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Tax credits advice please...

(13 Posts)
Hermanfromguesswho Fri 08-Jul-16 16:52:28

I've applied for tax credits and they have based my award on income between April 2015 and April 2016... Is there anything I can do if my income is actually going to be less from April 2016 to April 2017 (ie my current income is less) and I should be getting more tax credits?
Or is it always a year behind and I'll get the higher amount next year based on my next years figures?

AugustRose Fri 08-Jul-16 17:04:40

If you have earned less this year they will increase the amount you receive next year - not helpful I know. If you are earning significantly less (I think the threshold for change is £2500 either way) you should tell them anyway, they may change the award or ask for more evidence.

jollyjester Fri 08-Jul-16 17:07:37

Watching with interest as I'm on maternity leave and when I'm in employment we dont qualify but we do now as I'm only on smp.

AnotherEmma Fri 08-Jul-16 17:17:26

OP you need to call the tax credits helpline to explain that your income is lower this tax year and to ask for your tax credit entitlement to be calculated based on this year's income instead of last year's. They will recalculate if your income for this tax year is at least £2500 than last tax year.

AnotherEmma Fri 08-Jul-16 17:20:24

at least £2500 less

Hermanfromguesswho Fri 08-Jul-16 18:06:22

Ok brilliant, thank you. I've not got the official award notice yet, so I'll wait till that comes and then phone to adjust it as salary is more than 2500 less this year 😊

Nottsangel2015 Sun 10-Jul-16 09:10:28

I've been on maternity and told them straight away my income had dropped significantly less (more than £2500) and they adjusted straight away. Also remember you can deduct £100 a week on your next annual review for every week you was on maternity when they do your yearly income. I did not know this until just completed my annual review last week and they explained that N had earned £14k but was on maternity pay for 35 weeks of the year so got another £3500
Taken off which will now up my payments again, just ensure to tell them if it goes back up again, I'm only back part time now so actually my earnings will remain pretty much the same as last year (how depressing to say I was on smp for 35 weeks!)

AveEldon Sun 10-Jul-16 09:23:38

jollyjester - you need to call them asap as they will only backdate your claim by 3mths

AnotherEmma Sun 10-Jul-16 14:35:18

Ave The OP's claim will be dated from the day she made her original application, not from the day she calls to request a recalculation. New tax credit claims can be backdated for up to 1 month (not 3) but that has to be requested when you apply.

AveEldon Sun 10-Jul-16 18:31:12

Thanks for clarifying re backdating
I think it's appalling that they won't backdate for the whole tax year but that's another thread

AnotherEmma Sun 10-Jul-16 18:34:10

They will recalculate for the whole tax year if you applied at the beginning. I don't see why they should give you backdated tax credits for a whole year if you didn't apply for them in the first place!

AveEldon Sun 10-Jul-16 18:39:56

I disagree - if you overpay or underpay with any other aspect of the tax system it applies over the whole of the tax year
Why should tax credits be any different?

AnotherEmma Sun 10-Jul-16 19:46:33

Ave I think we're talking at cross purposes. When I refer to backdating I mean getting tax credits for the period before you applied. I think you're talking about recalculating tax credits which were being claimed and received in the past - that does happen.

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