Tax Credits - Overpayment?

BODLED

Please can someone help me?

For this tax year 2012/2013 i have estimated to earn 14,200 which I am expecting to be close enough.

On renewal my husband didn,t work so his income was 0.00 he has now started work in July earning 17,000 per annum i have now notified tax credits our total potential earnings will be approx (27,000) reduced to hubby not doing a full year!

They advised me of an overpayment which i was expecting can anyone tell me by roughly how much this may be, we have 1 child no childcare costs.

Thanks bit stressed at the moment don't want a massive shock next tax year.

PS Already overpayment of approx £1200 dont expect to receive any tax credits from next year due to circumstances!

Caz3121

what was your joint income for 2011/12

BODLED

Amount for 2011/12 £16,535

Caz3121

I believe the level of overpayment will depend on whether your current award is based on previous years income or on the estimate you have given them.
On £27k with one child and no childcare costs (assuming no disability) there will be no tax credits as your income will exceed the cutoff so the overpayment may be the amount they have paid you since April.
If they are working from last years figure there is a £10k disregard so up to £26,535 would result in no overpayment
If they are working from your £14,200 then there will be

BODLED

CAZ 3121 Thank you for your help, have looked at my amended award dated 30/05 it states estimated income only as £14,200 for 2012/13

This resulted in a one off payment of £70.00 however weekly payments remained. the same as award issued 23/05 finalising income of last year £16,535

How can i tell which figures they have paid me on?

BODLED

Reading up on the £10,000 disregard i am interest if tax credits do take this into consideration if my total increase in income does not exceed this amount when renewing next year, due to hubby only earning from july 2012?

Icequeen99

BODLED wrote: »

CAZ 3121 Thank you for your help, have looked at my amended award dated 30/05 it states estimated income only as £14,200 for 2012/13

This resulted in a one off payment of £70.00 however weekly payments remained. the same as award issued 23/05 finalising income of last year £16,535

How can i tell which figures they have paid me on?

The reason your award didn't change is because your income has not fallen by more than 14,200. So they are still basing it in 16,535. This year there is a new disregard for falls in income of 2,500.

The disregard of 10,000 applies from previous year to current year. So providing your income is no more than 16,535 you shouldn't be overpaid this year.

But you should tell HMRC of your estimate so your payments are right from April 13.

IQ

BODLED

Thank you IQ have overestimated income with tax credits on Wednesday to be £31,000 based on hubby income for a full year which is incorrect (started July), expect total income to be around £25,000 when finalised next year, will I not be in the 10,000 disregard due to increase not exceeding this amount (16,535 2011/12 - 25,000 2012/2013)

Icequeen99

BODLED wrote: »

Thank you IQ have overestimated income with tax credits on Wednesday to be £31,000 based on hubby income for a full year which is incorrect (started July), expect total income to be around £25,000 when finalised next year, will I not be in the 10,000 disregard due to increase not exceeding this amount (16,535 2011/12 - 25,000 2012/2013)

You will be in the 10,000 disregard if it turns out to be 25,000. But by estimating 31,000, your tax credits will fall because that is above the tax credits disregard and so they will recalculate your award to be based on 21,000.

IQ

BODLED

Thanks IQ I was hoping by quoting 31,000 they would stop paying me I already have an overpayment of £1200 from previous awards, didn't realise they will pay me based on 21,000 would rather they used the 31,000 to stop anymore overpayments to me, we only have one child therefore dont expect tax credits from next april hence my concerns on having anymore money from them