Tax Credit Briefing discussion

Icequeen99

Ellejmorgan wrote: »

hello quick question..

I get child tax credits, I'm on income related ESA..I have 3 children..

For the past 18 months my payments have been £615 per month, and last year after renewals I received a lump sum of approx £640 and they said I was being underpaid..

This year I still receive £615 pm and I asked the hmrc for a calculation and they stated I should get £667 pm...

I don't have my renewal forms yet, but is it likely I'll be back paid, or am I getting the right amount...

If you have been on IRESA all of that time, I would struggle to see how an underpayment can occur as the payments wouldn't change at all.

Is there any overpayment that is being recovered from earlier years?

If you are being overpaid, yes you should receive it after the end of the year.

IQ

Ellejmorgan

Icequeen99 wrote: »

If you have been on IRESA all of that time, I would struggle to see how an underpayment can occur as the payments wouldn't change at all.

Is there any overpayment that is being recovered from earlier years?

If you are being overpaid, yes you should receive it after the end of the year.

IQ

just received a lump sum of £400 so I was being underpaid, but not as much as I thought, turns out they deducted last years lump sum from last years grand total and split it over 13 payments..no I don't owe them anything...

thank you for trying to help

keith.sinnott

Has anybody had an issue over benefit in kind on a company car?

I pay income tax on my car as a benefit in kind payment, Wftc want to add this onto my gross salary which means i am being penalised twice!

Which means they are adding 4k onto my figures for something which i already pay for!

Confused i am

If anybody can advise as to if this is correct etc please help!!

Icequeen99

keith.sinnott wrote: »

Has anybody had an issue over benefit in kind on a company car?

I pay income tax on my car as a benefit in kind payment, Wftc want to add this onto my gross salary which means i am being penalised twice!

Which means they are adding 4k onto my figures for something which i already pay for!

Confused i am

If anybody can advise as to if this is correct etc please help!!

Yes, that is correct. This comes up a lot on here and I am surprised that people find it surprising!

If you compare two people who get promoted. They both get a salary of £20,000. On promotion, one gets a salary of £5000 and the other gets a company car which is deemed to be worth £5000.

Both are taxed on the extra £5000. And both have to declare the extra £5000 for tax credits. So both are treated evenly.

Now, whether the car is actually worth £5000 to the second person is another question.

If you didn't have a car and had extra salary you would have to declare that for tax credits, so the car is just the same.

IQ

Dazed_and_confused

Icequeen99 wrote: »

Yes, that is correct. This comes up a lot on here and I am surprised that people find it surprising!

If you compare two people who get promoted. They both get a salary of £20,000. On promotion, one gets a salary of £5000 and the other gets a company car which is deemed to be worth £5000.

Both are taxed on the extra £5000. And both have to declare the extra £5000 for tax credits. So both are treated evenly.

Now, whether the car is actually worth £5000 to the second person is another question.

If you didn't have a car and had extra salary you would have to declare that for tax credits, so the car is just the same.

IQ

But the really lucky person will get a company van on promotion as this benefit doesn't have to be declared!

pluke1984

im moving in with my girlfriend, who has three children (16,14,8) We both work full time and have checked the tax calculator, and it appears that we're entitled to £700 per year. Ive changed my job and earn half as much now, so does it take into account my earning for last year even though we weren't together then, and can they do a calculation on our current earnings...also if my partner stopped working would our entitlement change, as would it be based on last years earnings. I'm getting very confused with it all...any help gratefully received.

mr_chemist

Ok, new here.

Just received a letter from tax credits demanding £830-odd as overpayments for the passed two years. Can't understand why this is. They have been notified every time our wages have increased, and in fact this year we went over the threshold so we knew we were no longer entitled to anything anyway (and stopped receiving payments). Again, they had been notified. No other changes, one child, I'm the main earner with my partner only getting a small 8-hour a week job as a midday supervisor in a primary school this year. Does this sound like a muck up on their part? - I'm furious.

Thanks,

Mr_C

TMuntins

Hi there,

It would be good if someone could help with this issue. Based on my income of roughly £6,000 for 2011/2012 my application for tax credits in 2012/2013 had this as my expected figure for the year, and the money was paid.

However the time is now coming up for renewal and in actual fact my REAL income for 2012/2013 was more like £10,000 - if I declare this on the document and send this back will HMRC then try to take some of the credits for 2012/2013 from me? Do they check the amounts I put on the renewal forms, as they have a section for themselves to fill in why do they even need people to fill it out?

Thanks in advance

Icequeen99

TMuntins wrote: »

Hi there,

It would be good if someone could help with this issue. Based on my income of roughly £6,000 for 2011/2012 my application for tax credits in 2012/2013 had this as my expected figure for the year, and the money was paid.

However the time is now coming up for renewal and in actual fact my REAL income for 2012/2013 was more like £10,000 - if I declare this on the document and send this back will HMRC then try to take some of the credits for 2012/2013 from me? Do they check the amounts I put on the renewal forms, as they have a section for themselves to fill in why do they even need people to fill it out?

Thanks in advance

Your 12/13 claim won't be overpaid, there was a disregard of the first 10,000 rise in income from 11/12 to 12/13 (that disregard is now only 5,000).

However, you will be being overpaid from April, so you need to tell them the 10,000 as soon as possible.

Yes you need to complete the renewal and yes, they do sometimes check against data on the tax system.

IQ

hornet2011

Hi everyone,

I have been claiming tax credits with my partner for the last couple of years. I am self-employed, and my partner was a full-time student with no income. I have just received my renewal pack for this year. My circumstances haven't changed, however, my partner started a full-time job on the 1st June 2013.

The renewal pack explains that tax credits for the next years are based on income for 2012-2013. As my partner did not start getting an income until the 2013-2014 tax year, do I need to mention this on the renewal, or mention it on next year's renewal?

Thanks in advance!