tax credit & child tax credit & smp

snowfairy84

hi everyone,
some advice needed please -
i was given tax credits for the financial year 2010 - 2011 and when this ended i was given 50 p/w based on me having earnt 13,000 for 2011 - 2012 however my income came in higher than this so i have been OVERPAID £700 luckily i got my renewal in QUICK or this could of been more.

i havent been asked to pay this back though as they say they take 2012 - 2013's income and make any necessary adjustments i.e if my income was really low they would take the 700 of my award notice - however my income will b more or less what it was for 2011 - 2012 so i have this 700 hanging over my head.

i am 13 weeks pregnant though as was wandering whether my SMP which begins in Jan will have to be included as part of my income for that year?

also when i apply for child tax credit would they be able to adjust my award and take off the £700 or is it classed as a seperate award? i'm a single mum with an income of approx 15k

thanks in advance

zagfles

SMP over £100pw is counted as income (the first £100pw is ignored).

It should be a continuing award, so they could take the overpayment off CTC but they don't take more than 25% of the amount you are due, see http://www.hmrc.gov.uk/manuals/tcmanual/TCM0232200.htm

snowfairy84

That was extremely helpful can I just ask as I'm due march 20 th & this falls within this financial year as long as I get my claim in on time they will off set my child tax credit against my working tax credit won't they ? Thanks

zagfles

You'll only get CTC from when the baby is born (not for the whole financial year). I think they'll take 25% of your total award (CTC & WTC) to pay off the overpayment till it's paid.

snowfairy84

ok so for arguments sake my baby comes 22nd march 2013 i will be paid child tax credit up to that date up to 5th april 2013 for that financial year then after that ctc for 6th april 2013 to the end of that financial year? this wont work in my favour in terms of the overpayment then as it wont b enough to cover the amount will it?

zagfles

snowfairy84 wrote: »

ok so for arguments sake my baby comes 22nd march 2013 i will be paid child tax credit up to that date up to 5th april 2013 for that financial year then after that ctc for 6th april 2013 to the end of that financial year? this wont work in my favour in terms of the overpayment then as it wont b enough to cover the amount will it?

They'll just carry it forwards to future years until either paid off or till you stop being entitled to tax credits any more (when they'll ask you pay them any outstanding amount owed).