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When to tell HMRC about future income change
PennyCentury
Posts: 1 Newbie
Hello,
Hoping someone can help me with this slightly garbled problem.
Currently I'm the sole earner in our two parent, two child family. We receive tax credits of approx £500 per month. My husband is a student teacher and will graduate in May. However he won't start work until August (we're in Scotland).
When I renew our claim in April, I'll be asked to predict our income for financial year 2018-2019. If I do this, I think our tax credit payments will immediately reduce, from £500 to around £100 per month, even though, for the first four months of that year, our actual financial situation will be the same as it is now, or worse. We're relocating to a new city where my husband's post will be based, so I'll be out of work for a spell while we move and settle the children in a new school.
Or, do I say there are no changes, and then inform them of our increased income when it actually happens - ie the month my husband starts work? I guess that would mean that tax credit payments would stop completely, but we won't need them by then because we'll have two incomes - but maybe we'd have to pay some back?
I am in a quandary! I'd appreciate some guidance.
Hoping someone can help me with this slightly garbled problem.
Currently I'm the sole earner in our two parent, two child family. We receive tax credits of approx £500 per month. My husband is a student teacher and will graduate in May. However he won't start work until August (we're in Scotland).
When I renew our claim in April, I'll be asked to predict our income for financial year 2018-2019. If I do this, I think our tax credit payments will immediately reduce, from £500 to around £100 per month, even though, for the first four months of that year, our actual financial situation will be the same as it is now, or worse. We're relocating to a new city where my husband's post will be based, so I'll be out of work for a spell while we move and settle the children in a new school.
Or, do I say there are no changes, and then inform them of our increased income when it actually happens - ie the month my husband starts work? I guess that would mean that tax credit payments would stop completely, but we won't need them by then because we'll have two incomes - but maybe we'd have to pay some back?
I am in a quandary! I'd appreciate some guidance.
0
Comments
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If you wait and inform them then you’ll like have an overpayment from the earlier part of the year so really just depends if you’ll then be able to afford to repay it.0
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