Ok, I Admit It, I'm Thick! WTC Query

SallyUK

My award says:

Changes In Your Income

After 5 April 2008 we will check your whole award when we know your actual income for the year, and if we owe you any more we will pay it. - Fair enough, I understand that part

If you income goes UP, it will NOT usually affect your tax credits for this year. Your payments are likely to stay the same until 5 April 2008. But you should still tell us straight away if your income goes up. This is because we need the latest income figure to work out your tax credits payments from 6 April 2008.


How can I tell them my latest income figure for 2007 when it's not the year end yet??

Confused!

CIS

You need to estimate you income for the year ie if you spend 6 months earning £1000 a month and then change jobs and expect to earn £2000 a month for the rest of the year, you tell them you'll earn £18000.

At the year end you then give a finalised figure.

SallyUK

When I filled in the form, they only asked me what my income was from 5th Apr 2006 _ 2007. They didn´t ask me what I was earning 2007-2008.

I just told them how many hours I was working (which had changed from 16hrs in 2006-2007 to 40hrs for 2007-2008.

Very confusing!

Sal
x

hotblu

Hello,

Reason they need to know an estimate for the current year (07/08) is because the figure they hold will be used for next tax years (08/09) provisional payments. You are unlikely to get overpaid this tax year because your award is based on your previous year (06/07) income and you have been given a disregard of £25,000 (basically, award calculated on 06/07 income, can earn that plus a further £25,000 and you wont get overpaid, but your 08/09 award would decrease because it woulod then be based on 07/08). I hope I haven't confused you further.

Hotblu