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Tax Credits Question

(4 Posts)
Linnet Sun 02-Mar-14 19:08:50

The Tax Credits say if you know your income for the year is going to be higher than you thought to let them know as soon as you know.

I have worked out that our income for the year 2013-2014 is going to be more than I thought it would be when I did the renewal back in July. I think therefore we will have to pay some back, which obviously I'm ok with as it's happened before and they just reduce the payments until it's paid back.

If I was to phone them tomorrow and tell them that our income is going to be higher will they recalculate and cut our payments now? What if the overpayment is so big that our payments are reduced to zero? (I don't know if it would be I'm trying to think worse case scenario) Will they leave us without any payments and would we have to wait until they restart sometime later or would they just reduce it enough that we would still be left with something.

Also I know that my income is going to be lower for 2014-2015 due to restructuring at work, should I tell them this now or wait until it's time to do the renewal?

Thanks

Linnet Sun 02-Mar-14 22:11:16

I think I'll wait until end of March when I have both our payslips before I phone them to update. I'm not entirely sure I've worked out dh's properly so I'll wait and see.

Does anybody else phone before the renewal packs come out to update?

elizabethsmum Mon 03-Mar-14 14:15:29

I think as it is so near the end of the financial year now it is probably worth waiting until you have your P60's in april as it is only going to be another month until they are through. I think I may have phoned up before the renewal packs came out before when I thought that the years calculations were going to be off but as you are soon going to have the details in front of you a month now would not make that much difference if you at least wait until then. Unless it is a massive increase it would probably not make much of a difference to the award for 2013-14 but might make a difference to the start of 2014-15 award in which case you would be overpaid for the first part of the new financial year IYSWIM? sorry not very clear! someone with better advice will be along soon!!

elizabethsmum Mon 03-Mar-14 14:17:12

with regard to the 2014-15 award will you know more by the time the renewal pack comes out- might make more sense to leave that until then??
otherwise you may be in the same predicament?

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