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Tax credits and overtime?

(2 Posts)
Dilligaf81 Tue 01-Nov-16 22:28:04

Currently receive Wtc for 4 children (£80 a month) but last month and this month I have been doing so overtime due to crmhronic staff shortages. What I hadn't thought of is the impact on my tax credits.
I earnt an extra £200 in october and probably £400 in November. My contract hasn't changed and neither has my basic salary but can't find a definitive answer of when I need to tell tax credits. Thanks

pinkunicornsarefluffy Thu 03-Nov-16 18:28:37

Tax credits are based on your annual income, so if it goes up, you will get less tax credits. If you are paid too much WTC, then you will be required to pay it, however you can earn up to £2500 more than the previous year without having to pay it back.

So I would say, if it is going to go over that then ring them now and tell them your new estimated income, if it isn't then don't. They won't be able to reclaim it, but they will obviously reduce next years payments as it will be based on a higher income. I would ring them in April when you have your final payslip for the 16/17 tax year and give them your estimated increase then, so that they don't overpay you from the start of the year.

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