£5000 disregard

sorethumbs

Thanks Darksparkle.
We have informed them. I guess I'm just overly suspicious about getting extra money from HMRC and it being 'disregarded'.


I'm not used to these things working in our favour.


Thanks again

Darksparkle

sorethumbs wrote: »

Thanks Darksparkle.
We have informed them. I guess I'm just overly suspicious about getting extra money from HMRC and it being 'disregarded'.


I'm not used to these things working in our favour.


Thanks again

In the nicest way possible, you don't need to think about the disregards.

All you need to think about is keeping them up to date with all changes. It's up to them to calculate the disregards (it's done by the system so avoids human error).

You then check your award notice, make sure it's correct and tell them if it isn't.

They are slowly reducing the disregards anyway so eventually won't be an issue.

sorethumbs

While I'm here and have your attention can I ask a sneaky quick question.
My partner has done this extra work this year and due to an operation will probably stop work in April/May 2016. What's the best way of telling them we will be back down to 20k from 24k.


Will they adjust payments accordingly 'on the fly' for 2016-17 or will we need to wait until 2017-18

Darksparkle

sorethumbs wrote: »

While I'm here and have your attention can I ask a sneaky quick question.
My partner has done this extra work this year and due to an operation will probably stop work in April/May 2016. What's the best way of telling them we will be back down to 20k from 24k.


Will they adjust payments accordingly 'on the fly' for 2016-17 or will we need to wait until 2017-18

This works in the exact same way as telling them your income is going up, you simply call them and tell them of the change.

This is essentially a two part change:
- ending work, this can only be updated once it's happened
- change of income, this can be updated anytime from the start of the tax year, 6th April.

It's up to you if you want to wait and make the call at the one time or call twice.

The disregard for decreases are £2500.

So if 2015/16 £24,500 and 2016/17 £20,000, the 2016/17 claim will be based on £22,500.