How much more can you earn in subsequent years

Horlock

I seem to recall (from painful experience) that in years gone by if you earned more next year than you earned this year - then next tax credits were calculated on this years income but you would be made to repay them all eventually.

I believe that this stopped, however, I also believe there was a caveat on it stopping. Something like, if next year you earn less than £20000 more than this year then you don't have to repay but if you earn more than £20000 more than this year then you do have to repay.

Does anyone just happen to know the exact figure?

Hope the question is clear enough.

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Example situation

John first claims tax credits in tax year 12-13
Tax year 12-13 John earns £10,000 (for the sake of argument we'll assume he earned the same in the previous year). Tax credits are paid for all of tax year 12-13 based on £10,000
Tax year 13-14 John earns £12,000. Tax credits are paid on previous years income (ie as if he only earns £10,000 even though he actually has an extra £2000 - years ago he would have had to repay the extra but now he no longer does)
Tax year 14-15 John earns £33,000. Tax credits will be paid on previous year's income (ie as if he only earns £12,000).

He now has earned £21000 more than previous year - will he have to repay the tax credits. Is it more complex than this. What if he had earned £43000 or only £23000. Is there a simple figure which decides whether John has to pay back?

Horlock

Thank you very much, sadly not what I wanted to hear, as it seems that John probably just made a voluntary pension contribution in the wrong tax year!

Thanks for getting back to me so quickly though.