Is tax credits always based on last years p60's ?

[Bluemonkeyspots]

Last year I was working full time and dh was abroad earning more than he does in the uk.

This year (starting last week just in time for the new tax year) I have given up work to have dc4 and dh is back working in the uk so our income has dramatically dropped.

We don't claim tax credits at the moment as are not entitled to them but should be. entitled to them once new tax year starts and dc4 is born

Will they let me claim on what. we expect to earn 2013/2014 though or base it on our 2012/2013 income?

It is based on the last years income but there is a £2500 disregard , so for eg if your dh earns £4000 less this year , they will only reduce the income for tc purposes by £1500 (£4000-£2500 disregard = £1500 drop )

I'm sure that's how it works ..

You tell them what you predict to earn in the new tax year and give them p60 info for the previous.

I don't know how they then calculate it but last year I earned a higher income than last by 10k or so, and in the new tax year my credits are going up.

Hope that helps a little!

If you can actually get through to someone on the phone they can give you an estimate and there's also an online calculator at turntous.org.uk.

You need to tell them last year's figures, but once that claim has come through you can contact them again to let them know that this year will be significantly lower. They will then base it on this year's amounts - that's what we did for the year I was on Maternity Leave.

Call them and talk it through - they are usually fairly helpful if you can ever get through!

Fill in the forms based on the last year's income and then call them and tell them about the change of circs. They will update it.