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Income more than last year, when do I tell tax credits ?

6 replies

Dilligaf81 · 24/01/2012 17:38

Last tax year I earnt £6000 (qualifying income) as most of it was spent on maternity leave, when I renewed I had to provide futher details as they said what I had declared didnt match up to my P60.
When I clarified the mat leave they said it was correct and I told them I was returning to work and my income would be going up, they said I just had to tell them when I renewed unless it was £10k more.
My P60 this year should be about £11500 do I need to tell the tax credit people before April ?

Thanks

OP posts:
KatieScarlett2833 · 24/01/2012 17:40

Tell them now unless you want an overpayment.

Dilligaf81 · 24/01/2012 17:47

The payments Im receiving now are based on last years income so the payment Im getting should carry o til April shouldnt it ??

OP posts:
CogitoErgoSometimes · 25/01/2012 07:25

If you run your new details through this Online Benefits Checker you'll be able to judge what the difference in award is likely to be and therefore how much, if any, will be deducted for the overpayment from next year's award.

Meglet · 25/01/2012 07:37

I've always told them about changes straight away. Have never had to pay anything back so far.

Dilligaf81 · 25/01/2012 23:06

Good news Im ok till April and I will actually get more than I though so it pays to tell them straight away and stop me worrying for nothing.

OP posts:
DaisySteiner · 26/01/2012 12:51

Tax credits for the current year are not affected by income increases up to 10K compared with the previous year. You can wait until renewal to tell them, however bear in mind that between the start of the new tax year and whenever your renewal is processed they will assume your income is still only about 6K and your payments will be made at that level and will then fall more sharply after renewal to take this into account. Hope that makes sense!

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