Hi. We are almost half way through our iva - the best thing we ever did! I have just completedctax credits renewal using p60 figures and our income is down about £2000 for 2012/13. My husband got a new job and although no difference in income there is a difference on paper due to the crossover with how paydays fell. The extra money is always welcome as anyone in an iva with kids will know but we don't want to end up landed with overpayment notice at the end of 2014/15. I haven't informed of any changes except the job as everything remained the same. Does anyone know how this works? Will it just be adjusted back next year, and kept at the higher level for now purely based on what our income was last year?
The tax credit have a disregard of £2500 so if your income falls in the tax year the 1st £2500 is disregarded completely so you will not get any extra payment.
Have a chat to your IP if you have a change in circumstances but you should be better off this year as your tax credits should be the same as last year
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
Thankyou Kelly. Our new award states that our tax credit payments are doubling as we sent in the lower income shown on my husbands p60. Is it the same the other way round for the disregarding or will we end up with a repayment bill as our income will be showing as more when we send in next years p60 figure?
If your husbands income increases by more than £5000 they will base your new award on this years income, if it is not expected to be more than £5000 it will be based on last years income but shouldn't result in an over payment.
If his income goes over £5000 more than last year and you don't inform them, you could get an over-payment.
It is confusing and the rules have changed recently.
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
Thankyou Kelly. Our new award states that our tax credit payments are doubling as we sent in the lower income shown on my husbands p60. Is it the same the other way round for the disregarding or will we end up with a repayment bill as our income will be showing as more when we send in next years p60 figure?
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
