Tax credits, how much will I have to pay back?

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fossman
fossman Posts: 353 Forumite
First Post First Anniversary Combo Breaker
edited 16 November 2015 at 7:46PM in Benefits & tax credits
Hi everyone

My wife is going back to work now that our daughter has started school, we currently receive tax credits but the addition of her new earnings will take us over the tax credits limit .

Our earnings for the 8 months to the end of November will be below the limit (pro rata) so will we only have to pay back 4 months worth of tax credits or will they want the full 12 months back?

Say our earnings for 2014/15 were £21,500 and we were awarded tax credits for 2015/16 of £1,500. If our earnings increase to £27,000 (over the £5,000 increase limit and over the £26,000 tax credits earning limit) will HMRC want back all of the tax credits we have been paid to date?
Cashback earned
Quidco : £858 :)
Pigsback : £20 and a Beatles CD.

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  • fossman
    fossman Posts: 353 Forumite
    First Post First Anniversary Combo Breaker
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    OK thanks for that.

    I was just worried that HMRC would say our earnings are above the tax credits limit and want the full amount back.
    Cashback earned
    Quidco : £858 :)
    Pigsback : £20 and a Beatles CD.
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