Really confused about tax credits

[LittlePickleHead]

So confused and haven't been able to get through to tax credits helpline. Just thought it might be quicker also posting here and seeing if anyone else has got a idea how this works.

So I understand about the credits being awarded on the basis of your previous years salary, however you then have to also update them as to change in current circumstances.

So last year (09/10) when DD was born we earned around £48k between us as I only started working in feb 2010 part time. So we got the standard £80ish a month, which then dropped to £40 when she was one.

I've recently increased my hours so that now our estimated 10/11 combined income is over £60k. I thought this would mean our award would be stopped and we'd have to pay back the money we have already received since April, which I was prepared to do.

But I have just received our updated awards notice and it seems the credits are carrying on the same as before, but surely we are earning too much?

Does this mean that come April when we confirm our incomes we will have to pay back the entire years worth of credits? Or does it mean that we just won't get anything next year?

If we have to pay it back I'd just rather not receive them in the first place.

Anyone got a clue?

Child tax credit (if I am getting this right), is for everyone with a child, regardless of income (until the government change all of this), it's the same as child benefit. Working tax credit is the one that is dependant upon your income, the more you earn the less you get. The cut off is about 25k (I think)

I'm sure there is a cut off? Perhaps I've got that wrong then. Seems a bit silly if not, we don't need £40 a month but will be tough to pay back over £500 in one go if they ask for it back...

Belle that's not right. There is an upper limit for income but as we're nowhere near it, I'm not sure what it is!

Littlepicklehead, I'd give up trying to get through now and leave it a couple of weeks (there have been major problems with renewals this year I think). Meanwhile put the money into an savings account and don't spend it!

No, the current government want it to be 50k but I don't think it's been introduced yet. Your best bet is to stick it into a high interest account, then if they do (and it's doubtful) ask for it back then you get to keep the interest.

I didn't think they had brought this in yet becky??

yup, 50k

OK i'm just confused because when I was doing the change of circumstance claim I used entitled to and it said we were entitled to nothing. Argh the system is so stupid. I will put it into savings, if we get to keep it then I guess it's a bonus!

Is it curently £50k belle?

Sorry followed link, seems it is. So we are definitely not eligable, why on earth carry on giving us money?

It looks like it. I really don't think that this has been put into place yet though, the government said that they wanted to put in a threashold. Your best bet is a high interest account, stash it and if they do ask for it back you get to keep the interest. The best time to call them is about 4pm, I've never had a problem getting through on the phone.

From what you've posted, I would say that you are entitled to continue receiving payments. You are right to update your income but there is actually an allowance built in which means your income can increase within a year and it doesn't cause an overpayment (due to the assumption that most people will have a payrise)

So, your income has been updated but the award will still be paying based on the previous lower income. This will then update in April and your payments will likely stop at that point. If you check your award notice, it should show projected payments for 2011-2012.

Hope that helps :)