Tax Credit

RealWelshWizard

I currently get £47 a week. I have been looking at the thresholds. If I earn just £1 over 30k in a year does this have a significant effect, or is it calculated on a pro rata way?

zagfles

Tax credits are tapered, there's no cliff edge. The supposed thresholds you see (ie limits for eligibility) are just where tax credits taper to zero. Taper is 41%, there's also disregards for increases and decreases. Basically you are unlikely to be worse off earning more, except in a few unusual circumstances.

RealWelshWizard

Hi, another question regarding this subject. Last years claim form was based on the previous years income (from p60) just had this years P60 - a increase in income of £5,000 ish.

I have just used online calculator and it is saying with this pay I would get £11 / week. does this mean I have been over paid this last year and will have to pay back, or is this just how they work it out?

Hope that makes sense,

RealWelshWizard

thanks for the quick reply. there is a difference of £5,204.22 increase on this years P60 (2014) compared to last years (2013)

2013 - £26,389.80
2014 - £31,594.02

RealWelshWizard

thanks for that. I haven't given any estimate for 14/15 yet. I am still been paid last years so I guess that will mean I am been over paid from April this year?

RealWelshWizard

Thanks. I haven't had renewal form yet but I'll try and call them in the morning to update anyway and see what they say.

RealWelshWizard

just called now and the lady said they know what I have earned through the automatic way they track wages.

She said she couldn't alter anything until we have our claim pack (sent out on 11/5/14, she sending another one)

I asked about over payment for last year, and also if I am getting over payment now, but she said she couldn't do anything until we get our claim pack and check the details.

RealWelshWizard

still not had a renewal in the post. The woman told me they had all the information already. She said when I get the renewal if everything is correct I don't have to do anything? Would my payments just change automatically?

Horseunderwater

Yes they might. Depends on your total gross income for last year & whether any disregards apply or not. When letter arrives, read it through & check that hours, income (childcare if applic) & all other details are correct. If they are, then nothing else will need doing.

RealWelshWizard

if they are correct will I not even have to send anything back? When are the new payments likely to take effect from?

RealWelshWizard

Thanks for that. All I am concerned about is the fact that since 9 th April I have been getting £41 / week based on £27k estimate. I think this is wrong and should have been only getting £11 - £12 / week.

They said they have sent a letter but I still haven't had it.

If the letter got lost in the post but it was a auto renewal, when are my payments likely to change?

I just don't want to keep receiving money that i am not owed.