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Child Tax credit entitlement

Hi,

I have a 3 week old baby and contacted revenue and customs to apply for child tax credit. On our present income we are entitled (our income has halved as my wife is on maternity leave) however they said they calculate entitlement from 2007/8 income, which is irrelevant to us as the baby was born in 2008/9, how can it be right that the calculate entitlement from our income before my wife gave up work!?

Is this right? Is there a way around it?

Thanks
Charlie

Comments

  • Initial award is based on previous year income but you can call when your award has been processed to have it changed to your current year estimated income if it is lower.
  • I also rang them today and they told me that they calculate tax credits based on 2007/08 income and would not even send me a pack as we would not qualify based on last years earnings. Without a pack, how can they calculate initial award?

    They told me to claim in 2009/10 when I get my P60 with 2008/09 earnigns (halved due to maternity pay). However as they do not backdate for more than 3 months - does that mean that I'm going to lose Sep-Nov allowance and can only claim Jan-March 09?
    This seems unfair.
  • Call them back and tell them to take note of your current year estimated income inorder to claom tax credits. If they refuse request to speak to a manager as you can claim immediately if you want - even if you were going to earn too much this year as your income could change at any point through the year.
  • subsoniccoyote
    Thanks for that. I rang them this morning and got a different person who was very helpfull. He's calculated our entitelment based on estimates which is £4 based on 2007/08 but asked to call them again with estimated income for 2008/09 once the claim is processed so that the payment can be adjusted.
    Fingers crossed...
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