Have been claiming tax credits for 21 months since DS was born. First year was fine because I was getting higher maternity pay. Second year was ok, they based on actual projected income rather than the previous year, as I was on unpaid mat leave. Our actual income was even lower as I didn't realise you could disregard mat pay, and DH earned less than expected. So I gave them this year's projected income - twice last year's as well as childcare costs halving.
I expected tax credits to shoot right down and panicked a bit when I read the award which is about 5x what I expected. I called up thinking it was a mistake and worried about an overpayment but no! Apparently they base on last year's income regardless - unless it goes down, but not if it goes up by less than 25k! I feel we are being given money we don't deserve, or need, and the government is completely bonkers! Now we are poor (debts) so this will help by paying it off, and also can put DS in nursery an extra day so DH can work more, but really - what was the government thinking of? This just makes no sense at all.