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Tax credit disregard query

3 replies

Lauren1983 · 29/01/2021 20:05

My partner's income for 19/20 was 24k. Due to a job change his income for 20/21 will be 19.5k. Due to the disregard it appears they will calculate our income (he is the only one working) as 22k. If they based it on his actually wage we would get £800 a year more in tax credits. Will we get that back of the end of the 21/22 tax year or will they just say that he has the 22k income when he doesn't in reality?

OP posts:
SpideyMom · 04/02/2021 01:01

Hi

I thought that if your income increases or decreases more than the allowed disregard then your tax credits get recalculated based of the new figure. For example if your new income falls within the disregard allowance then your tax credits will continue as normal until your annual review. This is how its always happened for me, and I dont agree with it as you end up in a mess

Sweetbabydust1989 · 03/03/2021 18:29

Hi ladies can I join in... by looking at my income looks like there is going to be roughly a 250ish increase from the previous year due to unexpected bonuses for working throughout covid will this be disregarded? I didn’t even think to check my estimate as I had a few sicknesses throughout the year so didn’t think my income would of gone up by much Thanks xx

SpideyMom · 03/03/2021 19:11

Tax credits is a weird one. I would say that increase would be disregarded as its so small, however you never know. However, if it does affect your new payments it will be minimal

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