CTC and redundancy query

Wellgood

My wife has been informed she will be made redundant in October 14. We have 3 children and currently receive child tax credits. When we contact hmrc in October to tell them my wife is no longer working will they recalculate the new child tax credit figure or do we have to wait until next tax years calculation for the change? (as tax credits are always 1 year behind). Thanks for any advice.

Caz3121

is she planning on getting another job?

Wellgood

No - not straight away as clause in redundancy payment saying she has to wait 6mths before she can apply for a job within the same industry otherwise has to pay back redundancy pymt

zagfles

If your annual income for next tax year is likely to be £2500 below this year you can give them an estimate and you'll get more tax credits. But if your estimate turns out to be too low, eg your wife gets another job, you could end up with an overpayment. Even if you tell them straight away.

The tax free part of redudancy payment won't count as income but anything taxable will (eg PILON, holiday pay, redundancy over £30k etc).

Wellgood

Just wondering best way to fill in Ctc forms considering wifes redundancy part way through tax year 14/15. As example do I put her full p60 for last year as 15000 and child care costs of 5000 for year and then inform them in Sept of change when she is made redundant. Or do I pro rata her salary and the childcare costs for 6 mths I.e 7500 and 2500?????? She won't work once made redundant as part of redundancy t&c's. Thx for any advice