Tax credit help

[bettyboop1000]

If my salary from April 2018 is £12k less than last years salary how will my tax credits be worked out? I know they use last years salary to calculate but do they adjust it for such a large drop?

My contract has ended and I can only find pt work now.

Just to add the online calc only asks for my salary from last year and not for this year so it shows that I won’t be entitled to wtc. Even with the CFC alone this it doesn’t cover my basic outgoings including food, petrol and childcare

After April you would have to ring them with an estimate of what your earnings will be for 2018-19 tax year and then they can recalculate and hopefully payments will increase. They disregard the first 2.5k drop though. So for example if you earned £25k last year and this year it's going to be £13k, your payments would be based on an income of £15.5k. I think this is correct anyway. You just need to tell them that your income is going to be a lot lower otherwise they will base it on last years income and you will be underpaid.

Just call them after the start of the tax year. 5th or 8th April. I’m in a similar situation and asked about it last week

If you expect to earn £2500 less or more you have to tell HMRC within a month of the change. They will then recalculate. As long as you are still doing the minimum hours for your circumstances tax credits should be adjusted

www.gov.uk/changes-affect-tax-credits