Tax Credit Briefing discussion

Busylizzie

Does the 25% lump sum count as income for tax credits since its tax free?

KevinG

Busylizzie wrote: »

Does the 25% lump sum count as income for tax credits since its tax free?

No, only the 75%.

spiderx

Martin's right ,you have to be totally on the ball with the child tax credits. I always have been, telling them whenever I or my wifes hours or pay changed. Just one slip up last year means we now have no credits for at least a year. Being on low pay we were over the moon when our employer (local gov.) upped our pay and gave us an ex gratia payment as recompense for being on the 'wrong' (low) grade for years. Told the tax office about our pay increase but never thought that the one off payment would need to be considered. How wrong I was ...it counted towards our award and bumped our pay up to an average we wont come anywhere near this year ! So despite having a smaller yearly income this tax year we will actually get no help via tax credits . 'Big society' and 'all in it together '? Ha ! I'm still waiting for the 'trickle down ' of wealth a certain Mrs. Thatcher promised me all those years ago.....!

KevinG

spiderx wrote: »

Being on low pay we were over the moon when our employer (local gov.) upped our pay and gave us an ex gratia payment as recompense for being on the 'wrong' (low) grade for years.

It's taxable income therefore it counts against tax credits. Why shouldn't it?

spiderx

Not disputing the fact that it is taxable income but bemoaning the fact that even when you have a small stroke of luck it seems to be negated by paying tax and losing tax credits almost pro rata...which in our case cut in half our employees ex-gratia payment. Doh !

spiderx

meant employers NOT employees payment ! Doh ...again !

alisonnpaul

hi guys need a quick guide here can you help please?

ok so i care for the wife who's on middle rate care and low mobility dla im on carers she claims the employment support allowance for us both and is in the special group, we also claim full housing benefit and council tax.

pretty annoying to those that work i know but it's not in me to sit round smashing my head of four walls daily.

I have the chance of a small window round just 3 hours a week but i hope it'll get me a start total per week from it would be £31 how do i declare this. I went to the job centre who were surprised i wanted to tell them they offered me a "permit to work" application form i put it in and was told after 1 year i'm to stop the work.

my problem is after the year where do i go if i want to continue my clients would want me to continue and i'm baffled as to why the job centre wouldn't approve. who do i declare it to after the year? do i stop claiming benefit? if i did how do i support my wife and self ? where both 40 plus with no dependants, any relevant paper i could read up on is a plus cheers guys

benkeenan2005

Hi all

After a long wait and numerous calls to Tax Credits, we've now been told that due to my earning being over the threshold for 14/15 we aren't entitled to anything this year....is this correct and true for all circumstances?

I left my job to start a new business but it's risky and very slow at the moment, so my earning will be £0 for this tax year. My partner has gone back to work part time but we're estimating £6k, which leaves us a massive hole in income.

They are expecting us to survive until April 2016 when we can they apply for 16/17 tax credits - BUT from my understanding if we then earn over the threshold, assuming business picks up, we wont get any of the money anyway!

Do we have any other options whatsoever??

PLEASE HELP!

Oh and we have 2 children and a mortgage if that helps with the answer.

benkeenan2005

blondebubbles wrote: »

Have you updated your estimated income for this tax year?

They will be base it on your estimate plus £2500 that they disregard for decreases in income eg expect to earn £6000, they will treat you as earning £8500.

Yes, that was the call today to update them and give them the 6k estimate between 2 people.

the previous call was saying we would have to estimate earnings and it would be worked out correctly for the next tax year if we've under/over paid.

recent call was completely different.

CAB has said the same as you though, calling again now but any other help appreciated.

147718

HELLO
I am a retired basic tax payer.
I receive small amounts of dividends from shares
Am I able to obtain a refund of the tax credit
Thank you
147718