If your predicted tax credit amount is different to actual do you tell HMRC?

50Twuncle wrote: »

When was the limit of £2500 set ?.

https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-the-disregard/#History of the income disregards

History of the income disregards
The income disregard, for rises in income, from 2003-04 to 2005-06 inclusive was £2,500. Its purpose was to provide a ‘buffer zone’ in which a family’s income could increase during the course of a year without affecting their tax credit entitlement. Though considered generous at the time it was introduced, the £2,500 buffer zone proved insufficient to prevent hardship to families whose income increased above that amount. Therefore in 2006-07, in a bid to reduce the volume of overpayments arising from increases in income, the income disregard was increased quite dramatically to £25,000.

That was probably the most significant of the changes announced in the Pre-Budget Report on 5 December 2005, and the overpayment figures relating to the 2006-2007 tax year showed a significant fall in both the number and amount of overpayments. HMRC have attributed this largely to the increased income disregard.

The effect of the increase was to bring greater certainty for claimants in a system where a major problem had been the sheer unpredictability of what families could expect to receive. The June 2010 Emergency Budget announced further changes to the disregard both by introducing a disregard for falls in income of £2,500 from April 2012, but also by reducing the disregard for increases in income from £25,000 to £10,000 from April 2011. This was further reduced to £5,000 from April 2013, and from April 2016, the disregard for increases in income is back to the original figure of £2,500