Tax credits and over time?

bestpud

I am just about to renew our tax credit claim and I'm wondering about predicting over time.

I've always over-estimated our income, in case DH does any over time during the year, and because they used to chase it as an overpayment. Even though they said they allowed £2500, it never seemed to work out that way!

Now though, with the £25000 disregard, do I still need to do this?

DH has just changed his job and as such, we are unable to predict the amount of over time yet. But I'm not sure we actually need to anyway?

What do you all do? Or does anyone know how accurate our prediction needs to be?

Tia

Bestpud

jay1jay

Its £25k above the previous years income thats disregarded, so if I were you, I'd give your estimate for the new tax year (08-9) as the same as you actually earned last tax year (07-8) as your DH isn't likely (I would think) to earn over £25k in overtime. Then, in about Jan/Feb next year, give tax crdits a ring and change your estimate to what you think you will really earn in 08-9 (you should have an idea by then) so that your payments for 09-10 will be based on that new estimate and so take into account any increase there has been. Hope that helps

bestpud

Thanks jay1jay.

Yes, that makes sense. I tend to forget it is based on the previous years income! His basic income is about the same anyway but mine has dropped slightly - not enough to make a big difference though, I don't think.

It all seems so easy and then I read of the problems people have and start to worry about getting it all correct!