New Job 6 month contract what do I tell tax credits?

carolan78

I will be starting a new job on a temporary 6 month contract, chances are this will be all I work this year. What figure do I tell tax credits for my earnings? The 6 month figure or do I double it incase it does extend to another 6 month contract?

vicki_b

we are in the same situation,we give the 6 months figures as this could be the total for 2008-2009....when its getting towards the end of the 6 months,ring up and give a higher figure,they will amend your account

carolan78

Won't I have effectivly been overpaid then? If the contract is extended then I will have earned double my original estimate. This is very confusing lol I haven't worked since having children think the old brain needs a recharge :rotfl:

india

I recently spoke to tax credits about the same thing the said it's better to give a higher figure and get a lump sum back than. a lower figure and be overpaid.

vicki_b

its o.k as long as you keep your eye on it and amend it whenever necessary...you don't always get a lump sum back anyway,not when its in the same 'bracket'

PasturesNew

If you don't tell them and you overpay because you shouldn't have been receiving the money, then you'll get a bill for that overpayment. So your choices are:
- tell them now, only get what you're supposed to have
- tell them when the new year forms come through and expect to have to repay the whole amount of overpayment.

It depends on your personal circumstances which one is financially less suicidal for you... but if you're struggling, then it would be best to tell them now rather than being hit with a big bill when the 6-months is up and things have got tougher.

HappyDuck_2

Read the threads on the £25k inc band (pref on www.hmrc.gov.uk) - that should make it easier.

Basically TCs look at PY & CY inc, then use the lower to give you a higher entitlment. Depending on the figures for both years what impact it will have & if an UP or OP will occur.

As a side note - did you know you will get an extra 4wks of WTC when your job finishes - so thats 7 months WTC for 6 months work!