Under estimate of income for tax credits

happybear1

Hi

This is my first post i have just completed my tax credit renewal over the telephone. My concern is that i understimated my husbands income by £7000 last year, so in effect i have been over paid.

But my husbands income for this year will be £14,500, due to a change of job, does anyone know hoe this will effect my tax credits for this year and will i have to repay back last years overpayment out of this years tax credit award.

I was told the not to call back before 8 weeks and the renewal had gone through fine.

Many Thanks

:

Caz3121

happybear1 wrote: »

This is my first post i have just completed my tax credit renewal over the telephone. My concern is that i understimated my husbands income by £7000 last year, so in effect i have been over paid.

But my husbands income for this year will be £14,500, due to a change of job, does anyone know hoe this will effect my tax credits for this year and will i have to repay back last years overpayment out of this years tax credit award.

other figures would be needed
what was your total income for 13/14?
what was the total income for 14/15? and what figure was the award based on?
will £14,500 be the total household income for 15/16?

happybear1

HI caz3121

Total incole 13/14 was £35000.
14/15 was £33064 but i estimated it at 26000.
15/16 income will be 26560, this is for 2 children under 16 1 of who has higher rate care component.

Thank you for your help.

happybear1

Hi blonde bubbles,

Thank you for your reply, i have been claiming child tax credits for 12 years now and i am still stumped every renewal time !!

zagfles

happybear1 wrote: »

HI caz3121

Total incole 13/14 was £35000.
14/15 was £33064 but i estimated it at 26000.
15/16 income will be 26560, this is for 2 children under 16 1 of who has higher rate care component.

Thank you for your help.

Based on above likely be an overpayment of £2665 last year, although if you gave the estimate part way through the tax year they won't normally have paid you before the date you told them, instead you'll see a "potential payment" on the award notice, so your overpayment will be reduced by this, and of course you won't get the "potential payment".

There'll also be overpayment this year since April, about £56pw but this will reduce if they accept your estimate. Make sure you keep them up to date if income changes.

They'll collect it through reduced award this year and possibly next.