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Tax Credit Briefing discussion

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  • Stabilo
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    But childcare costs can only be claimed if your income is below a certain level so surely you need to know the income level (as declared by the July & Jan deadlines) before you know if the childcare costs can be reclaimed?
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  • Stabilo wrote: »
    But childcare costs can only be claimed if your income is below a certain level so surely you need to know the income level (as declared by the July & Jan deadlines) before you know if the childcare costs can be reclaimed?

    This is incorrect. The amount you may be awarded is based on your income but you should still declare the costs to TCO straight away.

    They cannot calculate your correct entitlement without knowing the exact circumstances.

    If you have current childcare costs make sure you have added them as you may get an increase in your payments which would be backdated for the 3 months.
  • lalaloulou
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    What do I do? The tax credit owed me money (£4127) and took out the money they owed me before they put it into account leaving me overdrawn by £4127. Following day they put that amount into my account but this then cancelled out the overdrawn amount and therefore left me with nothing! I have contacted them but its showing on the screen at tax credit as its been accepted by the bank!
    Help me!!!
  • KevinG
    KevinG Posts: 1,876 Forumite
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    lalaloulou wrote: »
    What do I do? The tax credit owed me money (£4127) and took out the money they owed me before they put it into account leaving me overdrawn by £4127. Following day they put that amount into my account but this then cancelled out the overdrawn amount and therefore left me with nothing! I have contacted them but its showing on the screen at tax credit as its been accepted by the bank!
    Help me!!!
    Do the Tax Credit people have a Direct Debit mandate on your account? If not how did they take money out of it? Contact your bank and let them know what happened. I'm surprised they processed the payment - I'd be livid if my bank put through a payment that took me that much overdrawn! Get evidence of what happened, e.g. a statement then contact Tax Credits again and ask them to sort it out pronto and make good any losses you have incurred. It sounds like a pure !!!!-up so I really can't see why there should be any issue with this.

    P.S. I'm not sure why you tacked this on the end of this thread - it would have been more likely to get noticed if you had started a new thread.
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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    edited 21 November 2009 at 1:48PM
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    Tax Credits cannot just take money from your account. They may only recall uncleared funds.

    If they release a high value payment it may be recalled before it is due to clear in your account to verify it is correct and you are not receiving the money in error.

    With some banks it causes a problem as they see the recall as a withdrawal. So if the payment hasnt cleared yet and the bank sees a withdrawal they will charge you for being overdrawn.

    The best advice would be to contact your bank to find out why this happened and to find out if the charges would be waived as it was a recall of money waiting to clear, not an additional transaction and you had no control of it whatosoever.

    I would also contact TCO to make a complaint as you are being told that the amount has been paid but this cannot be the case if it was recalled. The payment screen will show it has been paid but if the adviser was to check your notes there would be a note from the payment section stating that the large amount was recalled to be verified. The adviser would then need to ask you for additional information (normally your income from last year and a current year estimate) in irder to send a referral to the payments section in order to verify the payment.
  • stphnstevey
    stphnstevey Posts: 3,225 Forumite
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    Do dividends count as income?
  • [Deleted User]
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    Do dividends count as income?

    Yes. They come under the "other income" section.
  • KevinG
    KevinG Posts: 1,876 Forumite
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    Yes. They come under the "other income" section.
    Unless they are received in an ISA, in which case they are not taxable so AFAIK do not need to be declared for Tax Credits.
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  • [Deleted User]
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    I answered this in the other thread with the following links attached.

    The second one shows clearly not to include tax exempt investment income.

    http://www.hmrc.gov.uk/taxcredits/st...her-income.htm

    http://www.hmrc.gov.uk/forms/tc600-notes.pdf section 5.6
  • ikr2
    ikr2 Posts: 171 Forumite
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    My employer deducts my contribution (about 7%) to the council's pension scheme before I get my "net" pay. This is not the employer's contribution - it is the employee's contribution to the pension.

    Do I include this pension contribution in the income I report on my Child Tax Credit claim?
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