Tax Credit advice please

TCannoyed

Can anyone give me an idea of what to do? I'm ready to declare what our joint income will be for this year (as it has dropped significantly from last year.
Now the question is. Do i use the amounts that i predict will be earned as i currently know it or do i include the pay rises me and my partner are abut to receive. We are on low income (just under 13k). The pay rises will add around £800. Would i be better off using the first figures or the ones which will have the pay rises on? What effect would this have on my TC's? Would i lose out?
Or should i use the first figures and leave it till the end of the year? What effect would this have taking into account the £2500 leeway you seem to be allowed.

Sorry about all the questions.

irs101

OK, it's obviously in your interests to declare a drop in income, even if you don't have to, because you'll get your tax credits increased straight away rather than getting a lump sum in a years time.

The first thing to say is that you will not lose out either way - it will all come out in the wash when you finalise your award after the end of the tax year.

The £2,500 is the increase you are allowed compared to last years income, so assuming that even with the pay rise you are still going to earn less than last year, this allowance is irrelevant for you (at the moment anyway, unless you get a big pay rise later in the year).

The main issue is what is your attitude to being in an overpayment situation? If you don't add on the £800, you will owe up to £296 once you finalise your award. They shouldn't ask for this back as a lump sum, but will reduce your tax credits by 25% until it is repayed. If you report the higher figure, you'll get lower tax credits now (£5-6 less a week), but you won't owe anything at the end of the year - indeed they might owe you if income is less than estimated.

Swings and roundabouts really.

irs