Tax Credit Briefing discussion

baritone2

In April 2012 I reduced my working hours and a £6000 pay cut, I promptly informed HMRC and realised that the new £2500 disregard would take effect on my claim, so in theory HMRC only considered that I had reduced my income by £3500. In April 2013 my weekly payments went up by £30. Today I received an off cycle payment of £74ish, but no letter received as yet. I had calulated using direct gov and HRMC website that the new disregard had meant I had been paid short aprox £1500 over the year as my hours change was at the very beginning of the tax year.

Is it normal to receive more than one off cycle payment as I had expected to receive alot more money than this, or do people think this is my lot.

KevinG

hornet2011 wrote: »

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?

You don't need to mention it on the renewal but you should tell them separately, don't wait until next year's renewal or you may face a massive overpayment.

nemesis0001

To my cost I found out that the Inland Revenue do not consider University to be classed as 'further education' when it comes to claiming tax credit. They must be the only people on the planet who dont!

They don't specify this on their form so please be aware. I know that I am not the only parent to have fallen into this trap.

When I queried it they said it's on their website. It took me 10 minutes to find it - and I was looking for it!

D x

Icequeen99

nemesis0001 wrote: »

To my cost I found out that the Inland Revenue do not consider University to be classed as 'further education' when it comes to claiming tax credit. They must be the only people on the planet who dont!

They don't specify this on their form so please be aware. I know that I am not the only parent to have fallen into this trap.

When I queried it they said it's on their website. It took me 10 minutes to find it - and I was looking for it!

D x

It is in the claim form notes and the notes that come with renewal packs.

It doesn't mentioned further education, it is non-advanced education and it tells you on Pg 3 that it doesn't include a degree level course.

http://www.hmrc.gov.uk/forms/tc603rd-notes.pdf

I don't often defend HMRC, but in this case it isn't really their fault.

IQ

tomwearing

Last year i was fortunate enough to be awarded employee of the year, which came with a free £3K holiday.

This was great, although now I'm stuck with what to do with my Tax Credits.

The problem is that it was paid as a cash gift through my wages (therefore taxable) ie before tax i was paid £4,100.

I'm worried that they will class this as an eaning, thus affecting my tax credits.

Does anyone know of any steps i need to take to stop this from happening?

Many Thanks

KevinG

tomwearing wrote: »

The problem is that it was paid as a cash gift through my wages (therefore taxable) ie before tax i was paid £4,100.

I'm worried that they will class this as an eaning, thus affecting my tax credits.

Does anyone know of any steps i need to take to stop this from happening?

If it was taxable income it was taxable income and will affect your Tax Credits. The only way to stop that happening is to lie about it by not declaring it or give the net amount away to a worthy cause through Gift Aid, in which case you can deduct it from your declared income.

Edit: unless you can persuade HMRC that the holiday was a tax-deductible necessary business expense, which seems unlikely.

DrEvazan

so I'll try and keep it brief.

In short

October 2012 HMR&C wrote and said we'd been overpaid tax credits and owed £210.
November 2012 I wrote back and said I couldn't understand why when we hadn't received a tax credit since July 2011. I asked them to explain how this had occurred.
I heard nothing until June 2013 when they wrote again saying we hadn't replied and still owed the money. I sent them back a copy of the letter I sent in Nov 2012 and again asked for explanation.
We have now received another letter stating that they have written to us three times and their records show that we have still not paid or contacted them?! They also state that they may ask a debt agency to collect the debt for them?!

I don't have a problem paying. In fact I have been saving £10 per month since November in case I do owe it (as i can't pay a lump sum) but I do object to paying if they can't explain why I have been overpaid. The tax credits are such a convoluted system that I have never understood what I have been entitled to and have no idea whether I have ever been receiving the right amount of money.

I intend to write back again, this time I will send it recorded delivery, still asking for an explanation as to why I was overpaid. At this stage my main concern is the 'debt agency'. Does anyone know whether they can just pass the debt on or do they have to go through courts first? My understanding is they can pass it on to a debt agency but they have no powers and if they want to send a bailiff they have to go through the courts.

Any response will be much appreciated and thank you all for your help.

Stillookinafterthepennies

Hi,
I cannot believe the length of time after an error made by hmrc with my wtc.
Long story short they incorrectly stopped paying me wtc after my employer changed their name I work for the nhs and told them of the change in name.
I appealed and was given some of the money owed back to me.
I was then told the claim had to be closed after the appeal and to reclaim.
I sent in a claim as instructed. I heard nothing so rang and asked if they had all info etc and was told yes.
I then had a letter saying claim rejected as I don't work enough hrs.
I rang again and was told completely different information saying you failed to respond to a letter we sent you which never arrived to me.
I was told it had been closed and that I had to reclaim a 2nd time.
I have had more letters saying your circumstances have changed so you are no longer entitled to wtc.
I have made numerous lengthy phonecalls been cut off promised I would be called back with an update no call.
Last week I was called and told this has not happened before but you have 3 claims pending so the technical team will have to look at it.
I rang again yesterday was told I was being transferred to payment dept then cut off.
I rang back and told them had enough I want a manager to ring me today.
No call came so I rang them asked for a manager and told them exactly what I thought of their incompetent service. I have been told I will have a call tomorrow afternoon by manager taking on case personally.
This has been ongoing since the end of may.
Any advice please been in tears today on and off the phone.
Thanks

FRESTER

Stillookinafterthepennies wrote: »

Hi,
I cannot believe the length of time after an error made by hmrc with my wtc.
Long story short they incorrectly stopped paying me wtc after my employer changed their name I work for the nhs and told them of the change in name.
I appealed and was given some of the money owed back to me.
I was then told the claim had to be closed after the appeal and to reclaim.
I sent in a claim as instructed. I heard nothing so rang and asked if they had all info etc and was told yes.
I then had a letter saying claim rejected as I don't work enough hrs.
I rang again and was told completely different information saying you failed to respond to a letter we sent you which never arrived to me.
I was told it had been closed and that I had to reclaim a 2nd time.
I have had more letters saying your circumstances have changed so you are no longer entitled to wtc.
I have made numerous lengthy phonecalls been cut off promised I would be called back with an update no call.
Last week I was called and told this has not happened before but you have 3 claims pending so the technical team will have to look at it.
I rang again yesterday was told I was being transferred to payment dept then cut off.
I rang back and told them had enough I want a manager to ring me today.
No call came so I rang them asked for a manager and told them exactly what I thought of their incompetent service. I have been told I will have a call tomorrow afternoon by manager taking on case personally.
This has been ongoing since the end of may.
Any advice please been in tears today on and off the phone.
Thanks

Get your MP involved.
We did many years ago for a similar problem and it was sorted within days of him contacting them.

Stillookinafterthepennies

Hi
Thanks for your reply.
I have been in tears since the call I had earlier.
I apparently do not qualify for wtc as I do not claim dla?
Years ago for personal reasons I decided not to apply for dla, I was 33 at the time and was hoping that my health would improve after surgery and treatment and that I could regain my life one day...
Years later I have to admit to myself that my health and circumstances are not what I ever thought they would be, so a few weeks ago put in a claim for dla it has been rejected twice.
The tax office have told me this afternoon that as I am not claiming any benefits for my health problems that I do not qualify for wtc. I have never been told this and been on it since 2005.
She said there are a list of benefits you could claim.
I rang citizens advice who said as I live with my mum I'm her carer and she has savings that I may not get anything because they take the house hold income into consideration?
My mothers money is nothing to do with me its her dla and pension!
So because I am trying to keep a job I am being refused help when there are young fit people on certain tv shows bragging about using their benefits to buy drugs??!!
I am speechless and in tears. I wasn't even asked about claiming disability benefits I spoke about it completely unaware that it was a requirement for wtc.
Don't know what to do now citizens advice are going to try ringing me tomorrow or Monday.
If anyone can suggest what I can do please do I cannot claim carers allowance or income support.
Thanks