Tax Credits & Help to Save Help
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[Deleted User]
Posts: 0 Newbie
Hello, it looks like I will be getting a promotion at work and this will push my 18/19 earnings £2500 above the 17/18 figure that they use for calculating my tax credit award (single parent with some childcare costs). Is the best thing to do now is call them to cancel my tax credits as I don't think i'll be entitled to them next year and I don't want to ow them anything.
Also, I opened up the Help to Save and have £100 in there, what will they do? Stop me from putting anymore money in?
Thanks.
Also, I opened up the Help to Save and have £100 in there, what will they do? Stop me from putting anymore money in?
Thanks.
0
Comments
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Bearing in mind that we are already more than half way through the tax year you will only have your increased salary for half the year - will that make the £2,500 difference or have you based your calculation on a full year?
Let's say you earn £15,000 and your current award is based on that.
You get a pay rise of £3,000 half way through the year.
Your earnings this year are £16,500.
Your earnings next year are £18,000.
At no point has the £2,500 limit been breached.
Whatever the totals I would let HMRC know the change so that they can recalculate your current Tax Credit entitlement. It will reduce the risk of an overpayment which has to be paid back.
Once you have closed a Tax Credits claim you will not be able to make a new one if you are in a Universal Credit area. Even if you think you will have no future entitlement it may be better to keep the Tax Credits claim open in case your circumstances unexpectedly change in the opposite direction.
I don't know anything about the Help to Save.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Hello, it looks like I will be getting a promotion at work and this will push my 18/19 earnings £2500 above the 17/18 figure that they use for calculating my tax credit award (single parent with some childcare costs). Is the best thing to do now is call them to cancel my tax credits as I don't think i'll be entitled to them next year and I don't want to ow them anything.
Also, I opened up the Help to Save and have £100 in there, what will they do? Stop me from putting anymore money in?
Thanks.
You can continue in the help to save scheme - the qualification criteria is only relevant to open the account.
IQ0 -
Icequeen99 wrote: »You can continue in the help to save scheme - the qualification criteria is only relevant to open the account.
IQ
Thank you, I have big plans for 2022 :j0
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