Confused by working tax credit

elfieb

I've recently returned to work after being on JSA since April this year. For the previous 18 months, I was very unwell, not working or claiming benefit.

When signing off at the job centre, tax credits were mentioned.....I went on the calculator and apparently I am entitled to working tax credit. This confuses me as my new salary is above the £13k threshold (although not by much).

I'm concerned as I don't want to apply for something, only to have to pay it back at a later date. Is working tax credit assessed on the previous tax year? Will it matter that I was neither working or claiming benefit last year?

TIA

Mersey_2

elfieb - Tax Credits can seem very confusing. Think of them initially as a tax rebate in your case, ie you're being reimbursed because you didn't use up your personal allowance in the previous tax year.

But, you can update them with your earnings - and are required to do so - within a year. Obviously you wouldn't continue to claim them if say your salary doubled next year.