does anyone know how CTC work as I''m fairly new to them?
My income for 2011-12 was based on what I earned in 2010-11. Due to being able to get a chunk of overtime in (a one off opportunity that fell at the right time) my actual earnings will be about £1500 (gross) more than the tax credits were based on. Does this mean that I will have been overpaid and have to repay it? Will it mean that I will get less in the 2012-13 tax year bearing in mind that I am unlikely to replicate the overtime so will probably earn less in 2012-13 than I have in 2011-12?
Also is it worth paying a lump sum in to my stakeholder pension before the end of the tax year to lose the extra I have earned from any calculations?
Whilst no expert on these matters, I can tell you that yes, they will recalulate the amount you received in tc based on higher earning and will either reduce the future amounts or ask you to repay the overpayment.
So in effect your tc for 2012/3 will be reduced due to the overpaymt in 2011/12.