Do tax credits pay in advance or in arrears ?

ladybelle

I know you are supposed to inform HMRC when the hours change has happened - but in my case I'm going from 28 hours to full time on the 29th April.
I'm due a payment the previous Friday 26th April.
Does anyone know if this is for the previous month I've just worked at 28 hours or for the upcoming month ? as if it's for the month ahead ? it might be an overpayment so I'd have to pay it back ?
When should I ring the tax office ? I do not want to risk an overpayment but my full time hours wont start until end May (I mean when I get the first months' full salary) - so I cant manage for a month without the working tax ?

Horseunderwater

If this will be a permanent change - you can keep what you think you might owe to one side for the minute - until you do your annual renewal between now and 31st July. There is an income rise desregard so there may not be an overpayment. Once you have the new award for this tax year and you have checked it, see what is says re money owed and if new income recorded correctly. If not ring and inform them again at this point.

consumers_revenge

I was told when I rang earlier in the week when I said I had a change for may 1st to ring back 7 days before. I told them I would get a payment and I didnt want to be in a position I had to find the money later. They told me it will run for another 4 weeks, so I believe you run a month late.

HTH

Horseunderwater

consumers_revenge wrote: »

I was told when I rang earlier in the week when I said I had a change for may 1st to ring back 7 days before. I told them I would get a payment and I didnt want to be in a position I had to find the money later. They told me it will run for another 4 weeks, so I believe you run a month late.

HTH

WTC's do not run "late". They end when you ask them to. Everyone gets what is called a 4 week run on and it done so you are not worse off with things like extra travel costs etc. Ours ended in Sept last year but we were paid for another 4 weeks till end of October.

embob74

I was told that they can't process a change in circumstance until it has actually happened so you may be best waiting anyway.

consumers_revenge

Horse...run late is another term for arrears.... :-)

Horseunderwater

Not by my definition it isn't - to run something late just means that instead of processing somehing at 9am it is processed later same day. Another example is running an athletic event with a later start.
Arrears means money owed from an earlier time such as a back payment of your benefit due to you finally being awarded the correct amount or when you pay off mortgage payments or rent owing from another payment due period. And if you do not understand that, then there is not much hope is there. And as I said HMRC do not pay tax credits in arrears - they tell you the dates the payments are due and 99% of the time it gets paid on that day. However other benefits are paid in Arrears, but still normally on the dates due. But that is not a true Arrears situation, just the way the DWP work stuff out and process things.

shedboy94

Horseunderwater wrote: »

Not by my definition it isn't - to run something late just means that instead of processing somehing at 9am it is processed later same day. Another example is running an athletic event with a later start.
Arrears means money owed from an earlier time such as a back payment of your benefit due to you finally being awarded the correct amount or when you pay off mortgage payments or rent owing from another payment due period. And if you do not understand that, then there is not much hope is there. And as I said HMRC do not pay tax credits in arrears - they tell you the dates the payments are due and 99% of the time it gets paid on that day. However other benefits are paid in Arrears, but still normally on the dates due. But that is not a true Arrears situation, just the way the DWP work stuff out and process things.

Not strictly true.
Tax Credits can be paid in arrears, but also in advance.
As an example, the tax year starts on 6th April - those who are paid every 4 weeks can be paid at anytime within 4 weeks of 6th April - some may be paid on 6th April so effectively are paid for the 4 weeks ahead, others may receive their payment on 4th May so have been paid for the 4 weeks that have passed - others are paid in the middle of this so are effectively paid some in advance and some in arrears.

consumers_revenge

Horseunderwater wrote: »

Not by my definition it isn't - to run something late just means that instead of processing somehing at 9am it is processed later same day. Another example is running an athletic event with a later start.
Arrears means money owed from an earlier time such as a back payment of your benefit due to you finally being awarded the correct amount or when you pay off mortgage payments or rent owing from another payment due period. And if you do not understand that, then there is not much hope is there. And as I said HMRC do not pay tax credits in arrears - they tell you the dates the payments are due and 99% of the time it gets paid on that day. However other benefits are paid in Arrears, but still normally on the dates due. But that is not a true Arrears situation, just the way the DWP work stuff out and process things.

Horse, dont shout at me, Im only passing on info to help the OP

You want to correct someone, ring the HMRC.

Horseunderwater

No shouting involved - no capitals or bold used.