Help Me With My Tax Credits Please

takenforaridedotcom

I was long term unemployed but luckily found a job on £18k a year. Unfortunately the company closed down and I managed to get a job on £16k a year. What I can't understand is this. When I got my job on £18k a year I was awarded in the region of £300 per month credits which included over 50 provision and this would go on into this year at £200 per month and then on into NEXT year at a lower rate. However, when I informed HMIT about my change in circumstances, even though I was on LESS money the amount of Tax Credit went DOWN, I now DON'T get my over 50 allowance and it STOPS this year and they have said that if I carry on getting what I am getting at present I will owe them £750 at the end of the year! I keep on querying this but seem to get the same answer that this is correct! If I'd have know this was going to happen I wouldn't have told them that I'd had to get a new job as it seems I'm being penalised for being honest :A and I can't understand why I'm receiving LESS tax credit now I'm on less money. Can ANYONE who DOESN'T work for HMIT please explain why this has happened before I go completely grey and pull all my hair out PLEASE:mad:

[Deleted User]

I would try to help but unfortnately I work for HMRC - not sure what HMIT is but I assume you mean HMRC.

lumar

I'm just wondering that if you started your £18k job part way through the tax year, your total income for that tax year would be less than £18k, hence you would get more tax credits. So even when you "decreased" your salary to £16k, over a whole tax year you would actually earn more and your tax credits reduced. Hope that makes sense. I don't work for tax credit dept so may be completely wrong, but I've been very happy in my dealings with tax credit office.

atomicsheep

they are probably basing your tax credits on your PY income which is more than your CY income. Not sure about the 0ver 50 premium though. I would suggest perhaps asking them to look at your CY income instead and recalculating base don that

atomicsheep

subsoniccoyote wrote: »

I would try to help but unfortnately I work for HMRC - not sure what HMIT is but I assume you mean HMRC.

i call your dept regular as part of my job on a priority line, are you extra busy at the moment as well??

the_devil_made_me_do_it

Is this family tax credits?

My OH earns nowhere near that amount a year and he isn't entitled to any tax credits. We have no children. I did a calculation a while ago on entitledto.com or whatever the website is, and that was the result it came up with.

atomicsheep

the_devil_made_me_do_it wrote: »

Is this family tax credits?

My OH earns nowhere near that amount a year and he isn't entitled to any tax credits. We have no children. I did a calculation a while ago on entitledto.com or whatever the website is, and that was the result it came up with.

family credits is New Tax Credits which is a combination of Working Tax and Child Tax credits
If you dont have children you can get working tax credit if you aork 30 hours plus and are on a low income. You also have to be over 25.
If you have chilldren the age thing goes out the window and you will get child tax credits whether you work or not depending on earnings level.

chriiiiiiiis

takenforaridedotcom wrote: »

I was long term unemployed but luckily found a job on £18k a year. Unfortunately the company closed down and I managed to get a job on £16k a year.

Congratulations on getting two jobs.

You must be one of the lucky ones. No one else can find a job because there are none.

Must be better than JSA.