tax credits and overtime

fkelanne

im a single parent of two, i work 20 hour a week, i get £435 pay every 4 wks, i get about £160 a week child tax and working tax 2gether. can i work overtime it would only be for 1 week until a girls comes off the sick, and would only be an extra 10 hours.any help please

Kimitatsu

You can work it, but bear in mind that it will result in a small overpayment at the end of the tax year (april 2008) that will be clawed back next financial year.

As long as your income does not vary by £25,000 a year you are not obliged to inform the tax office but you will be overpaid.

fkelanne

will i have to pay it back over the year or all of it in one go?
also should i be receiving a new tax form or somethink like that? iv only been working 6 months so i dont no how it works.

Kimitatsu

Overpayments are usually taken over the year, so to be honest it will be a tiny amount!

You will recieve in the post in the next few weeks a form giving you your provisional award for next year and then at the end of April you should recieve a form which asks you to confirm your income for the tax year April 2007 to 2008, only then does this years tax award become final. As long as you have not earned more then £25,000 more than the award was based on then they will just claim any overpayment through next years award.

So dont worry too much about it

jay1jay

If you havent earned £25k more than you did last year you won't have an overpayment at the end of this tax year at all. But, next years award will be based on this years earnings. This is because the first £25k of any increase in income from one year is disregarded, but only for that one year. One weeks overtime shouldn't affect your claim at all! (Unless they're gonna pay you £1000s for it?)

bestpud

Yes, that is correct.

Don't worry about it as you will not have an overpayment unless you get paid over £25000 for that weeks work!

Kimitatsu - it used to be like that but it is not the case any more. A claimant can get a £24950 pay rise during the year and still not face an overpayment at the end!

fkelanne

i wish, thanks all. an extra £100 at the 14th of this month will be great. and now i dont have to worry about them taking it off me nxt month.