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Mimi_Arc_en_ciel

Hi, Not sure if you will be able to answer this or whether I am being stupid!
Single parent, 2 kids. Working part time, kids in childcare. Currently qualify for WTC / CTC (£289.51 based on annual income of £10k)
Now – I was on Mat leave from April 2012 – Sept 2012. I estimated my earnings for Apr12 – Apr 13 as 10k. Looking at my wage slip I suspect that I will earn £9105 (Obviously I need to check in April for final figure)
HMRC have told me they will reduce my income by £100 per week on the weeks I was on mat leave. So my income will be £6905.
So I’ve over estimated my income by £3094 for this tax year. Do you know whether I should have a back payment? Usually I only over estimate by £1k (To cover for any bonus or pay rise) and get a small back pay. But with me severely over estimating unintentionally will they drag their heels?
Also – Next year I expect to earn £10k (So will give tax credits an income of £11k just to be safe) will that matter for this years claim?
Thanks!

allen35

If you can manage it may be better to leave things as they are and confirm income in April when you should receive a backdated payment.

This tends to be beneficial if you are receiving Housing benefit/Council Tax Benefit as increased tax credits will be reduced from HB/CTB award.

Mimi_Arc_en_ciel

allen35 wrote: »

If you can manage it may be better to leave things as they are and confirm income in April when you should receive a backdated payment.

This tends to be beneficial if you are receiving Housing benefit/Council Tax Benefit as increased tax credits will be reduced from HB/CTB award.

Thanks for the reply.

I do get HB and CTB - didn't think about it affecting them.

I didn't know whether there would be an issue with anything being back dated with it being a large amount I've over estimated by.