Working Tax Credit Is it easy to stop

cornishgirl1

I want to stop getting working tax credit, i've only had it for 7 months. Is there any easy way to stop it.
It seems that once you have it they make it very hard to get out of it.
Any help would be good x

skibadee

Why do you want to stop recieving it?.....if you are no longer eligable for it then I guess try ringing them?

choccyface2006

http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/renew-claim/leaving.htm#1

Hope that helps.

Sarah

cornishgirl1

I'm self employed and not sure what i will be earning this year 12/13 but may be over the 18 thou for a couple. So wanted some advise on what to do ?
I know i can ring but needed to advise on what to say.

cornishgirl1

also if i leave now will i have to pay back what they have paid me from April this year ??

skibadee

Ok I see what you mean, think the thread given should be able to help you

zagfles

cornishgirl1 wrote: »

also if i leave now will i have to pay back what they have paid me from April this year ??

Possibly - tax credits work on an annual basis so if you've earned too much over the tax year you could have to pay back anything you'd had in the tax year.

BUT there is a disregard of £10,000 for income increases, ie the first £10k increase in your income is ignored, so if it's gone up less than £10k it won't matter.

Icequeen99

zagfles wrote: »

Possibly - tax credits work on an annual basis so if you've earned too much over the tax year you could have to pay back anything you'd had in the tax year.

BUT there is a disregard of £10,000 for income increases, ie the first £10k increase in your income is ignored, so if it's gone up less than £10k it won't matter.

I think in this case, income won't matter, she will owe the money back if she leaves.

The mechanism that seems to be used for people to withdraw is to not treat the renewal as a new claim. If there is no new claim for 12/13 all payments from April are overpaid irrespective of whether there is entitlement (so income doesn't matter)

If you want out without causing an overpayment then you need to tell them by before April so they don't pay you any provisional payments.

If you want out after 31 July, it won't take effect until the following 5th April.

As Zagfles says though, you are likely to be ok this year even with your increase, so you can just tell them to end your claim on 5 April 13 and not get any 13/14 payments.

Remember though if you come out of the system and your income falls you may lose out.

IQ