DH (self-employed) has just lost a contract which had provided 95% of our household income for the last two years Times are tough in his industry so although he's busy pitching new clients, our income is likely to drop substantially for at least the next few months. (I'm looking for work too but work in the same recession-hit industry!)
I was wondering if there was any point trying to claim tax credits for the time being (we've been over the threshold for last few years). But don't they base it on last year's income? Has anyone managed to successfully claim after a sudden big loss of income?
Put in a claim they can only say no. Do you claim any child tax credit? Dh is self employed and we claim both. I think they understand that self employment income fluctuates as I know we usually estimate our income to them and tell them later our actual income when income tax return is done.
Put in a claim, on the claim form it only has room for last years income so you'll get an award notice showing that your award is nil. Then you can call up and give your current year estimate and your award will be recalculated. Beware though, if you give a reduced current year estimate and then end up earning more than you thought you WILL be overpaid
We don't claim CTC or WTC as we have been over the threshold for both. I have literally no idea what our income will be next tax year, it depends on so much, DH might get lucky and pick up a load of new clients, or he might really struggle, or one of us might end up getting a job.
You can claim WTC and CTC self employed ring them up the helpline is really genuinely very helpful. They actually will assess based on your estimate of what you will make this year if your income has changed dramatically but they will only backdate WTC one month so don;t delay calling them.
As Claire says they will send you forms for next year based on your estimates for this so make sure you put your best estimate otherwise you will end up getting over paid next year and having to repay it.