, that's if your 2010/11 was over £16239.

If your 2010/11 was £8500 or lower you won't have an overpayment for 2011/12, but you probably will for any payments after April.

Reason is there is a disregard for income increases of £10k but this only applies to increases in actual income from one tax year to the next, not to increases over estimates (otherwise everyone would just give a low estimate to get more tax credits!)