Tax Credits help .Does this add up?

luv-my-job

I started a new job just over a week ago. Before that I was on Income support (through getting divorced)

I have 2 children (school age)
Job is 20 hrs.
Gross wage £220 pw.
Child benefit £35 pw
Applied for working tax credits etc.
Advised weekly amount would be £160! I couldn't believe it would be that much!
Received 1st payment of Tax credits yesterday. £210!!!
Rang Tax credits office today to check amount as I don't want to end up being overpaid and owing back money.I have no debt (other than a tiny mortgage) and don't want any! Was told by tax credits advisor today that, Yes, the amount is correct and that I will receive £209.10 each week for the rest of the tax year .. and prob till 2010 .... I t seems an awful LOT of money! Should I ring them back to double check or does this sound right?
No other income other than my wage and no maintenance as ex husband says he's unemployed and can't afford it ... Child maintenance is looking into that one though, as I KNOW he's working.
There are no childcare costs, as I only work during school hours and my sis will watch kids for me when school is on holiday for Christmas, summer etc.

It seems a LOT of money for 20 hrs work ... that's why I'm not convinced it's right

can anyone advise, please?

Thanks in advance.

cw18

for starters they base the years payments on the previous tax years income -- something I've just hit and queried!!

We're getting the same this year as last, despite having an increase in other income of around £9k -- and having got the award in based on last years income I've immediately phoned and advised them on the estimates for this year, which hasn't made any difference other than to have my weekly amount reduced by £2.73, and have a lump sum of £57.33 put into my account...... this £57.33 being exactly equal to £2.73 x 21 (which is the number of weeks left this tax year!)

luv-my-job

So does that mean because I was on Income support I have no taxable income from the past year? It's all very confusing and I'm just afraid I'll end up owing them money back, through no fault of my own :eek: I'm not spending any of it till I'm convinced they've actually paid me the correct amount :rotfl:

EDIT: to say ... sounds like you'll have to ring them again as well to see why they've paid you back the money they had originally reduced you by lol It really IS confusing lol

cw18

I did this morning -- that's the only reason I know they've reduced the weekly amount. The woman I spoke to didn't know why the system had done it either :rolleyes2

luv-my-job

See this is why it's confusing :rotfl:
I mean if the advisor doesn't know , what chance do we stand

cw18

That's my feeling too -- and then they claim back overpayments because "you should have known you were getting too much" :mad:

It has to be the worst system anywhere in terms of "benefits", 'cos it's the only one I've yet to find a way of actually being able to check manually !!!!

(I always check everything's correct on the paperwork they send me, and always phone as soon as there's any change or I estimate our income going up or down by more than a couple of hundred quid -- and still they say they overpaid us last year )

luv-my-job

cw18 wrote: »

That's my feeling too -- and then they claim back overpayments because "you should have known you were getting too much" :mad:

(I always check everything's correct on the paperwork they send me, and always phone as soon as there's any change or I estimate our income going up or down by more than a couple of hundred quid -- and still they say they overpaid us last year )

That's my worry. I've read so much about overpayments and the hardship caused to families when this then needs to be repaid. I'm trying to ensure I don't get into that situation, but it's difficult when not 100% confident about the advice given. I haven't received anything on paper from them yet, just did it all over the phone, then money paid into my acccount.Should I be ringing and asking for it all in writing or do they normally send it as a matter of course?

cw18

I phoned last Tuesday to give them my child benefit number (everything being re-instated after DS pulled out of college last November and went back this September), and she mentioned they'd made payments on the Monday. I checked my bank account on-line while on the phone to her, and nearly died at the amount !!! All she could suggest was to check the paperwork when it arrived -- and it came the next day.

As I got the extra 'lump sum' in on Tuesday, I'm expecting the revised paperwork tomorrow or Friday -- it's sent out automatically as you're meant to check they have all the correct details on it (which includes the income figures they've used to calculate the amount)

luv-my-job

Ok, thanks ... I'll wait & see what the paperwork says. Hopefully it's right and hopefully yours is too

Auzelia

dont forget to claim your return to work credits too.
£40 per week tax free (£60 if you live in London) for 52 weeks.

Check with your jobcentre if you are able to claim it. x

kurjam

tax creidts wil.l be based on what you earnt last year 07-08, or any taxable benefits you received.....your income you now earn will not be used for tax credit purposes till april next year, so your payments will be lower from april 09 as you will have earnt more money this tax year.... good luck with the job !!