Tax credits confusion

sacha28

I am so confused with tax credits, no wonder people get into problems with them!!

My situation is this.....I am in a realtively well paid job at present. I work for the NHS so get unsocial hours payments. This has bumped my pay up over the years, although my basic pay is £17425 pa.

We are relocating very soon but my job will be less hours, initially, so therefore my wages will decrease considerably (my take home pay will reduce from £1600 pm to £900 pm) so have been looking at tax credits to help this temporary situation. Problem is, as they take last years pay into consideration, the calculator has basically given me a big fat no!!!! Is this just the way it is?

I know people will look at my figures and wonder why the hell we're doing it but it is far more complicated than what I have written!! I am more than happy to put more info on how my future will improve if anyone's interested!!!!

Icequeen99

When you make a claim, it will be based on last year's income, but you can change to an estimate of this year's income once they have processed the claim.

However, there is a disregard for falls in income from one year to the next of £2,500. So if your 13/14 income is 25,000 and you think your 14/15 income will be 15,000, HMRC will use 17,500 as your 14/15 income because of the disregard.

IQ

andrewwales666

Hi,
im writing on behalf of my stepson . hes been working for 7 years in a small computer shop and has been getting working tax credits.About 2 years ago his boss stopped giving him payslips and payed cash in hand and because of the lack of payslips his credit was stopped and has been told he has to pay back £2400,he has often asked for payslips but his boss just makes excuses as to not give them.He has been told to pay £66 a month but he is on a low wage and will struggle to do so.Can anyone give us some advice please

Icequeen99

andrewwales666 wrote: »

Hi,
im writing on behalf of my stepson . hes been working for 7 years in a small computer shop and has been getting working tax credits.About 2 years ago his boss stopped giving him payslips and payed cash in hand and because of the lack of payslips his credit was stopped and has been told he has to pay back £2400,he has often asked for payslips but his boss just makes excuses as to not give them.He has been told to pay £66 a month but he is on a low wage and will struggle to do so.Can anyone give us some advice please

So he hasn't been paying tax or national insurance either?

IQ

andrewwales666

hi my apologies for posting the lst message it should have been a new thread

andrewwales666

well we are not sure of that