Wtc And Income

daff_duck

Assuming you had income of around £6500 in 06/07 and you estimated 07/08 at £9000 and you got TC of about £103.00. When renewal came and you only earned £7000 in 07/08 not £9000 how would this affect you.

daff_duck

Can anyone help?

bergy2

Hi

Well first off you should imho always underestimate income for the upcoming year as long as it isn't way off the mark - not much ever gets recalled later and if it were to be it would be deducted from the following years TCs
I understimated by over £1000 last year and they absorbed it and i paid nothing back after the declaration

If you over estimate i am fairly sure you will get any extra TCs added next year

Go to the entitled to site and you can work out the calculations for TCs by the way

hotblu

If you estimte your income at 9000 and only earn 7000, then after you have completed your renewal they will recalculate to see how much you were underpaid and you would recieve it as a one off payment. You should never underestimagte your income as it can cause overpayments. Hope this helps.
Also, for this tax year (07/08) the income disregard is set at £25000.00 for all applicants based on py actual income.

daff_duck

bergy2 wrote: »

Hi

Well first off you should imho always underestimate income for the upcoming year as long as it isn't way off the mark

Isn't that how overpayments happen?

jay1jay

Please don't under estimate your income. If you do and you are overpaid, the overpayment will never be written off. They will calw back the overpayment from your future claims, but if your claim stops for any reason, like moving in or away from a partner, they will send you a bill for the entire amount overpaid. 99% of the overpayments are from under estimating income & they do not get written off. trust me!

bestpud

You will get it in a lump sum when they have finalised last years award.

As already said, never under estimate!!! It's always better for them to owe you than the other way around.

I always work out our income and add £500 in case of overtime. It usually works out ok that way.

Hth

Bestpud