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  • FIRST POST
    • jmgrice
    • By jmgrice 14th Jul 17, 1:19 PM
    • 12Posts
    • 1Thanks
    jmgrice
    2 Questions on Tax credits
    • #1
    • 14th Jul 17, 1:19 PM
    2 Questions on Tax credits 14th Jul 17 at 1:19 PM
    Hi!

    Made redundant last year, dropped my salary so applied for tax credits with OH, awarded all pretty straight forward. This year got our renewal, estimating me at 4k over what i earnt last year (Coincidently got a payrise in May to the estimate).

    OH called to explain and query where they got data from (Didn't realise estimated). They explained that it goes on previous years income on p60. So had me at wage before i took the pay cut.

    1ST question is:
    Should i get this years payments on last years wage even though I've now had a raise, seen as though last years payments based on year before?

    2nd is:
    If they awarded it based on my salary before the drop, shouldn't we have been entitled to it before then? We actually had less money before as OH now works 10 hours a week and we have a second child on DLA. We applied 5 years ago and were denied.... Someone in the family was in the same sort of situation but didn't get DLA and Carers like us so assumed it pushed us over the threshold (Salary was 31K at time)

    Thanks in advanced
Page 1
    • Darksparkle
    • By Darksparkle 14th Jul 17, 1:34 PM
    • 4,540 Posts
    • 2,856 Thanks
    Darksparkle
    • #2
    • 14th Jul 17, 1:34 PM
    • #2
    • 14th Jul 17, 1:34 PM
    Tax credits is based on the household income for the previous year unless the current year income increases/decreases by £2,500.

    Example

    2016/17 £30,000 and 2017/18 £35,000 - Tax credits based on £32,500 (£35,000 minus £2,500 disregarded).

    Without knowing your exact circumstances at that time 5 years ago and looking back at the historic rates I couldn't say if you were entitled but it would be too late to do anything about it. You'd have had to appeal at the time (30 days for appeals, 13montbs for late appeals) if you thought this decision was wrong.
    • jmgrice
    • By jmgrice 14th Jul 17, 3:03 PM
    • 12 Posts
    • 1 Thanks
    jmgrice
    • #3
    • 14th Jul 17, 3:03 PM
    • #3
    • 14th Jul 17, 3:03 PM
    Ahh i see, Never mind appealing then,
    I was on 15/16 31K and 16/17 20K (They based it on 31K (previous years) But i did tell them I was on 20K), Now Im 24K 17/18, does this mean they should base it on 20k for last year or not because of 4K jump?
    • Caz3121
    • By Caz3121 14th Jul 17, 3:20 PM
    • 10,781 Posts
    • 7,024 Thanks
    Caz3121
    • #4
    • 14th Jul 17, 3:20 PM
    • #4
    • 14th Jul 17, 3:20 PM
    Ahh i see, Never mind appealing then,
    I was on 15/16 31K and 16/17 20K (They based it on 31K (previous years) But i did tell them I was on 20K), Now Im 24K 17/18, does this mean they should base it on 20k for last year or not because of 4K jump?
    Originally posted by jmgrice
    when did you change jobs?
    tax credits works in full tax years so you would need to include the time @ 31k + time @ 20k to get to the total for 16/17
    they would then add £2.5k on to that figure to recalculate the award

    If the total for 16/17 was indeed £20k and you are now £24k, the award will be based on income of £21.5k (first £2.5 of increase/decrease ignored)
    • jmgrice
    • By jmgrice 14th Jul 17, 3:30 PM
    • 12 Posts
    • 1 Thanks
    jmgrice
    • #5
    • 14th Jul 17, 3:30 PM
    • #5
    • 14th Jul 17, 3:30 PM
    dropped from 31 in Feb 16 so not in last tax year, but they based all year on 31
    • Darksparkle
    • By Darksparkle 14th Jul 17, 4:29 PM
    • 4,540 Posts
    • 2,856 Thanks
    Darksparkle
    • #6
    • 14th Jul 17, 4:29 PM
    • #6
    • 14th Jul 17, 4:29 PM
    You'll need to give the household income figures to give an accurate figure of how your claim will be calaculated.

    What was the total household income for 2016/17 and what do you expect the total household income to be for 2017/18?
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