Working & Child Tax Credits

wayne7

Hi can anyone please advice me.

My situation is that i receive working and child tax credit of around £95 per week.

However i want to start working and am wondering when would i notify the HMRC when i start work, or when i receive my first wage packet.

I am also concerned whether i would need to pay back any of money i have received to date this year, or do i just end the tax credits from the date i start work and thats the end of it and nothing to repay.

I don't want to ring HMRC just incase they stop my money before i even find a job.

Any help greatly appreciated

Regards

Caz3121

If you currently receive WTC, I assume you have a working partner, is that correct?
Your award for this current year is based on household income from 15/16 (unless you have used an estimated income already)
If you are going to earn over £2.5k this tax year then your award will change. (the first £2.5k of an increase does not affect payments) When you give them the estimated household income for the 16/17 tax year they will recalculate the claim, deduct what has already been paid to date and spread the amount still due over the remaining time period.

DigForVictory

Tell them before you start as their software can cope fine with up to a 31 day lag. If they don't realise you aren't getting paid til over 31 days, point it out.
You may be asked to call back within 31 days of paycheque, but tell them early.
All the best getting back into work!

wayne7

Hi that is correct i have a working partner.

I do imagine i will be earning more than £2.5k this tax year, not too bothered about the payments stopping i am more concerned that i will have to pay back what has been paid to me this year since April.

As an example if our household income is currently 11k per year, however i start work today so our joint household income come April 2017 amounts to 25K will i have to pay back the the tax credits we received from April 2016 to the date i start work.

i hope i'm not confusing matters....

regards

Darksparkle

wayne7 wrote: »

Hi that is correct i have a working partner.

I do imagine i will be earning more than £2.5k this tax year, not too bothered about the payments stopping i am more concerned that i will have to pay back what has been paid to me this year since April.

As an example if our household income is currently 11k per year, however i start work today so our joint household income come April 2017 amounts to 25K will i have to pay back the the tax credits we received from April 2016 to the date i start work.

i hope i'm not confusing matters....

regards

Do you mean your household income for this tax yet will be £25,000 or from next tax year £25,000?

It's this tax year that will count.

Calling them won't stop your claim. If a change doesn't exist they can't make one.

Darksparkle

DigForVictory wrote: »

Tell them before you start as their software can cope fine with up to a 31 day lag. If they don't realise you aren't getting paid til over 31 days, point it out.
You may be asked to call back within 31 days of paycheque, but tell them early.
All the best getting back into work!

You can notify a start of work within 7 days of the start date.

wayne7

Hi yea it will mean our income for 2016-2017 will be £25k and envisage our income from 2017-2018 to be £30k

Regards

Darksparkle

So your claim for this year will be recalculated on £22,500 due to the £2,500 disregard.

It's not possible to say if you'll have been overpaid already without doing a full calculation but generally they will work out how much you're entitled to for the tax year and compare that to what has already been paid.

Caz3121

wayne7 wrote: »

Hi yea it will mean our income for 2016-2017 will be £25k and envisage our income from 2017-2018 to be £30k

Regards

if your award was based on £11k and your income will be £25k then they will recalculate based on an income of £22.5k (ignoring the first £2.5k)
Whether you will have anything to pay back will depend on what your new annual award is and what you have been paid to date
will you now have childcare costs?


edit: typed too slow...

wayne7

Haha ....thanks so by the sounds of things i will be looking at having to pay something back.

so i maybe as well just looking for employment come April then really.

Darksparkle

wayne7 wrote: »

Haha ....thanks so by the sounds of things i will be looking at having to pay something back.

so i maybe as well just looking for employment come April then really.

Surely the fact you'd have an extra £14,000 income this year means you could handle an overpayment of approx £2,000 if you started work next month?

If you would in fact be overpaid all TC which we can't say as we don't know your circumstances (no of children, childcare, disabilities etc).