separation and tax credits

largebloke_2

Hi

Myself and my wife are full time self employed. We claim tax credits as a couple. We are going to separate later this year and the children will live with her. I will seek employment (around 15-20k year) and will no longer be eligible for tax credits but am worried about having to repay tax credits paid in the first quarter should my income rise by 15K later in the year ( I have heard about the 25k buffer/disregard - will this apply).

I assume the best thing to do is inform HMRC when we split. However I have just received my end of year review pack and was pondering the best way forward...any advice appreciated.

LB

hotblu

Hello largebloke,

First off please complete your renewal pack as this is to confirm your circumstances/income for the previous year (07/8). Once you have completed your renewal your cy claim will be based on py income, you will be able to earn that income again this year and the 25k disregard would apply, therefore getting a paid job at 15k shouldn't take you over to cause o/p. Aslong as you end claim the date you seperate their should be no other reason for o/p.

HTH

Hotblu

Ps, what is YOUR income for 07/08?

mitchaa

largebloke wrote: »

Hi

We are going to separate later this year

LB

That's a bit of a strange remark, do you have a crystal ball

System

mitchaa wrote: »

That's a bit of a strange remark, do you have a crystal ball

Perhaps LB and his missus are going to have an amicable separation and are waiting until the time is more suitable for the kids. Perhaps the kids are doing exams and they don't need the stress of a parents separation in the middle of them.

My sensitive BIL decided the best time to "come out" and separate from his wife was in the middle of his daughters A levels.:mad:

largebloke_2

Hi

And thanks for your replies.....Good news for me Hotblu :j 1 less to worry about!

My 07/08 income is not high (infact should be below personal allowance).

Pam17 is right............;)


LB