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Tax credit confusion

3 replies

Babyduck3 · 04/06/2019 12:18

Tax credits have always confused the hell out of me so I might be been a bit dumb with this one....
My OH got a new job, his wage has gone up by a fair amount, tax credits want to base this year's payments on last year's wage, from his last job, which would probably end up in a over payment as he's now earning much more, and also he does regular-ish overtime at time and half which I want to factor in so we won't end up owing loads back.
Am I right in thinking I can base this year's tax credit payments on a estimate of his earnings for this year? I rang tax credits and they said it's not possible but I'm certain we did it before to factor in overtime, the lad I spoke to didn't seem to know much though, so I think he may have got I wrong...Am I right to try and base it on a estimate, or let them base payments on last year's wage? Confused

OP posts:
SapatSea · 04/06/2019 13:14

Yes you can estimate. You can also go into your account online and adjust all your figures as the year goes on. I do this as my self employment comes in sporadic bursts. Also we ususally put in an esitmate which we adjust once we have done our tax returns.

I was told the same as you a few years back when I phoned up to report unexpected income from work I had gien up on being paid for and ended up owing several thousand pounds

ElGuardiandenoche · 04/06/2019 14:07

Yep! We’ve done it this year. My husband has gone from earning £30k before tax to £21k before tax. What we did on the phone was declare the £30k for the renewal and they put that through and then we did an amendment for £21k.

I then signed up online and they are now paying me the higher amount.

Babyduck3 · 04/06/2019 17:26

Thank you! I knew it was possible but the lad I spoke to was adamant it could only go on last year's wages, I honestly don't think they understand the system, not that I could blame them, it seems beyond confusing!
I will get online and amend the details. I didnt know we could change the estimate during the year so that's good to know if the overtime drys up! Thank you :-)

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