CTC obtain job part way through year

densol_2

I took voluntary redundancy this year. I was a high earner. I am self employed now claiming CTC etc - I plan to work on my business until July 2015 and if it's not taken off by then - I'm going to get a job and be employed again :-(

I expect to be in a loss situation if that happens - so zero income. Main loss will be this year with AIA allowances against turnover. Next years loss will be minimal.

My income therefore from April 2015 to Sep 2015 will be 0

My income ( if I get a job in my previous field will be around £50k - I did earn more but expect to take a reduction getting back into the market )

The CTC will be worked out on zero income for the first 5 months of the tax year then of course the £50k will wipe out any claim ( pro rata for the 7 months left of tax year would be £ 30 k ) so the years income is £30 k - thus more than the allowed amount per year

What happens to those first 5 months payments ? Are they automatically classed as overpayments then - even though I had zero income - cause the 7 months income is used for the year ?

Thanks

densol_2

Thanks that's very helpful and allows me to budget accordingly