about the entitled to (calculator and the 25k disregard )

kerryallc71

when working out what tax credits you maybe able to get this year , what income do you put in the entitledto calculator , lasts years wage/income figure .

you see my husband changed jobs in jan 2007 , and in his last employment he payed into a pension which was not deducted from his p60 final tax year figure. we are not still sure what his new wages are going to be for 2007/2008 i think it will be more than the wages he was earning at his last employment. my husband has been there just over 3 months now. we did inform tax credits about his new job back when he started in january , also i claim carers allowance.

i know next year that the income figure we do give to tax credits - 2007/2008 will be higher but not £25'000.00 more than this years figure. this year 2006/2007 income figure is £837.86 more than last years last years figure which was £19'063.00 inc my carers allowance and my husbands pensions contributions which we had to deduct from his p60 figure because his work never deducted them.

also my other question is do we give them an estimate of his new wage even though we are not sure what his new wages will be this time next year. also my husband will be paying into a new pension scheme in a few months time.

i know my husbands new wages will be higher but not sure by how much , i know his new wages wont be more than £25'000.00 above this year income figure , which is £19'900.86 .

hope you can understand my message .

thankyou from kerry..

isasmurf

Tax Credits are never based on wages, but the income received between 6th April and 5th April the following year.

The income your tax credit will be based on the following criteria:

1. If this year's income is less than last year's income then your award will be based on this year's income.

2. If this year's income is less then £25,000 higher then last year's income then your award will be based on last year's income.

3. If this year's income is more then £25,000 higher then last year's income then your award will be based on this year's income minus £25,000.

where last years income is your total income between 6th April 2006 and 5th April 2007, and this year's income is total income between 6th April 2007 and 5th April 2008.