NHS wage increase and Tax Credits

user123456789_2

Hi. We get tax credits and the income I estimated for 2022/2023 was accurate.

The NHS Wage rise that was agreed yesterday is due to be back dated and we are due to get a one off payment for 2022/2023. Please can anyone advise how this will affect my Tax Credits, as now my income will be higher for 22/23 than I estimated. Will I just pay this back in one lump sum? Thank you

Penguin_

Although it is 'back dated' your income for 2022/23 won't change as you will be paid the money in the 2023/24 financial year so as far as I can see your tax credits for the 2022/23 year shouldn't be affected.

user123456789_2

Thank you. Will the money for 2022/2023 then just add onto my total income for this 2023/2024.

Thanks again for your advice :)

calcotti

user123456789_2 said:

Thank you. Will the money for 2022/2023 then just add onto my total income for this 2023/2024.

Yes. If you expect your 2023/24 taxable income will be more than £2,500 difference between 2022/23 you should inform HMRC. Your current year Tax Credit award will then be recalculated on 2023/24 rather than 2022/23.