tax credit question

[ilovecrisps]

due to job losses we are likely to go from a year when we didn't qualify to one with very little income to a year where we would not normally qualify for tax credits again. (assuming we get jobs!!!)

Am I right in thinking that when we have no income we will get nothing but we will get tax credits when we start earning again (based on our previous years tiny income?)

sounds wrong but whereever I look it tells me it's based on previous years income......

No that's not right. Normally the award is based on the previous year's income but if your income has dropped significantly then they will reassess your award without waiting for a whole tax-year to pass first. Call the Tax Credits people as soon as your circumstances change as it takes a few weeks for them to make the changes.

Should add that if you both end up unemployed then there will be other benefits to which you are entitled as well as or instead of Tax Credits. Keep this link to turn2us handy as it has a very good Benefits Checker. Enter the details of your circumstances to find out what applies to your family.