Child Tax Credit - income change.

Princeofstrikers

Quick history first. Last year my income £7.5k, wife's income £11k, total £18.5k.
Wife was a student for part of last year and we advised at start of tax year that her income for this year would be approx £17.5k. I got a new job in Oct meaning a new income for me this year of approx £10.5k.
Tax credit office have been advised of all figures and have continually said "don't worry, this Year's figure is based on last Year's earnings". This year we receive approx £180 every 4 weeks as CTC.
BUT...wife has been granted additional hours from 10/1 - 5/4 which will mean an extra £500 per month Jan/Feb/Mar = £1500 making her income this year to be £19k. My new office have asked me to work 5 Sunday's o/t from next weekend meaning an additional £400 for me which makes my income reach £10.9k. Next year my income will be £13.5k.
Income for 11/12 was £18.5 & with the changes forthcoming, this year will reach £29.9k.
I was unaware of the £10k disregard that has been mentioned but am now concerned they will say we have been or will end up being overpaid. I have scrupulously advised them of each and every change to our working hours and circumstances. Will they now demand every penny we have been paid since 5/4/12 and, if so, how do they expect us to pay it back?
Our rent is 925 per month and we have no savings whatsoever. Worried but phoning them to advise of the changes when wife's additional hours are confirmed on Tuesday.
Sorry for the long post but help would be appreciated. Thanks.

zagfles

The overpayment will only be based on the amount over £10k, not the full amount. So of the £11.4k increase only £1.4k will reduce your tax credits this year, overpayment will be about £574. Should easily be able to save that over the next 3 months with the extra money you're earning

If you tell them now they should reduce your tax credits for the next 3 months so the overpayment won't be as big. Prepare for a big drop come April though, as next year will be initially based on your much higher earnings this year.

Princeofstrikers

Thanks - that's a bit of a relief! A system fraught with problems but which has helped our family through some very hard times since we lost our business due to the financial crisis. 10 months unemployed followed by a long time as a part-timer. Like starting completely from scratch again.My assumption is that next year we will be eligible for no assistance but it has been welcome nonetheless.
Thanks again.

Wail

I agree with Zagfles. Just keep telling them what you are doing.

Shelldean

Call and tell them of the changes.

OH was made redundant and rec'd £3500 as pay in lieu of notice as well as his redundancy money.
He's managed to get a new job on very similar money.

This means in addition to his normal money by the end of the yr he'll be £3500 over what we said he would earn, As the redundancy money is not taken into account for tax credit purposes.

I simply called them just before xmas, and they adjusted/reduced our payments until the end of Mar. All sorted already.


just wish the claim for housing benefit was being dealt with so easy!!!