Tax Credit estimated income for the year

alfiesmum

I received a letter last week saying what our provisional tax credit payments would be for this tax year. They are based on (their) estimate of £19533 as our income. Our actual income for the past tax year was £18420. Yesterday I received my renewal pack, and they want to know last years actual income. When I tell them will our tax credits for this be adjusted to my correct actual figure, or their estimated figure of what they think we'll earn?

I am asking because I read on here recently (can't for the life of me find it now!), that if you tell them you'll be getting lower than their estimated income, then any single penny you actually earn over that will be classed as an overpayment.

Can somebody explain this to me please, I'm going round in circles trying to find anything out about it

Thank you so much
alfiesmum
x

kerryallc71

hih !

im confused as well about all of this tax credits business as well , i thought i knew but i did not .. ive been searching the internet about this disregard ..

i have found this though .. here is a link ..

http://www.disabilityalliance.org/tax5.htm

it explains it pretty well , i think ..

see you from kerry ..

hotblu

alfiesmum wrote: »

I received a letter last week saying what our provisional tax credit payments would be for this tax year. They are based on (their) estimate of £19533 as our income. Our actual income for the past tax year was £18420. Yesterday I received my renewal pack, and they want to know last years actual income. When I tell them will our tax credits for this be adjusted to my correct actual figure, or their estimated figure of what they think we'll earn?

I am asking because I read on here recently (can't for the life of me find it now!), that if you tell them you'll be getting lower than their estimated income, then any single penny you actually earn over that will be classed as an overpayment.

Can somebody explain this to me please, I'm going round in circles trying to find anything out about it

Thank you so much
alfiesmum
x

Hello alfiesmum,

Once you complete your renewal pack the figure you declare will be used to finalise your py (07/08) award. If you say this amount is lower than the current estimate held you may recieve a one-off payment for that year. The figure you give will then be bought forward to the cy (08/09) to calculate your entitlement for this year. The way the disregard work's is as follows: once your renewal is completed and the income has been bought forward to the cy, you can earn that amount again this year, plus a further £25,000 (the disregard) and your cy entitlement wont change and no o/p will occur due to income increase. However, your next years award (09/10) may then reduce depending on how much you earn. Hope this makes sense and haven't confused you too much.

Regards

Hotblu

alfiesmum

That's brilliant, thank you so much to you both for taking the time to help me out.

It's like being in school again, and I think I've just understood what the Maths teacher is trying to tell me!! :rotfl:

Thank you
alfiesmum
x

christine666651823

can anyone tell me what will happen with tax credit renewal,having earned about £300 more than the estimate for 07/08

hotblu

christine666651823 wrote: »

can anyone tell me what will happen with tax credit renewal,having earned about £300 more than the estimate for 07/08

Hello,

You wont be overpaid for 07/08 due to the income disregard. However, cy payments may drop slightly. Do your renewal asap to make sure your recieving correct cy payments. If you have all income details you can phone it through.

HTH

Hotblu

christine666651823

thanx for your help hotblu,will try get it sent away tommorow