WTC -- current year's income?


P

Paula1

On the application form for WTC, last years income is asked for. But if the
current year's income (actual and expected) is substantially lower how, when
making the application, does one make this fact known? Surely it's not a
matter of having to wait for payments to start before informing the Tax Credit
people? This is in regard to self-employed income. TIA, P
 
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F

fluke

I"ve just filled mine in - lets say last year you earned £10.000 (2006-2007)
you have to put in £10.000 your Tax creds will be based on this. If you
earn less for this year (2007-2008) your tax creds next year will be based
on the lower amount hence more tax credits next year.

Fluke
 
M

Mogga

On Wed, 16 May 2007 21:51:48 GMT, "fluke" <noaddress as
I"ve just filled mine in - lets say last year you earned £10.000 (2006-2007)
you have to put in £10.000 your Tax creds will be based on this. If you
earn less for this year (2007-2008) your tax creds next year will be based
on the lower amount hence more tax credits next year.
No you should tell them of all changes and put them in writing because
they mess up all the time. Its stupidly supposed to react to your
increase in pay which can easily result in you being skint and getting
it and then earning too much and having to pay money back.
They've paid something mad like 6bn too much in overpayments and are
claiming 4bn back.
 
F

fluke

Mogga said:
On Wed, 16 May 2007 21:51:48 GMT, "fluke" <noaddress as


No you should tell them of all changes and put them in writing because
they mess up all the time. Its stupidly supposed to react to your
increase in pay which can easily result in you being skint and getting
it and then earning too much and having to pay money back.
They've paid something mad like 6bn too much in overpayments and are
claiming 4bn back.
--
http://wwww.orderonlinepickupinstore.co.uk
Ah fetch it yourself if you can't wait for delivery
http://wwww.freedeliveryuk.co.uk
Or get it delivered for free
The renewal pack asks about your previous years (total) income, and your tax
credits are based on this....................up until April 2008.
When you get your P60 the amount you earned for that year will be what your
tax credits will be calculated on.
There was a stage were they paid to much I agree, but since 2006 a buffer of
£2,500 has risen to £25,000 to help smooth this out.

Fluke
 
P

Paula1

I appreciate the advice and comments but am still confused. Is it not
possible fill in the (first time claiming) application form to get WTC this
year at a rate that reflects this year's actual/expected, self-employed,
income rather than last year's higher income? TIA, P
 
F

fluke

Paula1 said:
I appreciate the advice and comments but am still confused. Is it not
possible fill in the (first time claiming) application form to get WTC this
year at a rate that reflects this year's actual/expected, self-employed,
income rather than last year's higher income? TIA, P
Suppose you could ring the HM REVENUE & CUSTOMS on 0845 300 3900 and ask
them.
The HMRC actually calculate WTC + CTC from the previous years income though.
(top and bottom) I'm confused now, why would you want to base tax credits on
your expected years earnings - especailly as you are on self-employed
income. How can anybody (first timer) guest "T" Mate this income.

Did you actually have earnings for the previous year?

Fluke
 
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P

Paula1

Suppose you could ring the HM REVENUE & CUSTOMS on 0845 300 3900 and ask
them.
The HMRC actually calculate WTC + CTC from the previous years income though.
(top and bottom) I'm confused now, why would you want to base tax credits on
your expected years earnings - especailly as you are on self-employed
income. How can anybody (first timer) guest "T" Mate this income.

Did you actually have earnings for the previous year?

Fluke

Have been self-employed for nearly 3 years. Revenue has been steadily
declining over the past 6-9 months though and I fully expect this years
income to be well below last year's, which was enough for me not to be
eligible then for WTC. P
 
F

fluke

Paula1 said:
Have been self-employed for nearly 3 years. Revenue has been steadily
declining over the past 6-9 months though and I fully expect this years
income to be well below last year's, which was enough for me not to be
eligible then for WTC. P
Thanks for putting me in the picture, it's looking like you will have to
re-adjust your out goings for this year - but next year you will benefit. I
know this dosent help, but from my experience with the revenue service its
taken them years to get this far, so if they were to now start to base your
earnings on the following year they'd have to do this for everybody.

Fluke
 
Z

Zargon

Quote: "On the application form for WTC, last years income is asked
for. But if the
current year's income (actual and expected) is substantially lower
how, when
making the application, does one make this fact known? Surely it's
not a
matter of having to wait for payments to start before informing the
Tax Credit
people? This is in regard to self-employed income. TIA, P "

______________________________________________________________________

The following are extracts from the CPAG guide to Tax Credits.
As you probably know, CPAG are widely respected as an authority on
welfare benefits.

The capitals are mine for emphasis

Extract 1:
The original award can be revised during the year, with the
calculation based instead on an ESTIMATE OF YOUR CURRENT YEAR'S INCOME
if you tell the Revenue about the change in income.

Extract 2:
If you think your income will be LOWER or significantly higher in the
current year, you can ASK FOR THE AWARD, including a nil-rate award,
TO BE REVISED.

Extract 3:
IF YOU EXPECT YOUR INCOME TO BE LESS IN THE CURRENT YEAR than in the
previous year, you should tell the Revenue so it can BASE YOUR AWARD
ON WHAT YOU EXPECT YOUR EARNINGS TO BE IN THE CURRENT YEAR. You should
take particular care to tell the Revenue quickly if you later think
your estimate was too low so it can readjust your award based on the
new estimate. If you do not do this, you could end up with an
overpayment at the end of the year.
 
Z

Zargon

Quote: "On the application form for WTC, last years income is asked
for. But if the
current year's income (actual and expected) is substantially lower
how, when
making the application, does one make this fact known? Surely it's
not a
matter of having to wait for payments to start before informing the
Tax Credit
people? This is in regard to self-employed income. TIA, P "

______________________________________________________________________

The following are extracts from the CPAG guide to Tax Credits.
As you probably know, CPAG are widely respected as an authority on
welfare benefits.

The capitals are mine for emphasis

Extract 1:
The original award can be revised during the year, with the
calculation based instead on an ESTIMATE OF YOUR CURRENT YEAR'S INCOME
if you tell the Revenue about the change in income.

Extract 2:
If you think your income will be LOWER or significantly higher in the
current year, you can ASK FOR THE AWARD, including a nil-rate award,
TO BE REVISED.

Extract 3:
IF YOU EXPECT YOUR INCOME TO BE LESS IN THE CURRENT YEAR than in the
previous year, you should tell the Revenue so it can BASE YOUR AWARD
ON WHAT YOU EXPECT YOUR EARNINGS TO BE IN THE CURRENT YEAR. You should
take particular care to tell the Revenue quickly if you later think
your estimate was too low so it can readjust your award based on the
new estimate. If you do not do this, you could end up with an
overpayment at the end of the year.
 
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F

fluke

Zargon said:
Quote: "On the application form for WTC, last years income is asked
for. But if the
current year's income (actual and expected) is substantially lower
how, when
making the application, does one make this fact known? Surely it's
not a
matter of having to wait for payments to start before informing the
Tax Credit
people? This is in regard to self-employed income. TIA, P "

______________________________________________________________________

The following are extracts from the CPAG guide to Tax Credits.
As you probably know, CPAG are widely respected as an authority on
welfare benefits.

The capitals are mine for emphasis

Extract 1:
The original award can be revised during the year, with the
calculation based instead on an ESTIMATE OF YOUR CURRENT YEAR'S INCOME
if you tell the Revenue about the change in income.

Extract 2:
If you think your income will be LOWER or significantly higher in the
current year, you can ASK FOR THE AWARD, including a nil-rate award,
TO BE REVISED.

Extract 3:
IF YOU EXPECT YOUR INCOME TO BE LESS IN THE CURRENT YEAR than in the
previous year, you should tell the Revenue so it can BASE YOUR AWARD
ON WHAT YOU EXPECT YOUR EARNINGS TO BE IN THE CURRENT YEAR. You should
take particular care to tell the Revenue quickly if you later think
your estimate was too low so it can readjust your award based on the
new estimate. If you do not do this, you could end up with an
overpayment at the end of the year.
Very interesting

Fluke
 

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