Renewed my tax credits, but worried!

Abcynthia

Hi there,

Just a little panicky. I renewed my tax credits and got the reward notice for this year.

My partner earned £2800 last year (he finished university, then it took a while to get a job). Now his wage this year will be £21,000. If he stays in the same job/has no illness etc there will be no questioning that is how much he will get as he is salaried. I told them his income estimate for this year.

When I got the reward notice it was a little more a week than I expected. I read through it and found a note saying they have put his income estimate down as £16,000, which they are aware is less than I said, but they will use the income I gave for the following year.

I'm worried now! Is that something to do with the £5000 disregard? Have they done the right thing or have they just chosen to estimate lower, meaning we could end up owing money at the end of the year?

Sorry I'm just petrified of ending up having to pay them money back.

Thanks for reading.

Icequeen99

There is £5,000 disregard, but the award notice should show the real income (estimate or actual) not the figure minus the disregard.

IQ

Abcynthia

Thank you for your reply ice queen.

It does show that I stated the income was 21000 but it is in a small note underneath saying they have used the income 16000 to calculate the figures which they are aware isn't what I gave them as an estimate. Very confusing x

Icequeen99

Abcynthia wrote: »

Thank you for your reply ice queen.

It does show that I stated the income was 21000 but it is in a small note underneath saying they have used the income 16000 to calculate the figures which they are aware isn't what I gave them as an estimate. Very confusing x

In that case, yes it is the disregard.

IQ

zagfles

Abcynthia wrote: »

Thank you for your reply ice queen.

It does show that I stated the income was 21000 but it is in a small note underneath saying they have used the income 16000 to calculate the figures which they are aware isn't what I gave them as an estimate. Very confusing x

Yes that's normal. It all sounds right - as long as income doesn't go over the £21k estimate you'll be OK.

Dovah_diva

Abcynthia wrote: »

Hi there,

Just a little panicky. I renewed my tax credits and got the reward notice for this year.

My partner earned £2800 last year (he finished university, then it took a while to get a job). Now his wage this year will be £21,000. If he stays in the same job/has no illness etc there will be no questioning that is how much he will get as he is salaried. I told them his income estimate for this year.

When I got the reward notice it was a little more a week than I expected. I read through it and found a note saying they have put his income estimate down as £16,000, which they are aware is less than I said, but they will use the income I gave for the following year.

I'm worried now! Is that something to do with the £5000 disregard? Have they done the right thing or have they just chosen to estimate lower, meaning we could end up owing money at the end of the year?

Sorry I'm just petrified of ending up having to pay them money back.

Thanks for reading.

Award notice, not reward. Although it does appear some people are rewarded....