Tax credits based on this 08/09 income

something_girl

I phoned HMRC to see if I can get my new award based on this years income, as I am newly single and I am also earning £6k less than I was last year. They said they would refer it to someone, so I waited, got the award but it was based on last years, so I phoned again and they said it was noted on screen but hadn't been actioned correctly, the guy said he would sort it... he phoned me the next day and said I had to put it in writing, so I did, that day, got a new award on Friday, based on exactly the same information yet again, ie last years income. What is wrong with these people?

So now I will have to call them again tomorrow then no doubt have to write in again. It can't be that hard, surely?

Anyone else having trouble with anything similar?

Chazpots

Hi Something_girl,

I am in a similar situation accept that I haven't had your problems. I had to contact the TCO with a reduced income figure for the current year (down by £12k - having a bad year) . They adjusted this years figure and a revised award notice was received within a week and payments increased. They didn't ask for it in writing from me though.

Sorry I can't be much help - Hopefully a tax credits expert will be along soon who can advise you.

Chaz

something_girl

ok, thanks for your reply, at least it shows it can be done! Down by £12k... ouch! Hope this year is better for you.

lindsaygalaxy

This year I will earn more than last year, btu ave told them 3 times including on the forms and it is still based on last years!

heather8

Everytime, they process information on their computer, a new award notice is generated.

It sounds like one has been issued, around the same time you rang again.

I would put the details in writing, keep a copy and send it recorded delivery. If no joy after 8 weeks (yes, they are very behind on the post), then contact your MP.

HMRC is in a mess I'm afraid, plus it is peak renewal season.

[Deleted User]

lindsaygalaxy wrote: »

This year I will earn more than last year, btu ave told them 3 times including on the forms and it is still based on last years!

As long as your income doesnt go more than £25k higher this year than it was last year, your award is supposed to be based on last year's income.

[Deleted User]

something_girl wrote: »

I phoned HMRC to see if I can get my new award based on this years income, as I am newly single and I am also earning £6k less than I was last year. They said they would refer it to someone, so I waited, got the award but it was based on last years, so I phoned again and they said it was noted on screen but hadn't been actioned correctly, the guy said he would sort it... he phoned me the next day and said I had to put it in writing, so I did, that day, got a new award on Friday, based on exactly the same information yet again, ie last years income. What is wrong with these people?

So now I will have to call them again tomorrow then no doubt have to write in again. It can't be that hard, surely?

Anyone else having trouble with anything similar?

The change in income is obviously quite large so it might have been forwarded to compliance to make sure you have not hijacked someones award and have given a lower income in order to steal a higher amount of money.
Compliance would normally ask you to go to an enquiry centre with 2 forms of ID, one of which has a photograph, with the details of the change.

Either send the request by recorded delivery (make sure to mark the envelope "Change of Circumstance" as this will speed up the process) or go to your local HMRC enquiry centre.

something_girl

Well I got on of those letters today that say, 'on 18/7 we sent you an award form asking you to confirm and complete, we do not appear to have received a reply, your tax credits may stop' etc etc

I have phoned them 3 times and written twice, asking for them to use 08/09 income as income has gone down significantly.... don't departments talk to eachother?

The last time I called, the guy said 'no we ONLY award on last years income, although I'd been told that if I write in they will decide whether to award on this years income... does anyone know a definite answer to a simple question?

ta

CIS

From HMRC tax credits manual

If this years income is lower than last year the award should be paid on this years - the yrs in the examples haven't been updated but they still hold true.

Example 1: Tax Credit Act section 7(3)(e)

An initial award for the tax year 2007/08 (CY) will be based on the income of the household in the PY (200607 tax year or CY-1). If the household income in the CY (2007/08) is the same or less than the PY income the CY income will be used.

CY income = £10,000
PY income = £20,000
Income used = CY income = £10,000

CY income is less than PY income therefore CY income is used.

Example 2: Tax Credit Act section 7(3)(b)

An initial award for the tax year 2007/08 (CY) will be based on the income of the household in the PY (2006/07tax year). If the household income in the CY (2007/08) is more than £25,000 higher than the income in the PY, the award for the 2007/08 tax year will be reassessed on the income of the CY less £25,000.

CY income = £50,000
PY income = £20,000
Income used = CY income minus £25,000 = £50,000 - £25,000 = £25,000

CY income is more than £25,000 higher than PY income therefore the CY income minus £25,000 is used.

Example 3: Tax Credit Act section 7(3)(a)

An initial award for the tax year 2007/08 (CY) will be based on the income of the household in the PY (2006/07 tax year or CY-1). If the household income in the CY (2007/08) is more than PY income by not more than £25,000, the award for the 2007/08 tax year will be based on the PY income .

CY income = £40,000
PY income = £20,000
Income used = PY income = £20,000

CY income is higher than PY income but not more than £25,000 higher than PY income, therefore PY income is used.

Note:-

Prior to April 2006 the income disregard was £2,500. After that date the income disregard has increased to £25,000.

something_girl

Thanks very much, hopefully I will get another award soon then!