To ask a CTC question?

[gardenangels]

Turns out I have been underpaid in the 2015-2016 tax year. The amount is under 5k. However the underpayment will be repaid and taxed in the 2016-2017 tax year. P60 has already been issued. Which tax year should I put this amount in for CTC?

CTC go on your earnings and you earned that money in 2015-2016 period.

If you didn't know that you'd been Underpaid, then you haven't made a false declaration.

You should still inform them, just to cover yourself. Do you claim HB? It might make a difference.

Don't claim HB. Is there a rule about them ignoring the first 5 k over your estimate?

My P60 is 1k under my estimated but this amount makes my 2015-2016 income 4k above my estimate. Only just found out about underpayment...

You would declare it for the 16-17 tax year - that's the year it's being paid and taxed in (at least that's what I'd have advised you when I worked there).

To elaborate HMRC define employment income as '...any earnings from an office or employment received in the tax year...'

You haven't received this money in 15-16. But you'll receive it in 16-17.

www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm04102

Guessing it will appear as part wage on the 2016-2017 p60? If so include in 2016-2017 wage calculation and phone to tell them wage increase for this year. Don't tell them about overpay or anything as u will just confuse them, just think.of it as 5k wage increase for this yr