When to inform Tax Credits of pension starting?

skycatcher

Hi,

I am due to get my company pension in Nov 19. My wife and I are currrently in reciept of WTC and self employed (on a low income). My pension will be around £3000 per month before tax. When should I inform the Tax Credits people of this expected income as I dont want to get over payements?

Thanks,

Sky.

[Deleted User]

You don't need to tell them you are getting it until you get it. But you can update your yearly estimated income at any time.

skycatcher

_shel wrote: »

You don't need to tell them you are getting it until you get it. But you can update your yearly estimated income at any time.

Thanks for your reply....if i dont tell them until i get it will this mean i will have been overpaid from April to Nov and i will need to refund them?

calcotti

Tax Credits are not my strong point but the appropriate time to tell them would seem to be when you get your next Tax Credit renewal pack. You will be confirming your income for 2018-2019 and estimating your income for 2019-2020. For the latter you will need to take into account your pension income from November.

When you get your pension are you intending to reduce or end the self-employment? If so you may no longer be entitled to WTC from that date anyway.

Darksparkle

You should inform them in April, not November.

skycatcher

Darksparkle wrote: »

You should inform them in April, not November.

Yeah - that was my thought seeing as they run financial year wise.

Icequeen99

calcotti wrote: »

Tax Credits are not my strong point but the appropriate time to tell them would seem to be when you get your next Tax Credit renewal pack. You will be confirming your income for 2018-2019 and estimating your income for 2019-2020. For the latter you will need to take into account your pension income from November.

When you get your pension are you intending to reduce or end the self-employment? If so you may no longer be entitled to WTC from that date anyway.

The renewal pack doesn't ask for an estimated income for the new year only for the income from the previous year in order to finalise. He will need to phone up and give an estimated 19-20 income in April. If he waits until November he will have an overpayment.

IQ

calcotti

Icequeen99 wrote: »

The renewal pack doesn't ask for an estimated income for the new year only for the income from the previous year in order to finalise. He will need to phone up and give an estimated 19-20 income in April. If he waits until November he will have an overpayment.IQ

My mistake, it's a while since I saw a Tax Credit renewal form. I thought there was a question for if you thought your income was likely to change.