Another tax credits question

[hulahoop09]

Hiya

Just wondering if anyone knows the answer to this. If in current year hubby earnt approx 19kthen in.next tax year he earns 4k less. Obviously they will disregard the first 2.5k of paydrop so wont pay against that but do they go by the actual 4k drop in the tax year after?

Hubby is looking at another job which would be a 4k drop.and based on the new wage and my wage we would possibly be able to get an extra approx 200 ctc/cc but with them disregarding the first 2.5k it would mean less than 200 but I was wondering in.the tax year following that they would go by his actual wage of the 15k and the extra 200pm would be paid in the following tax yr.

Hard to explain. Lol.

Xx

 

[mum2bee]

Hi hun, its so confusing all of this whole tax credit stuff int it! Im just wondering what u mean by them disregarding 2.5K?

 

[hulahoop09]

Apparantly if your pay drops by 2.5k or less they dnt adjust the amount they pay you same as if your pay increases by 5k or less they dont adjust payment. But I believe the following tax year they will take into account the actual amount on p60 for previous yr so even if its a 1k difference it may make a difference in the payment you get the following year but not for the current. Im not sure if I got 100% right or if I make sense

 

[nugget80]

Hope this helps a bit... This is what i was told when i renewed this year. Dh had dropped about 3k in wages and as you say they disregard the 2.5. However they said when calculating next years award it will go off the figure that i gave from this years p60...
Hth

 

[hulahoop09]

Thanks hun. So if last yr joint on p60s was 27k they would use that for this yr then if this yrs was 30k it would make a difference to payments for this yr but they would use that as a guide for what they will pay us nxt tax year.

Xx