Child Tax Credit/Working Tax Credit and New Job - when do they adjust the money?

[PavlovtheWitchesCat]

DH starts a new job at end of October. We do not, at this stage know his exact wage as he will be on shifts and paid hourly, but we have an approx idea.

tax credits are likely to be reduced with DHs new wage as are based on single income only.

But, I want to know, as they are based on 2010/2011 income aren't they? so, when I tell them about his new job at the end of the month, do they adjust my CTC/WTC immediately, or do they wait until next year, to recalculate based on 2011/2012 income for the following year? Will they leave it and wallop me with 'we overpaid you last year' type letter, or will the adjust it now, or will it not affect this years assessment as this is based on last years income, and whatever he earns now, won't affect this assessment?

I think I am confused.

"i think i am confused'

I know i am confused!

They will adjust it now, but as payments are based on yearly income, they will change in April. You might be better off for the rest of the year, you never know.

I don't know if that wa svery clear sorry. A few years ago I started a job in September. As my income was actually September- April rather than April-April, it worked out less in that tax year, so until the next April I got more tax credits per week if that makes sense? When April came around they reduced slightly.

oh I am not sure i get that! Do you mean that they will adjust it but that due to DH not working a full year it might not affect this assessment?

I am on the cusp I think for having a slightly higher amount of CTC. I think that even DH only working for part of the year will bump that over the threshold.

I am working on the assumption that we will lost most of it apart the most basic amount, and anything else is a bonus!, just would be good to have a rough idea.

I will have childcare to add to the mix which will just confuse things even more, think maybe I will get some support with part of this, but again, not presuming I will get a thing.

I think what also confuses me is that my income now is much more than it was last year, when I was on ML and DH not working. CTC people know this from the renewal information, and my award states that my award will be £xxx based on my low income last year, and will change to £xxx (less) as of April 2012 based on my current predicted income. Indicating that another increase in income this year has no bearing, but will affect next year. Ie, the 2012 award will be decreased further with the new income, but not this current award.

However, I do not know if that is the case or I am completely miunderstanding.

They'll get you to work out an average wage over the year, or for me I think it was per week. So if you can sit and do that it'd be a help, and you'd have more of an idea of what you're delaing with. It will be changed as soon as you call them, but it might not change your paymets for a few weeks while it updates. Make sure you make a note of everything you tell them, names of people you speak to etc. They are notorious for messing people around. If it does bump you over the threshold now, it might not for the remaining year once you've worked out the weekly average iyswim? So you may cease getting payments in April? It might be best to call them and get them to do a calculation based on a theoretical change before you call and actually change the details.

WIth regards to your maternity leave, did you remember to disregard £100 every week you were on maternity pay?

Actually reading that back, I would ask them to base your current award on this years income, not last years. They will do this if asked, especially since your income was so low last year, and it will prevent a massive overpayment.

I have done the entitledto.com thing, and it indicates that I will get more this tax year than I thought I would, so I don't want to rely on that as it seems more than it should. I did not realise CTC could give me an estimate on the phone, might try that.

I am presuming that as of April 2012 we will get the minimum amount possible yes, i think we will be entitled to something but nothing more than that.

oh yes, disregarded the £100 per week!

I think this is why I am confused about the whole overpayment thingy. when i renewed, I complete details about my income for 2010/2011, and also details about my income for 2011/2012. They gave me two awards. This current one based on 2010/2011 income which won't change, so presumably this award wont change? And the next award for 2011/2011 for significantly lower, based on my current income, which could (and now will) change and therefore that award could (and now will) change?

If they take into account DH's income for this award, then that means it is not in fact based on 2010/2011 income? I think this is why I am confused.

so, possibly there could be an overpayment between april 2012 and award renewal period, but not now?
Oh I don't know! I shall just presume they will take it all away apart from the basic award and work from there!

That's right, the 2010/1 one is the one that they assume is correct unless you tell them otherwise when you get the form to check. The award from this year can still change, and you'll be asked to review it after April anyway, which is how overpayments get worked out.

but that wont affect this years award though? as any overpayments would be based on a change in 2010/2011, which won't happen and has been confirmed with them, apart from between april 2012 and when the award is renewed. so next years suggested award will be different.

I have just gone back on to the entitledto.com and redid it, completely, as if he started today (only two weeks early so would not make a huge difference, and would indicate more not less income) and it is suggesting I am eligible for much more than I considered I would be although i guess this takes into account childcare as I included that?

I think, I shall put it all away into saving a/c and wait til award renewal for next year. Then if a mistake is made at all, I can pay back an overpayment in one go. And if not, then well, my mortgage co will be happy