Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Tax Credits question.

(5 Posts)

Year 1 amount earned A
Year 2 amount earned B
Year 3 estimated earnings C.

Year 2s award based on amount A. But Year 3s award is based on amount C.

Is that because the estimated is more than amount B? Surely thats not right?

frissonpink Sat 29-Jun-13 11:01:20

Yes, because otherwise you'd be paying it back the year after!

If you'd have estimated the same, it would have been based on B..but because you've said you're going to be earning more, then of course they will reduce your award?

But Year 2 earnings were half of Year 1 and there was no extra money.

So if you earn more it goes down and if you earn less it doesnt change?

frissonpink Mon 01-Jul-13 19:36:01

If you earn less by more than £10k, then yes, they will amend it. But you have to specifically tell them that, or they just base it on the year before.

They always base on the year before's earnings. Stupid.

Maybe someone who has a degree in tax credits ;) might come along, because I've never understood it either!!

DH earns £10k, and my mat pay has we're £500 a month down but not entitled to any more tax credits. Because they class my mat pay as earnings of £2k this tax year. Go figure that one! smile

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now