Can anyone please help re Child Tax Credits, I'm sure they're wrong!

sam84uk

Hi all,

I'm pretty frustrated at the minute over my child tax credits and wondering if anyone can help.

At the beginning of the tax year I was awarded £91 per month in child tax credits (2 children, husband works full time and I work part time) which works out to £1092 for the year or thereabouts.

At the beginning of May I became unemployed and I called to let the Tax credits know of my change in circumstances and that until I found a new job my income would be nothing. They increased my tax credits by £47 so I was now being paid £138 per month.

At the beginning of June I started a new job (same pay as previous job) and rang the tax credits again to let them know there was a change in circumstances. The operator updated my details to say that I was now working 15 hours a week but when the paperwork came I noticed that they hadn't change my income so it still said my expected income was nil. I rang them to rectify this.

Today I received the paperwork which says that my new award for the year is £548 of which they have already paid me £591 so I actually owe them £43!!! My payments have now been stopped until May 09 when they will take the overpayment, apparently in May 09 my payments will be around £40 per month.

I don't understand how at the beginning of the tax year I was awarded £1092 and it's now been reduced by approximately half (£548) when my income has not changed? Our yearly income is estimated to be £1000 less than what we earned last year.

I've rang them twice but they're not budging on it and insist that it's correct. I'm fuming over it as I've been completely honest with them and always updated my circumstances whenever there has been a change as they ask you to. If I hadn't have told them about me being unemployed for a month then I'd have been better off as my payments would still be the same! Does anyone have any advice please? Surely this can't be right?

SuziQ

But surely if you hadn't told them,eventually they would have calculated a large overpayment and you would then be having to find the moneny to pay it back?

I can't help re whether it's correct as I don't understand the sysytem either! I had 3 different award letters in 2 weeks,saying further to you supplying new information-I hadn't as I had no changes! Now I am waiting to see what happens as my youngest was awarded DLA backdated to mid may-everyone here has told me this will increase my tax credits but I won't believe it till I see it!

sam84uk

SuziQ wrote: »

But surely if you hadn't told them,eventually they would have calculated a large overpayment and you would then be having to find the moneny to pay it back?

I can't help re whether it's correct as I don't understand the sysytem either! I had 3 different award letters in 2 weeks,saying further to you supplying new information-I hadn't as I had no changes! Now I am waiting to see what happens as my youngest was awarded DLA backdated to mid may-everyone here has told me this will increase my tax credits but I won't believe it till I see it!

When I say if I hadn't have told them I mean I shouldn't have told them I was unemployed for a month. In the short term they increased my payments by £48 as I was unemployed but now I'm back at work they've stopped my payments altogether. So no I wouldn't have had a large overpayment to pay back as my income was/is exactly the same as it was at the beginning of the tax year when they awarded me the £1092 (£91 per month), as far as I'm concerned this was correct as it was virtually the same as the payment I was getting the year before. The only thing that has changed since they awarded me £1092 in April is my employer, my wages are exactly the same so I don't understand why have they reduced my award by half? I was unemployed for a month so I had no wages for that month yet they've decreased the tax credits???

jay1jay

Were you working 16hrs or more per week in your previous job, and do you pay for childcare? If so, the change might be because you need to be working 16hrs/wk to claim childcare.

sam84uk

jay1jay wrote: »

Were you working 16hrs or more per week in your previous job, and do you pay for childcare? If so, the change might be because you need to be working 16hrs/wk to claim childcare.

I was working 16 hours per week inmy last job, 15 hours in my new job (they don't pay for breaks) and I don't pay for any childcare and never have done. Thanks the replies.

SuziQ

I wasn't paid for breaks either at NHSDirect,but I was still told by the tax credits advisor to include the half hour lunch break in the hours I declared. This was over 2 years ago now,but I'm sure someone here can advise you-perhaps the drop under 16 hours has changed your entitlement?

System

It sounds to me as though you have lost the £25000 disregard when you called them to tell them you were unemployed and your estimated 08/09 yearly income would be £0.

This is common, I can't explain why because I don't understand it myself.

The system seems to be such that when you do your annual declaration and confirm the previous years actual income TCO send you an award notice which tells you that your award will be based on that income and you don't have to tell them of any increase in income unless it increases by more than £25000.
However if you call them and tell them your income has decreased, for whatever reason, they will amend your award, pay you more but the amended award notice will tell you that you have to let them know immediately if your income increases at all (no £25000 buffer).

With regard to your payments at the very beginning of the tax year they could have been your provisional payments - based on the 06/07 income - and would have been subject to change anyhow once TCO received your annual declartion confirming the more up to date 07/08 income.

It might be worth your while making an appointment with your local HMRC enquiry centre. The staff there could show you everything on the computer and check that your details are all correct.

PeskyPenguin

Just a thought, but has one of your children recently turned one? The baby element of the award of £545 is only until a child's first birthday.

sam84uk

PeskyPenguin wrote: »

Just a thought, but has one of your children recently turned one? The baby element of the award of £545 is only until a child's first birthday.

Not since the new tax year. My youngest turned one in November last year.

compoff

It looks like they may have initially decreased your income to nil for the whole tax year as £47 per month seems a big jump in this situation. Then when you have rang up again and changed the income upwards again your entitlement has decreased. You do need to be very careful when stating income figures and thoroughly check your award notices