Tax credit renewal

[jamees]

Hi

 

Just had a query. Usually when you do your tax renewal you get asked to confirm the previous years income e.g. from p60 notice. But why do they also ask for the previous 2 years income?

As I have received my tax renewal, asking to confirm the 08/09 income, but a friend at work said they also wanted him to confirm the 07/08 income and I didn't really know why.

Any ideas?

 

Thanks

 

james

[jamees]

bump...

[Zamzara]

Because they use the lower of the two to finalise the entitlement (unless income has risen by over £25,000).

 

Payments for 08/09 would initially have been based on 07/08 income. If 08/09 income turned out lower, extra arrears of tax credits would be paid.

[jamees]

Thanks for replying Zamzara.

 

But why in my case they only want to use the 08/09 income to finalise the entitlement, and for him why do they need his 07/08 income also...?

 

Also you said, the payments for 08/09 were based on 07/08 income anyway, so they would of known what 07/08 income was...so why are they asking for it again now...?

 

Also what if the income he gives them now is different to what they hold, for some reason...they hold a different figure..? is it a big deal?

 

thanks

 

James

Edited May 17, 2009 by jamees

[Hunte78]

More than likely your friend hasn't given their Actual Income for the 2007/08 Tax Year, the Income may still be on the records as an Estimate. You have no reason to worry if they are only requesting your 2008/09 income, just complete your renewal as normal.

[jamees]

Yes I will do mine and give the 08/09 income. But just as I am trying to answer some of his unasnswered questions...so they probably need it to confirm the 07/08 income now as what they hold is an estimate..?

If so, then he told me the amount he confirmed to them is very different to what they say they hold for that year, does this affect anything?

 

Thanks

[jamees]

bump...

Edited May 29, 2009 by jamees

[jamees]

bump...