how will my entitlement be assessed?

snowfairy84

i currently owe £700 for an overpayment of working tax credit but havent paid this as tax office advised me that they would wait to see what my earnings would be when i renew at the end of this financial year - they will be about the same but i have two change of circumstances -

- i start smp on 15th feb
- my baby is due 20th march

obviously i know u deduct a certain amount of your earnings when your on smp but i still think my income for last tax year will be 14,000. so for the last financial year which i declare end of march i will have no working tax credit owed and still owe the £700. does anyone know if i will be entitled to any child tax credits as my child will probably fall within this tax year?

also, for the financial year that starts after this april i will be taking a massive paycut - my earnings will be £7000 maybe less due to smp - is this taken into account when my award is assessed for working tax or child tax credit or do they just based it on the 14k i will have earnt in this financial year?

confused

allen35

Depending on other income in the household you may still be entitled to WTC & CTC.

Are you single, have other children??

You can give an estimate of next years income and HMRC will use this in the calculation, there is a £2500 disregard so for example, if you earnt £14000 12/13 and estimated income for 13/14 is £7000, the award would be based on £9500.

Remeber to record dates of SMP as you said an amount is disregarded as income (£100pw)

If you give further details of your current circ's in the household you will get a more accurate response.

snowfairy84

i am a single parent and this is my first child