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Tax credits, income disregard rule help.

6 replies

WeCameToDance · 27/02/2019 15:16

Hi all, wondering if anybody could clear this up for me. As tax credit renewal date looms forwards I thought I would compare whats likely to have been earnt this year to last year. There is around a £700 increase in pay for this year. How does the disregard rule work? Am I going to be stung with an overpayment for the year or will the disregard cover this?
Thank you to anyone that is more knowledgeable than me and can answer this for me.

OP posts:
BitchQueen90 · 27/02/2019 15:22

I'm not 100% sure but I was told last year by an advisor that it was £2000.

peppogirl · 27/02/2019 15:36

Pretty sure when I had to increase mine it was 2500

Birdsgottafly · 27/02/2019 15:49

A quick Google says £2,500.

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WeCameToDance · 27/02/2019 15:58

Thank you everyone, even @Birdsgottafly Grin
I saw the £2500 bit and read the article. Thats where I got confused, what exactly happens? Is it literally that they will only claim back overpayment if your income exceeds that £2500 or am I reading it wrong?

OP posts:
Sanch1 · 27/02/2019 16:08

They'll still claim it back if you've been paid over, but its my understanding that the £2500 rule just means that you dont need to notify it within the year, and it is picked up at renewal. Last year I had been paid a small amount over and they just reduced my first few payments of the new tax year.

WeCameToDance · 27/02/2019 16:15

Ahhh ok, I see @Sanch1. That makes more sense.

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