Tax credit nonsense!!!! Wading my way through

[holidaysarenice]

Hi all,

Now I am likely thinking I am not entitled to any of this but a friend got me thinking otherwise.

I am currently a student, but working all summer, probably will earn about 1800 a month before taxes etc and about 1300 after (tax/ni/pension etc), more than likely for june july aug and a wee bit of sept. i am 25. so basically i did the online calculator and it said i wud be entitled to x amount based on my years income, it doesnt consider that it is only for 3 and a half months.

last year my income was probs about 10000, for the year worked april to mid sept and about 7200 after taxes etc.

would i be entitled? is it only for the three months or the whole year amount?
any advice really is welcome, the website just loses me completely.
the child element i have worked out is not relevant to me.

and thanks guys for the advice!!

No you won't be entitled because your entitlement to working tax credits stops as soon you finish work in September. Therefore you will only entitled to 3 months of pro rated tax wtc, and your pay during these months will be too high to qualify.

First thing that leaps from your post is that you shouldn't pay any tax at all if your annual earnings between April 2012 and April 2013 are under £8,105. On your earnings of 2011/2012 you should only have paid around £850 in tax and NI so you can probably claim a rebate if you have kept hold of your P45 or wage-slips. Their tax helpline is 0845 300 0627 or you can fill in Form R38 and send it off with supporting paperwork.

Working tax credits are based on annual household income before tax and, as a single person, you are also required to be working an average of 16 hours a week to qualify. If the child element isn't relevant is that because you don't have children? Tax credit calculators tend not to be so accurate for full-time students. Suggest you talk to your student union or student services regarding state benefits and additional financial help

If you put your 2011/12 total earnings into this online income tax calculator and make sure the Tax Year is set correctly you'll be able to work out how much you overpaid last year. Do the same for 2012/13 when you stop in September

yeah i have done that and claimed bk last years tax - thank you.

i understand that i would only be entitled for three months, an althou my pay wud be high in those months i was told it was based on last years pay which wud qualify?

You could claim for those three months this year.