Tax rebate but what about telling the Tax Credit office?

louidog

I am still in shock but hubby got a nice tax rebate this week as he has been paying the wrong tax code for about 3 years!

Now I am a born worrier so this has got me in a panic over Tax Credits. A few years back we were told they had over paid us and we therefore had to pay back the amount outstanding from our monthly allowance.

The question is (or should I say my worry is....) do I have to tell the Tax Credit people we have got this Tax rebate? Will they rake it all back saying that we have been given too much Tax Credit again?? Do both the Tax office and the Tax Credit offices talk to each other and if so I won't have any worries as they will have sorted it out between them?

Heellllllppppp!

hotblu

Hello louidog,

I have good news for you... when claiming Tax Credits (both CTC & WTC) Tax Credits Office base your income on your gross pay (which is total earned before deductions). That means aslong as you declared the gross amount it is irrelevant what tax you paid. Basically they are already taking the maximum of your earnings into account so cant penalise you for a rebate. Tax Credits Office has an automated discrepancy list generated each year to verify income supplied by customers which is done through PAYE & SA departments, but this shouldn't affect you aslong as gross amount is being declared.

HTH

Regards,
Hotblu

louidog

Really? So I can stop worrying now?
Thank you soooo much hotblu

Phew!