tax credits question

yan101_2

hello

just trying to figure out my tax credits award. i wonder if anyone can help, ill try and make is simple.

In 2015/2016 i was on esa up until feb 22nd 2016 when i got a job. in that same tax year my partner got £3229.20 in carers allowance. so from feb 22nd this year when i got the job, up to the end of the tax year i earned £2113.76.

my yearly salary is £22,200 and my partner will still receive the carers allowance.

since i started the job i have been getting roughly £150 a week in child and working tax credit. i have just had a renewal letter through. will these payments last the whole of 2016 as its based on last years income? or will they drop because my wage increased? if so when will the payments drop?

im so confused by it all, i thought it was based on the previous year, it says on the online calculator that the initial award is like £8k for 2016/17 then the final award is about 25 quid a week. but when does it drop?

Darksparkle

What type of ESA? If contributions based, how much was it last year?

Have you told HMRC your expected earnings for this tax year?

How many children? Any childcare?

Who does your wife receive carers for?

Anyone in the household on DLA or PIP? If so what rates?

yan101_2

income based esa, yeah i told them the expected salary when i started the job. i have 1 child, no childcare costs. my partner gets carers for her grandad. no one on dla or pip

Darksparkle

yan101 wrote: »

income based esa, yeah i told them the expected salary when i started the job. i have 1 child, no childcare costs. my partner gets carers for her grandad. no one on dla or pip

You couldn't have updated the income for this tax year (2016/17) until the year actually started (which was only on 6th April) so you'll need to do that asap.

When you started in February they would only have been able to update 2015/16.

Once you update this change, they'll recalculate your claim which should be approx £1336 for the year.

How much you'll now get will depend on how much you've already had since April eg we're 5 weeks into the tax year, 5 X £150 = £750 so there would be £586 left to be paid between not and next April which would be approx £12 per week.

yan101_2

When i rang up on 22nd feb. they asked me what the annual salary was to work out how much i would earn up until year end. Is that not informing them of my salary?

Darksparkle

yan101 wrote: »

When i rang up on 22nd feb. they asked me what the annual salary was to work out how much i would earn up until year end. Is that not informing them of my salary?

That was you updating your income for 2015/16. In that year you only worked for a few weeks.

Since then we have changed tax years so you need to call them and tell them what you expect to earn this year, a full year's salary.

yan101_2

Yea thanks for that. I filled in a renewal thingy online yesterday. I knew it was odd that theybwere paying me so much when i was earning 22k. Thanks for the advice