New Job & Tax credit help!

cakey87_2

Hi Everyone

Im hoping someone can help as im a bit confused. I am a single parent currently working 24 hours per week and claiming CTC & WTC. My income for 12/13 was £10672 which I have gave on my recent renewal, however I am due to start a new job in September full time earning £16k however this is a fixed term contract which will end april 14. My question is this, when I call to update my details do I work out my earnings for my current role and add on what I will earn in my new role or do I just tell them I will be earning 16k?

Working out my earnings for 13/14 with this job and my new role will come to about 12.5k? Sorry if this is difficult to understand I just want to be sure I do it right to see where I am at with childcare etc.

Many thanks

zagfles

Give them an estimate of your 13/14 total income, looks like that'll be under the £5k disregard for income increases so it shouldn't affect your award this year.

It will affect your award for next year even if you drop back to your old salary, because there's a disregard for income falls too (£2500).

cakey87_2

Thats great thank you for your reply, so if I estimate what I have earned and am due to earn the rest of the year and give them that? Would that not mean I will be receiving a big overpayment though? Dont really want it to come to april and have to pay a lot back! Thanks

zagfles

No, your income can go up £5k this tax year compared to last, and it won't affect your award this year. It will affect your award next year, as that will be initially based on your income this year, so it's worth telling them so they get the "run-on" payments correct from April till the renewal is processed.