Tax Credits help pleeease... this yrs earnings less than last years

xoxlauraxox

Not sure where is best to post this up but just looking for a bit of advice.

I have done an estimate online for tax credits based on 2006-2007 earnings... the thing is I am going to be out of work this year as we are due a baby so our household income is going to drop by a definate amount... will tax credits take this into account or will they still base it on last years earnings

If they can base it on what our earnings will be this year we will recieve more or less double the amount of tax credits.... I wouldn't be so bothered but I don't know how we are going to cope if we get tax credits which are based on me working iykwim??

I have the forms filled in for last years earnings but have been told on another forum that they won't take drop in income into account unless it is a drop of over £25'000 any help would be much appriciated xx

mrsspendalot

our income dropped dramatically last year due to a loss of job from £20k down to £8k at one point, and then back up to £15k and the tax credits were adjusted each time, so they can and do adjust it when your income drops - the £25k is when your income goes up not down.

xoxlauraxox

Thanks for that :beer:

JET34

Just ring them and let them know when your income change's.

Hapless_2

yup just let them know when your earnings change