Tax credits - income rise part way through the year?

[DewDr0p]

At the moment we qualify for a significant amount of tax credits but dh has an interview for a job this week that would reduce our entitlement quite substantially. (fingers crossed!)

I know they usually work on earnings for the tax year, so what happens to the money we have already been paid - will they ask for it back? And if so, all at once or in instalments?

I have no problem with paying it back if we're not entitled to it. Just thinking that we will need to plan for it.

some info here. If your hoisehold income changes less than £5000 over the year (April to March) you don't need to notify. Assuming your husband starts around December time you maybe talking about four months at the new salary which would equate to a £20,000 increase to need to notify and have an overpayment.

I don't think you'll be in a situation where you have to repay anything so long as if the total household annual earnings don't exceed £5000 over last years. If its going to exceed you must notify within 30 days.

It is set up to not make you fear of going for promotion or extra money. Its the next year it really hits in your renewal. Unfortunately it bites you if you go from being ahigh earner to a low one because you can barely claim the first part year.

Hoisehold should read household and my maths is shot 4 months at the new salary would be equivalent to a £15,000 salarly increase if its more than £5,000 4 months being a third of a year.