Working Tax Credits Question.

[pjm012345]

I really hope someone can help me on here.i have little experience with the tax office.
I started a job in early december last year working 60hrs a week. Previously to this i was on job seekers allowance. When i was asked if i would like to claim tax credits i said yes i would if i was entitled to it..
to my suprise , the tax credits began to pay around 50 pound a week into my bank account..
i phoned them up many times an i told them i was worried that i may not be entitled to this money , however no one from the tax office could put my mind at rest .Anyway,..with the recent governments cuts my tax credits went down in march to around £30 .
Then just last week i had my hours cut at work ,im now working only 36 hrs and not 60. ..again i informed them of this and now my tax credits have gone back up to around £50..
i have no idea whether im entitled to this and im worried i may hae to pay it back at a later date.i've done everything to try and find out but cant seem to get answers.
i just received my tax credits renewal form and instead of comleting it and sending it back i decided to phone them ..
the man asked me what my earnings were for the previous tax year (i was only working from the december 10 to april 11 ) but previously to that i had been on jsa .so my earnings were not that great ..but surely this doesnt mean they should be overpaying me now just because i didnt have emplyment for the whole of that tax year?? they also asked me what my earnings would be from april 11 to april 12. how can i answer this as i have no idea ???do my future earnings determine what tax credits i am entitled to now ? please help someone i hate these people

[Buenchico]

Using the calculator here should help you check your entitlement:
http://www.direct.gov...entitlement/DG_181270

Chris

[pjm012345]

that doesnt help unfortunately because it doesnt tell u if they use your earnings for the next tax year to determine how much tax credits u get now.
(even though i have no idea what my future earnings will be)

[Buenchico]

As stated in my link, tax credits are initially always based upon the PREVIOUS tax year's total earnings (but are then later adjusted to take into account any changes in your income).

Quote:
"The calculator asks you for income for the last tax year. But if your income for this tax year (6 April 2011 to 5 April 2012) is likely to be lower, type in an estimate of this year’s income instead.

It's important to know that when you make your actual claim, you must enter last year’s income on the form. Your first tax credits award is always based on your previous year’s income"

[themas]

The situation is that at present (i.e. if you haven't given them an estimate of your earnings for 2011-12) you are being paid tax credits based on your 2010-11 earnings. You can go on like that until Apl. 2012 if you want but your next annual renewal form will ask for your 2011-12 earnings & your entitlement for the 2011-12 year will be finalised on that figure. If your earnings for the 2011-12 year are a lot more than they were for 2010-11 then it may be that you will have been overpaid & will have to repay the excess.

However, you can avoid this by giving them an estimate now of what you expect to earn in 2011-12 & asking them to base your tax credits on it. Your estimate should be the best one you can make so - unless you are sure your earnings will change - it should be the gross amount you expect to get from your present job for the whole of the 2011-12 tax year.

If your circumstances change during the year (e.g. if you lose your job & go back on to JSA, or if your pay is increased) then you tell them of the change & ask for your award to be revised.

So they were actually trying to help you by asking for your estimated 2011-12 earnings. Work out the estimate as described above, ring them & give it to them & make sure they then send you an amended award notice taking it into account.

[kinell]

mmm...'working' tax credit...

i have just had a go on buenchicos calculator....

and i qualify!!!! for the stated sum of £0.00...

is this rebate to chosen people of (my) tax paid exclusively for irresponsible people who take on commitments in excess of their income?

how about a porsche tax credit?

i cant afford one of those but if there is a handout i am off to the showroom!