Working tax credits

Claddah85

Hi I am just wondering is Working Tax Credits paid in advance or arrears?

peteuk

In theory in advance, eg it takes your previous years Salary and tax info and then calculates the amount of payments you are likely to receive.  It then is recalculated at the end of the tax year to see if it was right/wrong. 

I am going to assume that this is because UC is paid in arrears eg assessment period 08 Feb - 07 Mar payment is made in arrears approx 7 days later. 

Yamor

They calculate your expected entitlement for the year (or each relevant period if your circumstances change during the year), and then divide it over the number of payment dates you have in that year/period.

So, depending on when your payment dates fall, you could be getting paid in advance, in arrears, or somewhere in between.