Advanced search

need to pay back working tax credits?

(4 Posts)
CagneynotLacey Tue 22-Apr-14 12:45:51

I'm self-employed and had to estimate my earnings for the last tax year. I earned about £2500 more than I estimated. I think I will have to pay this amount back - is that right? I had thought there was some kind of income rise disregard but maybe that is only for people who are employed.

I have phoned the working tax credit office twice to try and work out the system and get the figure updated but I'm none the wiser and they tell me that the figure can't be updated until I am sent my renewal pack. I think that means the overpayments will continue until then.

Can anyone shed any light on it? I'm not thick but I find the system very hard to understand. confused

TheGirlFromIpanema Tue 22-Apr-14 13:07:20

Income disregard for 2013-14 is £5k I believe, so no, you won't have to pay back any 'overpayment' you received.

Simply state actual figures when renewing. It's how the system works so don't worry smile

CagneynotLacey Tue 22-Apr-14 13:31:27

So, I should give an actual figure rather than an estimate for this tax year? And, that way, the income disregard kicks in?
HMRC said I would definitely need to pay back any overpayment for 2013-14 because I had underestimated my income. From what you're saying, Ipanema, that wouldn't have happened if I had stated actual income.
It's fair enough to pay back overpayments, but annoying that it only applies to self-employed people. And even more more annoying that they continue to overpay me until the renewal packs are sent out. I received mine in June last year.

starlight1234 Tue 22-Apr-14 19:10:04

Have you informed them of your change of income.... Make sure it is documented..they have 30 days to adjust from that date otherwise you are no liabel to payback any over payment for 30 days since you informed them..

I don't know anything about income can't comment on that part

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