Worried about renewal

gemstu

Hi

Can anyone help. I received my new tax credit pack for the 1st time since beginning my claim. The only thing is, that when i claimed in April last year i had to declare what my earnis were in 06/07. They were 0 as i was out the country. I then started working full time and was paying childcare which i declared. Now they need to know what i earnt in 07/08 which is fine but i am now worried they will say they have overpaid me even though they seem to work a year behind, so therefore my claim was accurate at that time. I'm worried as i pay a lot of childcare and without that help i would not be able to afford to work. Does this make sense??

jai_2

All tax credit awards are based on previous years income. Then after the current years income is known...usually after each April, the award is amended using the current years income. If your income is higher than the previous year then you may have an o/p but this years award will be amended to reflect this. As for childcare the working tax credit does provide a child care element to meet these costs. Its about 80% towards the expence but the child care provider has to be registered as such

hotblu

gemstu wrote: »

Hi

Can anyone help. I received my new tax credit pack for the 1st time since beginning my claim. The only thing is, that when i claimed in April last year i had to declare what my earnis were in 06/07. They were 0 as i was out the country. I then started working full time and was paying childcare which i declared. Now they need to know what i earnt in 07/08 which is fine but i am now worried they will say they have overpaid me even though they seem to work a year behind, so therefore my claim was accurate at that time. I'm worried as i pay a lot of childcare and without that help i would not be able to afford to work. Does this make sense??

Hello gemstu,

First off aslong as you didn't earn more than £25,000 in 07/08 you will not have been overpaid. Reason for this is because your claim was based on your income for 06/07 which was nil, you would have had a disregard of £25,000 for 07/08.
You need to get your income details for 07/08 and complete your renewal asap. That is to make sure your cy (08/09) entitlement is correct. Again to confirm aslong as you haven't earnt more than £25,000 in 07/08 your fine.
Just to mention how this years award will work... once your renewal is complete for 07/08, the income you use will be bought forward to the 08/09 tax year and used to calculate your entitlement. Again, you will be able to earn what you earn in py, and will be given the £25,000 disregard again. Hope I haven't confused you too much.

HTH

Regards

Hotblu