tax credits-and change of income.Help!!

carebear13

Hi, really need your help as i just seem to be getting more and more confused.
we have had a big change in circumstances because of our daughter being awarded hrc and hrm and a bigish change in income due to self employment income.
have looked at different calculators and some ask for last years income and some dont and because of this i am getting different amounts coming up.
2012-2013 our final award was based on £33222. this year we are estimating £39500.
we have 4 kids under age 16, 1 on hrc&hrm dla. carers allowance, no childcare. both work (although i am on ssp). the amounts i have been coming up with vary from £140-£175!!! per week. Any help with calculations would be great thank you.

mummyroysof3

I think sometimes it just works out best to ring them and then wait for the paperwork to see what you get. I tried entitled to site but I'm not believing what it says so I'm just waiting on paperwork now.

Icequeen99

Does the 39,500 include the carer's allowance?

Tax credits will be based on previous year income to start with. It will stay on previous year, and be finalised on previous year providing your income doesn't go up by more than £5,000 or fall by more than 2,500.

If it does go up my more than 5,000 then they use current year income less 5,000. If it goes down by more than 2,500 then they use current year income plus 2,500.

If you can confirm the carer's allowance situation I can tell you the income they will use in 13/14.

IQ

carebear13

Yes. Have included 33 weeks of carers allowance, 28 weeks ssp and holiday to take when that runs out plus income i earned before she got sick.

Icequeen99

carebear13 wrote: »

Yes. Have included 33 weeks of carers allowance, 28 weeks ssp and holiday to take when that runs out plus income i earned before she got sick.

If your income works to be definitely 39,500 (i.e. the estimate is accurate) then your 13/14 credits will be based on 34,500 because of the £5,000 disregard.

IQ

carebear13

Even though its up by 6,000?

carebear13

Is this right-take 5000 off this years? Sorry my brain is so full of other stuff i struggle a bit. But i think i understand now. Thank you.x

Icequeen99

carebear13 wrote: »

Is this right-take 5000 off this years? Sorry my brain is so full of other stuff i struggle a bit. But i think i understand now. Thank you.x

Yes, you get the first £5000 of the rise disregarded.

But it is important that you still give HMRC the full figure. You don't do anything with the disregards - they do that. I was telling you just for the calculators.

IQ

carebear13

ok. thank you IQ you are a star.x