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Child Tax Credits question for all you experts!

4 replies

Cantreasonwithunreasonable · 22/03/2021 21:55

It's financial year end and I have my annual income on my latest payslip.
I estimated a salary figure (let's say eg. 24k) to base CTC on.
My actual figure is £23k taxable, £26k Gross/Pensionable.

Which figure do they use? I ended up doing lots of overtime due to Covid during the past year, and I'm trying to work out how much I'll be paying CTC / HMRC back.

I'm new to this (divorced two years ago, went part-time after 17yrs ft).

Thank you.

OP posts:
Imnotbent · 22/03/2021 22:01

23k tax credits only use taxable income. They allow 2.5k over. If you estimated 24k you could earn 26.5k taxable with no overpayment.

Cantreasonwithunreasonable · 22/03/2021 22:21

Thanks.
So to clarify, they base my monthly payments on the salary I earn AFTER I've paid into my pension / NI contributions etc? Not the gross figure on my P60?
I'm not sure what you mean about the £2.5k either?

OP posts:
TalesTheCat · 23/03/2021 00:29

It's your salary as it appears on your p60 figure. I think you can only deduct £300 for your pension. (You deduct all your pension then take £300 away from pension amount and readd what's left over as other income. They will have your wage out from RTI

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Cantreasonwithunreasonable · 23/03/2021 07:14

I know they use the salary totals, I can wait until they send HMRC the figures, but I like to contact them to stay bang up to date. I don't want to owe them.
Still not clear which total they use -
Gross salary total
Taxable salary total.

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