Help With Understanding Tax Credits Award

Lalique_2

Finally got my tax credits through after 4 months of waiting! :j Money was in the account a full three weeks before the award notice arrived. However, I don't understand it & would appreciate a little insight into how it is worked out.

I am on a salary of 13000/annum & am a disabled single parent with one child. Been awarded working tax credits which consists of the lone parent element, basic element, disability element & the 30 hour element. After they added this all up, they have deducted almost £3000 from it (this wipes out both the disability element & some of the basic element) due to my income of £13000.

Is this right? I thought working tax credit was awarded based on the above elements & earning less than £15000/annum. I wasn't aware further deductions were made even where someone was earning less than £15000/annum. Any help or insight would be greatly appreciated. Thank you.

Gemmzie

Have you tried checking entitledto.com or the HMRC calculator to see if they give roughly the same figure as you have?

space_rider

I earned 13303 last year and I had around the same deduction. This year due to having to reduce hours because of chronically ill children and a change of manager I will be earning just over £10,000. I now lose £1645. There is a formula they use to reduce what you are allowed because of earnings which you will probably find on the HRMC website.

CIS

Any income £6420 p/a over reduces the tax credits payable by 39p for pound over the £6420 earned. .

You would have a reduction in your tax credits by (£13000 - £6420) * 0.39 = £2566.20.

FIASCO_2

Have you phoned tax credits to ask them to look at your claim and tell you over the phone the elements they have you down as receiving. They may have made an error in dates somewhere along the line e.g. a change of circumstance you have reported to them....a date error can make an element fall off....you need to speak to them. ask them to look at your claim for this 09-10 period and then ask them to look at your previous year to ensure all elements that should be showing are showing. If the op doesnt know what you are asking for ask for a return call from a manager. Do not accept a quick reply until you are satisfied. Good luck.

Lalique_2

Thank you all for your kind assistance. You have made everything much clearer & so much simpler to understand. Much appreciated.