Working Tax Credit: Delayed declaration of earnings, deductions and working hours

System

Darksparkle wrote: »

So it isn't an award for 2016/17 then.

No, it's not.
I just want to correct the mistake I did three months ago.

Any advice on that?

Thanks!

Darksparkle

You said previously you had an overpayment for 2016/17. Anyways. . .

If you want to correct the income and hours, just call them.

bikeman

Darksparkle wrote: »

You said previously you had an overpayment for 2016/17. Anyways. . .

If you want to correct the income and hours, just call them.

If only it was that easy
https://forums.moneysavingexpert.com/discussion/5700468


A friend who works for the DWP once said to me 'if you're working tax credits is nothing more than an interest free loan'. Simplistic I know but in my case it is true. Early in the tax year I often get limited work and tax credits, usually as the year progresses I land more work and my TCs get cut - the following year I get hit with an overpayment and have to pay it all back.

Darksparkle

bikeman wrote: »

If only it was that easy
https://forums.moneysavingexpert.com/discussion/5700468


A friend who works for the DWP once said to me 'if you're working tax credits is nothing more than an interest free loan'. Simplistic I know but in my case it is true. Early in the tax year I often get limited work and tax credits, usually as the year progresses I land more work and my TCs get cut - the following year I get hit with an overpayment and have to pay it all back.

Regardless of whether or not it will cause an overpayment, the OP must report their change of circumstances. Plenty of people claim tax credits and don't end up overpaid. It depends entirely on their individual circumstances. Plenty of people also update their changes without any issues.

trishandbubs

Report the change immediately this will mean that your award will be re-evaluated in year to stop any possible over payment. You won't be fined or have any penalties but as already stated you have an obligation as part of receiving tax credits to inform HMRC of any changes within 30 days of them happening.

sheramber

You are making things more complicated than they are by worrying about things that will not happen.

When you claim tax credits the award is first calculated using your income from the year before- in your case claim for 2017/18 calculated on income for 2016/17

Once you have you award notice you then contact hem and advise of your estimated income for 2017/18 and, if that income figure is higher you will receive notice of a reduced amount of weekly payment.

They will work out what you are due for the year on your amended income, take off what you have already been paid and the balance payable will be divided into weekly payments for the rest of the year.

There will be no fine or penalty.

Just make sure that if your income changes you tell them immediately, so that your payments can be recalculated if necessary.

System

sheramber wrote: »

You are making things more complicated than they are by worrying about things that will not happen.

When you claim tax credits the award is first calculated using your income from the year before- in your case claim for 2017/18 calculated on income for 2016/17

Once you have you award notice you then contact hem and advise of your estimated income for 2017/18 and, if that income figure is higher you will receive notice of a reduced amount of weekly payment.

They will work out what you are due for the year on your amended income, take off what you have already been paid and the balance payable will be divided into weekly payments for the rest of the year.

There will be no fine or penalty.

Just make sure that if your income changes you tell them immediately, so that your payments can be recalculated if necessary.

That's what I thought yesterday and then made them know my estimated income figure for 2017-2018, it's actually more high than 2016-2017 so my reduced amount of weekly payments amended award is on its way.

And yes, you are right, I was thinking of my worries and definitely I've been exaggerating.