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Reducing working hours & claiming WTC

punkpunk Member Posts: 21 Connected
Hi, im hoping for some advice please. 
I currently work full time but im finding it more & more difficult & its making my conditions worse. 
Based on my current income i dont qualify but if i dropped a day i would according to the calculators. 
Ive read that tax credits base your income on the previous tax year & not your current income. Is this correct? 
Its a bit of a catch 22 as i cant afford the pay drop but i could if i got tax credits to compensate as shown on the calculators. 
Any advice would be appreciated. 


  • Sam_AlumniSam_Alumni Scope alumni Posts: 7,731 Disability Gamechanger
    Hi @punk

    Tax credits awards are usually based on previous year’s income. 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. Alternatively you can wait until HMRC carry out their end of year review, in which case you will receive any arrears owed as a lump sum.

    From Entitled To website. I hope this helps!
    Senior online community officer
  • punkpunk Member Posts: 21 Connected
    Thats great thank you so much.
  • Sam_AlumniSam_Alumni Scope alumni Posts: 7,731 Disability Gamechanger
    No problem!
    Senior online community officer
  • MarkmywordsMarkmywords Member Posts: 421 Pioneering
    Be aware @punk, that the HMRC play games like the DWP !

    For the last two years, the HMRC have made a 25% claw-back of my credit six months after that tax period ended.

    Although the law says they must adapt to new information given to them within a fixed period, they do not do so. This means that any overpayment is knowingly continued right through to the end of the tax year.

    They then claim the overpayment back all at once many months later unless there are special circumstances.

    Getting external oversight of the HMRC is far more difficult than it is with the DWP. I would have appealed the last one but I have been really ill in the last half of this year.

    By all means go for it but be aware of their practices especially if money is tight. They won't do it to everyone but you never know who it will be.
  • punkpunk Member Posts: 21 Connected
    Thanks for the heads up ill bear that in mind. 
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