tax credits this yrs income or last years?

[daysoftheweek]

This is a strange question (and might not even be correct) my income will drop next tax year so how do I claim tax credits? I keep seeing comments about is your income over ?25k more or less than last year. DO I claim on this years income or will I only get credits the following year based on next years income. We've never bothered to claim before but....
thanks

I think its based on last years earnings so you claim the following year (but i may be wrong).

the tax credit award will be based on the previous tax year but when your income drops let the tax credit office know and they can review your award and increase it. the £25k relates to your income increasing by that amount (wouldn't that be lovely!) not to decreases in come.

Just be careful that you let them know about your exact income as you don't want them to over pay you - they can be very aggressive about getting the money back if this happens.

If you've not already claimed (because your income is too high) then claim as soon as your income drops.