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Tax credit cut

Hi guys
Last year I got a second job ... I did call the tax credits line and my payments went down a bit (not as much as expected so I have been saving a bit each month)
Well come April my payments almost halved. I completed my review online and have checked online and my next payment will be a little bit more than the last one.
I have checked using the tax credits calculator and I'm getting around £170 a month less for this new payment. .. Hope this is making sense .. Sorry

I'm guessing it is because I have had an over payment but it doesn't explain anything online and I haven't had anything through the post.

Will I get anything through the post and does anyone know how long they spread the over payment debt ?

Thanks guys
Lisa
DFW
January £0/£11,100

NSD
January 1/31

Comments

  • nilocmac
    nilocmac Posts: 511 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Now I am not 100% sure about this but I think the cut is really reflected in the next full year not the year you are in.

    So although you had your tax credits cut last year the full cut does not come into effect until the new tax year. I imagine they said to me they allow a bit of grace to get used to the cut.

    I am sure someone will correct me if I am wrong.
  • mumofthetwins
    mumofthetwins Posts: 1,111 Forumite
    Thanks .. I was thinking it could be something like that and that's why I've been saving some each month just incase.
    I assumed that I would have had a letter in the post by now though.
    Lisa
    DFW
    January £0/£11,100

    NSD
    January 1/31
  • Hi

    If your income goes up by £2500 or more they recalculate everything based on your new income for the current years award.

    If your income goes up but does not exceed £2500 more then the current year stays the same (more or less) and they change the following years award..

    That's my understanding of it anyway.

    If you've told them everything you've earnt then you should be ok.
    Balance at start of mortgage Dec 2011 £87500
    1 Jan 2015 = £73,735 Overpayments = £3,360 (average £280 p/m)
    1 Jan 2016 = £66,558 Overpayments = £4,770 (average £397.50 p/m)
    1 Jan 2017 = £57,756 Overpayments so far Jan £0 Feb £550 Mar £3022 April £690 May £1513 total £5775
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