Tax credits and income

milliescrazyhouse

Can anyone advise where I stand with the following:-My husband is likely to earn more this year than the estimate I gave in April by approx £1000-£1500.
He changed job last year finally securing full time employment,whilst I am a receiving carers allowance.
We have 3 children with 1 receiving the disability element.
His earnings are as follows:-

16/17 £7425
17/18 £11377
17/18 estimated £17000 in April

If any other info is needed please just let me know,many thanks

Darksparkle

I assume you mean 2018/19? Call them and update your income, they'll readjust your claim.

milliescrazyhouse

Thank you Darksparkle,Yes sorry 18/19,I will update income online,but am worried as we have received just over £90 in working tax credits(the total for this tax year) and if we will have to pay for dentistry we have just had,with the rest as child tax credits.
Also if there will be a big drop in our award.

Darksparkle

Tax credits will reduce by 41p for every £1 earned so an additional £1500 will reduce your claim by £615.

On an income of £18,500 youre no longer entitled to an NHS exemption certificate so when it runs out you won't get another.

calcotti

Not sure if this is right. If income is now £18,500 aren't they going to get the £2,500 discount (for this year only) bringing the income used in the calculation down to £16,000 which is then below the £16,105 income threshold for Child Tax Credits only which means that none of the income is taken into account. Obviously next year the £18,500 will be used and a deduction from the maximum award will be made.

Tax Credits have always been very confusing!

Darksparkle

calcotti wrote: »

Not sure if this is right. If income is now £18,500 aren't they going to get the £2,500 discount (for this year only) bringing the income used in the calculation down to £16,000 which is then below the £16,105 income threshold for Child Tax Credits only which means that none of the income is taken into account. Obviously next year the £18,500 will be used and a deduction from the maximum award will be made.

Tax Credits have always been very confusing!

As I mentioned on a previous post you commented on, the £16105 threshold doesn't apply as it is not a CTC only case.

milliescrazyhouse

Thanks Darksparkle, as far as I!!!8217;m aware our award is currently based on £17859(£17000 for my husband and £3359 carers allowance for me) with the £2500 disregard,due to the change in earnings from last year,so I assume adding the extra £1500 will mean they will deduct our award by £615 this tax year.
If I!!!8217;ve got that right at least I know where I stand,

Can I just check if NHS entitlement will still run till the end of this tax year,or will it end straight away.

Darksparkle

milliescrazyhouse wrote: »

Thanks Darksparkle, as far as I!!!8217;m aware our award is currently based on £17859(£17000 for my husband and £3359 carers allowance for me) with the £2500 disregard,due to the change in earnings from last year,so I assume adding the extra £1500 will mean they will deduct our award by £615 this tax year.
If I!!!8217;ve got that right at least I know where I stand,

Can I just check if NHS entitlement will still run till the end of this tax year,or will it end straight away.

What's the expiry date on your certificate?

milliescrazyhouse

We never received a card this year as far as I can remember,although we were packing to move at the time so can!!!8217;t say for sure.

As for the amount I assume it is based on,this is only a guess,2017/2018 total income was £14616.
2016/2017 was £10650.
This years has been estimated as £20359 currently until I update with the extra income.

With the £2500 disregard I kind of get lost.

Because the last award notice had £90 WTC I have assumed we could get NHS exemption.

Mollycat13

Re. NHS exemption.

If you put your details into the following link, it will let you know if you hold a current exemption.


https://services.nhsbsa.nhs.uk/check-for-help-paying-nhs-costs/start-exempt

milliescrazyhouse

I did check on there,but it couldn!!!8217;t find me
I know we had the £2500 disregard last year due to the job change in December, we estimated £15300 and earned £14616.
I assume the £20359 estimated they will disregard £2500 this tax year.

Just wish the award notices were easier to understand.

I just worry in case we have a penalty if we are not entitled.