Do you tell the tax credits people about your annual bonus??!!

jay1jay

Rubyshoes, its a £25k disregard on an increase in earnings from the preious year. So in the example Hotblu gave, if you earned £16k in 06-7, your award for 07-8 wouldnt change if you earned between £16k and £41k. If you gave a lower estimate for 07-8 of £10k, this is outside these limits and so if your earnings change bey £1 above this you could be overpaid. Each award notice shows the levels when you need to report a change in income. For example, "tell us if you expect your income to rise above £41k or fall below £15.5k for the year". If you can manage it is best overestimating your income, as if they dont pay you enough you will get a lump sum at the end of the year. If you under estimate and get paid too much you will end up owing them. HTH