Working Tax Credits- renewal question

Ricco

I'm a single bloke. I've recently applied for, and received confirmation that I will receive, Working Tax Credits.

I spent the majority of the last financial year travelling around Asia. So, my earnings for the year were less than the £12K or so limit. This year my earnings will be higher, as I've worked for the majority of the year.

The calculations are of course based on last year's earnings, hence the award to me.

Some may think I shouldn't receive these, and I tend to agree. But as long as the government has such a raw, unwieldy and frankly quite ludicrous system of wealth re-distribution in place I'll follow the rules, and take what the goverment says is due to me. In any case, as long as middle class families with children, earning upwards of £50K p.a. are deemed to require help from the state, I'll put my sense of fair play on hold, and sleep very nicely at night.

Anyway, enough of that, here's my question: In April 09 I'll no doubt receive a renewal document. As I said, Iwont be entitled to any further Tax Credits, as my earnings will be higher than the threshold. In addition, I'm sure I'll be asked to re-pay the tax credits I've received between now and then, again because of my earnings this year.

What is likely to happen if I ignore the form completely? Any thoughts?

cw18

Don't ignore the form at the end of the year -- that WILL get you into trouble.

However, I had a chat with a lady at Tax Credits about much the same thing (our income for this year is estimated at £9k more than last year, as last years income was painfully low by our standards due to extended sick leave) as I was worried about getting a vastly reduced rate (or nothing) next year when they reclaim.

So I asked her to put this years figures onto our account so they'd recalc and lower the payments now -- and she's assured me that they'll neither drop now NOR be reclaimed later. (We're currently getting a small amount of WTC that I don't think we should be getting, as well as a higher level of CTC than I expected)

I expressed concern as in the past a mid-year notification of income increase has dropped our payments, but she said that was because our joint income took us over the £52k limit back then (at which they start to reduce how much CTC you're entitled to).

She also said that because I've phoned with estimated figures now, they're on the system but will be ignored -- but in an absolutely crazy system, if I don't log the change now and leave it until the review pack comes, then they almost certainly WILL reclaim an overpayment :eek:


I've kept date and time of the phone call, plus the name of the operator -- they're written on our statement from them so they don't get lost -- and if they do try to reclaim it they'll get told where to get off, and that they can check the phone call recording for what I've been told. And I asked her several times to confirm this was the situation.



(Haven't actually had a new statement through yet to confirm that there's not going to be an immediate drop, but if there is I'll be referring them to that phone call now!)

System

As long as your income this tax year (08/09) is not more than £25000 above your income last year (07/08) then you will be allowed to keep your tax credits this year.

However come next March, before you receive your renewal document I would advise you to tell TCO what your 08/09 income is so that when they start paying out after 6 April 2009 they will know you are no longer entitled to WTC and no overpayment will arise in 09/10.

Ricco

Thanks for your replies, very useful.

Something I left out of my first post: I'm planning to go travelling again; I'll be back around the middle of May 09. So, I'll be unable to complete the renewal form when it arrives.

Would my parents be allowed to complete it on my behalf, perhaps if I write to TCO to authorise them to do this? What's would the worst case scenario be, should I do nothing, and complete the form when I return from my travels? I'd be very happy to re-pay any tax credits they may pay beyond 4 April; but could I be penalised in any way if I don't return the form for a month or two?

I guess it would be possible for my parents to send the form to me in the Phillipines, where I'm likely to be, but I'd rather avoid having to do that if possible.

Thanks again!

DreamerV

You usually have till July 31st to return the declaration so it shouldn't be a problem. If you can't send it in, then you can phone using the overseas number and do the declaration by phone. Doesn't usually take long.

System

Ricco wrote: »

Thanks for your replies, very useful.

Something I left out of my first post: I'm planning to go travelling again; I'll be back around the middle of May 09. So, I'll be unable to complete the renewal form when it arrives.

Would my parents be allowed to complete it on my behalf, perhaps if I write to TCO to authorise them to do this? What's would the worst case scenario be, should I do nothing, and complete the form when I return from my travels? I'd be very happy to re-pay any tax credits they may pay beyond 4 April; but could I be penalised in any way if I don't return the form for a month or two?

I guess it would be possible for my parents to send the form to me in the Phillipines, where I'm likely to be, but I'd rather avoid having to do that if possible.

Thanks again!

When and for how long are you hoping to travel?

Ricco

Hi Pam

I intend to leave the country around the middle to end of March, for 2 months or so. I guess that I should call WTC at the time to advise them of this, it doesn't seem right to pay people benefits while they are on holiday! There again, they never asked me...

cw18

For the sake of about 3 weeks TC payments, I think I'd call them just before leaving to let them know...... much better to lose a small sum than risk all kinds of problems when you get back

Ricco

As far as I can remember, when I made my claim, I wasn't asked to confirm that I will be in the country until 4 April 09. If I don't tell them I'm going on holiday, and they discover this later, could I be penalised in any way, other than possibly having to repay the sums I've received for the time I'm away?

System

If it is just a holiday and you are not actually ceasing your employment then you should be ok. I assume your employer will continue paying you whilst you are away.

If however you terminate your employment then you are unemployed and as such need to advise TCO so they can terminate your claim.