£10,000 Increase In Salary, When Do We Tell Tc?

SHEARERBOBS

Hi

My hubbys wage has gone up £10,000, not that we#re any better off because last year he earned £22,000 being self employed but only had to declare his profit of £10,500.

Anyway,when shall we tell TC's? I'm really worried it'll drop dramatically and we'll be SKINT! Currently get £540 pm and pay £552 childcare.

Any advice would be great

Hapless_2

http://www.hmrc.gov.uk/taxcredits/changeofcircumstances.htm

Your tax credits award is based on your annual income (for couples, this is your joint income). Your initial award will usually be based on your annual income for the previous tax year. But the amount of tax credits you are entitled to can change if your income changes. When you receive your award notification it will usually show the previous year's income, which we used to calculate your award.

You should tell us by telephoning the Helpline, if you:

expect your income for the current tax year to be less than your income for the previous tax year. You may be entitled to extra tax credits
or
expect your income for the current tax year to be more than your income for the previous tax year. You may be entitled to less tax credits.
Tell us about any change of circumstances as soon as possible. Failing to tell us could result in you having to pay back overpaid tax credits.

If you have a partner you must also tell us about their income even if this hasn't changed. This is because your tax credits award is based on your joint annual income.........
What do I do if my circumstances change?
The tax credits you receive depend on your family circumstances and income. If these change, your entitlement to tax credits may change and you may receive a different amount of tax credit.
There are some changes that you must tell us about. You must tell us if

You claim tax credits as a single person, and then you marry or start to live with someone as if you were married
You claim tax credits as a couple, but you stop living together or separate from your partner
You leave the UK
You lose your right to reside in the UK
You are receiving the childcare element of Working Tax Credit, and you stop paying the childcare provider you told us about on your claim form for at least 4 weeks in a row
You are receiving the childcare element of Working Tax Credit, and your average weekly childcare costs go down by more than £10 a week, for at least 4 weeks in a row
This list is not exhaustive.

If you don't tell us about a change that affects the tax credits due to you, you may not receive all the money you should, or you may get too much and have to repay some back. Any increase in your tax credits can only be backdated for up to 3 months, but any reduction in your tax credits will be backdated to the date when your circumstances changed, so it is better to tell us about changes as soon as possible.

Be aware though that change of circumstances must now be reported within 1 month not 3

SHEARERBOBS

Thanks

Will they calculate our TC's on this years salary then (£26,500) or last years?
Sorry but i'm really confused

Sarah

Hapless_2

I think it's only your initial award that is done on the previous years. tbh it's best to tell them as they will find out at your next review anyhow and they will start claiming the overpayment back next year.

Hapless_2

meant to add, they will probably take it on the new amount. you could phone them and either query it (see if you can do it without having to give details like NI number etc)

Gemmzie

I'm pretty sure with self employment you are meant to give them your before tax figures, from your Self Assessment, not your profit figures.

They'll chase you it

System

You have to declare your profit as per page 40 of http://www.hmrc.gov.uk/forms/tc600-notes.pdf

HTH

SHEARERBOBS

Gemmzie wrote: »

I'm pretty sure with self employment you are meant to give them your before tax figures, from your Self Assessment, not your profit figures.

They'll chase you it

No, it's definately your profit, OH was self employed for 13 years
Your profit is technically your income.