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Tax credits (not Universal credit)

6 replies

BooseysMom · 11/11/2022 12:13

Hi,
Can anyone please help regarding tax credits updates? We updated our last renewal in June, I think it was, based on our last P60s which were based on the last tax year but our payments are continuing even though we will be earning more and my hours have since increased and I have had overtime paid too. Shouldn't the renewal have taken into account earnings going forward? It didn't ask what will we be earning from then to next April. It always works in arrears and not in real time which doesn't make sense as we will have to pay back the excess received. Is it better to inform them now of the updated income, or to wait to the next renewal and see how much excess it is? I don't want to get in trouble!
Thanks.

OP posts:
Dolares · 11/11/2022 12:16

I always told them (on my online account) straight away of any changes and they send a letter out with the updated figures. I wouldn't wait until renewal time.

ForTheLoveOfSleep · 11/11/2022 12:27

I agree with Dolares. Either call the helpline or use the HMRC app to update changes asap. If you wait the whole financial year you will end up have to pay back an overpayment in April and they are brutal with how much they take per week/month.

Beepbeepenergy · 11/11/2022 22:31

Get on UC it’s fantastic for been spot on every month real time
plus so many are better of on it

ScoobyBooby · 11/11/2022 22:41

Tax credits are based on last years earnings so tax year April 21-April 22.
Your new income/ hours should be declared at your annual review and will take into account this tax year April 22-23 . This has always been how ours have worked out , but I always phone straight away if any changes .

From memory it does ask if your income is likely to go up,down or remain the same for the coming year. To be on the safe side and avoid any possible overpayment I would phone x

BattenburgDonkey · 11/11/2022 23:36

Why have you made like 7 near identical threads about this @BooseysMom ?

Harrysnippleno3 · 11/11/2022 23:43

Beepbeepenergy · 11/11/2022 22:31

Get on UC it’s fantastic for been spot on every month real time
plus so many are better of on it

My calculations say I will be hundreds worse off. I'm dreading being moved over to UC.

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