Tax Credits question re when only eligible for part of year

MrsBartolozzi

Hi there,

My youngest son is joining the army soon (hopefully September) and as such his CTC and my WTC will end in August. I am and have been looking for more hours/ full time work as I have only a 20hr contract right now, but will manage (just) if it's just me to feed and clothe.

What I'd like to know is:
When I fill in the TC form next June (review for this year), will my whole year's pay count or just up til August? The reason I ask is that once DS leaves I'll be able to relocate and look for jobs further afield in my field which I was unable to do while living where I am now iyswim? I don't want a nasty surprise of having to repay all this year's TCs if I get a much higher paying job (possibly unlikely, but a girl can dream), although tbf if I get a massive pay increase I'd probably not complain!

Icequeen99

Yes, the income will be averaged over the year. So a higher paying job in the latter part will affect the income for the earlier part.

IQ

zagfles

Yes it's the whole tax year's income which is used, though the first £5k increase is disregarded, so if (eg) you get a job with a £10k higher annual salary in October, your income for the tax year will only be £5k higher so there'll be no overpayment.

Plus, if it's 30+ hours you could still get some WTC after Aug.

MrsBartolozzi

Thanks, I suspected this might be the case. Oh well, forewarned is forearmed. I'll be sure to work out what I'll owe if/when my income increases, so no nasty surprises.