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Tax credits and returning to work full time.. so scared!!

Hey everyone,

I went part time after having my two little monkeys and have been dithering about returning full time for a couple of years but I have been so scared about oweing HMRC and paying back all our tax credits!

We are struggling financially so it's a definite and I am due to return to full time in September/October. We are currently receiving £300 per month which is mostly the childcare element of tax credits am I right in thinking that I will now have to pay all that back going back to April this year?

I will be increasing my salary by about £12,000 and my husband has had the oppurtunity for some overtime and due to us struggling so much he has taken it, he is probably going to earn another £2000 extra up until April. Our combined salary's will probably be around £47500 when it all happens.

I am so scared that me returning to work is not going to be beneficial at all as we are going to have to pay everything back :(I feel like I should have just waited til next April but I just want to stop relying on them. Also because I know it is going to happen, do I ask they stop payments now even though I will still be paying for childcare until September on a part time wage as my increase wont happen for couple of months? We would be £600 down a month and really don't think we would cope I'm just so scared about paying £1000's back :(.

My kiddies will all be getting free childcare come september so I assume we won't be getting a penny from TC and to be honest wouldn't expect to on our wages, so how will they expdect all these £1000's back? I'm so stressed!

I would ring them but my monkeys are being really monkeyish today so I have no chance of trying to have a grown up conversation! haha

Thank you for listening xx
2017 wins so far: Diddly squat :(
Make £10 a day in February - £16.05/£280

Comments

  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    You can call them at anytime to change your estimated income for this tax year.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    To add, if you can give more specifics about your claim I can do a calculation for you.

    How many hours do you both work?
    How many hours will you work once changed?
    What are your childcare costs?
    What was last year's household income?
  • wishies_x
    wishies_x Posts: 93 Forumite
    edited 20 June 2017 at 3:00PM
    I know, if I rung and they stopped the payments now I still have two months of childcare left on my part time wage and I wouldn't be able to pay it as we are struggling hence why I am going full time, but I know every penny they give me I am going to have to pay back. I just don't what to do for the best :(

    I work 17.5, husband works 37
    Once I go full time we will both work 37
    Childcare costs now: £64 a week (Once I am full time they will also be in free childcare so these will be 0.
    Last years house hold income was:£27610

    Thank you for your help xx
    2017 wins so far: Diddly squat :(
    Make £10 a day in February - £16.05/£280
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    It is likely that you'll need to pay back all tax credits you've had since April until you update the change.

    However as your household income is increasing this year by £20,000 it would seem you won't be worse off.
  • wishies_x
    wishies_x Posts: 93 Forumite
    Thank you for your help :) I am trying to sweet talk the grandparents into having her so at least I will be paying half price for her and I will ring them asap. Do I start paying back from April next year when they do the final award notice or will my repayment be expected straight away?

    Thanks again xx
    2017 wins so far: Diddly squat :(
    Make £10 a day in February - £16.05/£280
  • neilvw
    neilvw Posts: 462 Forumite
    wishies_x wrote: »
    Thank you for your help :) I am trying to sweet talk the grandparents into having her so at least I will be paying half price for her and I will ring them asap. Do I start paying back from April next year when they do the final award notice or will my repayment be expected straight away?

    Thanks again xx

    https://www.gov.uk/tax-credits-overpayments/repay-your-tax-credits
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