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Confused by tax credits.

(4 Posts)
TheSultanofPing Fri 12-Jun-15 14:14:33

I'm hoping somebody will be able to help me with this as I'm confused.

Earlier this year I started as a relief midday supervisor. I didn't call TC straight away as the hours were few and far between, so decided to wait until I got my p60. Tried calling them a few times and eventually got through on 2nd June. Gave them my income (the grand total of £159), and an estimate for 2015-2016 (£800).

A couple of days later we got the renewal pack through, it was already on its way when I called them. My earnings were already on the form as well as DH's, as it was auto renewal. I thought that would mean the payments due to us this year were correct as all the details were right.

Anyway, yesterday we received an amended TC notice, thanking us for letting them know of a change in circumstances, and my payments have gone down almost £50 a month! It seems to be to do with my estimated earnings for 2015-2016, but I didn't think that would make a difference to this years payments. I just don't really get how TC work I suppose.

Oh, and to top it off, I told them DS2 is continuing in full time education, gave them all the details, and they have completely disregarded that. So that's another phone call.

Can anybody explain TC to me please?

TheSultanofPing Fri 12-Jun-15 14:59:59

What I mean is, should 2015-2016 estimated income affect this year's payments?

AndNowItsSeven Sat 13-Jun-15 00:45:40

Yes 2015-2016 income will affects the tax credits you receive after the renewal. £50 a month is a big drop if you will only earn £800 per annum . I am guessing you are near the cut off threshold?

TheSultanofPing Sat 13-Jun-15 09:18:24

Thanks for the reply And.
I would say we are pretty close to the threshold yes, so luckily it won't affect us too much. It just confused me that's all.
There's a chance it may become permanent soon, so hopefully we can have a life free of TC.

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