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Another tax credits one - Will I owe them money?

(2 Posts)
PeppermintLatte Wed 18-Jun-14 09:45:09

Hi,

I renewed my tax credits last week, but unfortunately the guy I spoke to appeared to have no clue at all and couldn't help me with my query.

I have two problems - Firstly, last year I earned �4000 profit (Part time, self employed, child in nursery, single parent) I assume they based this years on that? When I renewed last week I had earned �4200. I know it's only �200 more, but will I owe that back?

Secondly, I just qualified in something else. Looking at my books I believe i'll earn about �1000 more in profit this year. So when it comes to renewing my tax credits next year I will be giving them an actual figure of around �5200/�5300. Shall I ring them again and ask them to base this year's award on that? Does anyone know if this will reduce my WTC and CTC payments this year? Not sure if it goes into a new payment band once you earn over a certain amount, i'll struggle at first if it does and I am terrified of accruing an overpayment.

Can anyone advise?

They do take last years and this years income into account BUT tax credits only start getting reduced above an income of £6420 (or that was last years threshold) so if your total income is below this figure you will receive the max award with no reduction.

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