Back dating tax credits

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However if your current year income falls by more than £2,500 your award is instead based on your income in the current tax year, plus £2,500.You can report an estimate of your lower income straight-away, which may lead to an increase in your tax credit payments.This page tells you more about what tax credits are, how to apply for them and what to do if you’re overpaid.If you’re responsible for any children under 16, you could get Child Tax Credit.Before registering, you should check you're eligible to claim fuel tax credits.Work out if you're eligible to claim fuel tax credits If you are already registered for GST, you can add a registration for fuel tax credits any time without affecting your GST tax period – whether it is monthly, quarterly, or annual.

Where a tax credit claim has been made by a couple who were not together in the previous tax year, the household income will be the sum of the income of each adult in that tax year.In effect the system sets and pays you a provisional tax credit during the year and then the amount they should have paid you and the amount you were actually paid are reconciled at the end of the year.Ultimately, if you wish to avoid overpayments and underpayments of tax credits, it is in your interest to report significant changes in circumstances or income as they happen.If your child is awarded DLA or has an existing award increased to the high rate for personal care, this may lead to extra tax credits.So long as you notify the Tax Credits office within one month of getting the DLA decision, any extra payments should be backdated in line with the DLA award.

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