Are tax credits based on the previous year's income?

[MrsChemist]

I'm trying to work out how much TC we'll be awarded next year, but it's proving challenging because DH changed jobs just before Christmas.
He did have two jobs during 2010/2011 tax year, so even though his income has gone up considerably in the past 4 months, he'll end up earning about the same in the 2011/2012 as he did in 2010/2011.

However, we estimate him earning about £5000 more before tax in the 2012/2013 tax year.

So is it based on what we think he'll earn (he gets paid per hour, and his hours can vary from 45hours per week to 70+ hours per week) this year, or what he did earn?

TIA

Yes they are, but if your income changes a lot during the year you can ask for an in year assessment, so stop you being over or under paid.

they are estimated based on previous year but the actual amount you are due is based on what you earn in current year so like Bikerunski said you can ask for in year assessment

they are based on the previous year UNLESS

• you have requested that they are based on the current year OR
• for 2012/13 your income increases by more than £5,000 (2011/12 - £10,000) or falls by more than £2,500 compared to the previous year

If you don't request they are based on the current year income and your income doesn't change outside the above limits them the final assessment should remain based on your 2011/12 income.

Is still £10k for 12-13, falls to £5k from Apr 13.