Unfair Child Tax Credit

proview

I got new child tax credit award as I had 1 child aged 8 and I am a lone parent with disability living allowance (middle rate) award. I told them I had stopped working full times job. Now, they gave me new tax credit award were:

Working Tax Credit: £0.00 a month
Child Tax Credit: £139.00 a month (from now until April 2009)

Before when I was working were:

Working Tax Credit: £279.83 a month
Child Tax Credit: £202.16 a month

How on earth they reduce my child tax credit by a huge massive of £63 a month reduced ? I thought the minimum rate for 1 child without me working should be £202.16 a month as I do agreed with no working tax credit as zero payment because of not working but surely they cannot reduced my child tax credit ? (it say on my tax credit award, if I still not working from April 2009 to April 2010 then I will getting child tax credit of £202.16 a month) doesn't make any sense to me !!!!

GlasweJen

perhaps they are reducing your child tax credit to make up for an overpayment if you delayed in telling them you were out of work? That or you've lost your childcare element (if you had one)??

proview

I don't have childcare element. Also, I had inform tax credit helpline the same day when I left my job. Last day of my job redundary as I told them the same day of my last day at work.

I had rang up tax credit explain to me why my child tax credit reduced ? they say it because of my working tax credit paying me too much from the tax year 2007-08 but my final tax year p60 of 2007-08 are correct figure of taxable gross. I cannot understand why I should pay them back ? Because 2007-08 that I had to work so hard to earn my living and to feed my child. Why overpayment ? Doesn't make any sense to me! What a bloody labour tax money owed !!!!

ellyf

if you lowered your income down 07/08 & then it was higher on finalisation then this can cause overpayments. also, when your change went through (ending work) did you get a one-off payment - ie 2 payments in 1 week/payments outside of your normal payment date? this can reduce your remaining payments as the extra payment made still has to come off your award. also, chase up the helpline to check that the 4 week run on was sent - the tax credit office & dwp are working together so that you get a run-on payment of wtc. hope this helps.

proview

Tax credit helpdesk also ask me to tell them straight away once I had got my final P45 taxable gross (April 2008 to October 2008) from my employee. Why do they need it because they stopped paying me WTC now ? Or was it something to do to increase CTC ? Bit confused here.

[Deleted User]

Your tax credits is based on your income so they want to know what it is.

Dont just tell them your P45 figure - work out your estimated earnings rfrom 6th April 2008 until 5th April 2009.

If you do not plan on returning to work after this you only need to give your P45 figure but if you may be returning to work you should try to estimate what you might make during the full period of 08/09.

proview

Do I have to tell tax credit helpdesk of my ex gratia payment of £5,000 tax-free lump payment on my final salary pay slip? I fear if I do tell them of my £5,000 income from my employee - my tax credit could be end up overpayment even worse ? The £5,000 is a redundary payment. Nothing to do with my work salary from April 2008 to October 2008.

[Deleted User]

If you receive a redundancy payment of less than £30,000 you dont need to declare it to TCO.

See this link page 20.

http://www.hmrc.gov.uk/forms/tc600-notes.pdf

It tells you to only include redundancy over £30,000.