Tax credits disregard

[Jenni65]

Could anyone knowledgeable in tax credits help me, my income for 20/21 was £15,700 but I estimated my earnings for 21/22 as £15,000 as I expected less overtime, but then had an unexpected pay rise which was backdated so my actual income was £17,239.

Does the £2,500 disregard cover estimates given for the current year or should I expect to pay back an overpayment after renewal?

Have you had your renewal yet?

My understanding is within a year your income can change by £2,500 either up or down. If the change is more than this amount then they should adjust your current award to prevent an overpayment or underpayment. If the change is within the £2500 disregard then the adjustments will be made at renewal. Sorry I haven't calculated how much you are above your estimated earnings but if it falls within the £2500 range then you may have an overpayment. It all depends what income they have based your award on.

This is how it's happened for me every year.

Due to how my pension is taken I have to provide evidence of my contributions. So for a period of time it looks like I've been overpaid so they take my overpayment from my new award (as the income difference is around £2300 which is below the disregard).