Tax credits knowledge needed please!

[fraggly]

Hi, I found out on Friday that the company I work for are experiences more financial difficulties than I'd realised. As the only part timer on the team I was told that they might need to 'let me go'. Obviously I'm now in a complete panic about family finances. Sooooo my question is how will my tax credits be calculated for 2012? When I fill out the online entitledto form it calculates my payments based on 2011 earnings. Will my payments increase in line with the new family income or still be based on last year?

Forgive me if this is asked a millions times but I incredibly stresses about how we will cope if I do lose my job.

And I'm really sorry for tthe million typos but I'm on my phone and it won't let me proof read grrrr!

The award is based on your household income in 2011/2012 tax year but, if your circumstances change significantly, you tell HMRC and the award is revised. Good luck

You will need to phone HMRC and ask for an 'in-year assessment of earnings'. In other words, ask for them to look at your actual earnings for this year, instead of your income from last year.

The only thing you have to bear in mind, is that if you then get a job, you could find yourself with a big overpayment. For example, if you were unemployed, and got £250 per week Tax Credits, but then got a job taking you completely over the tax credits limit for your circumstances, then for each week you received the £250, you would owe £250 to HMRC. Does that make sense?

Thank you for your advise. I found out yesterday that I have lost my job and so contacted HMRC today. As Lougle said I completed an estimation of earnings for this year and will be notified of my new entitlement through the post.

Thanks