I owe tax credits 30K !

alwaysonthego_2

Pepzofio wrote: »

Check where? And are you comparing like-for-like working hours?

Your figures suggest a single parent working part time & a couple working full time. Taking like-for-like claims, the level at which entitlement ends is the same for single/joint claimants with children.

I have done manual calculations as follows (assuming no disabilities in the family or entitlement to 50+ element):

Single person no children - WTC entitlement ends at approx £13,186pa

WTC max award = £2,665pa
Basic £1890pa
30hrs £775pa

£13,186 - £6,420 = £6,766
39% = £2638.74 to be deducted from award = £26.26pa*

Couple no children - WTC entitlement ends at approx £17,955pa

WTC max award = £4,525pa
Basic £1890pa
Couple £1860pa
30hrs £775pa

£17,955 - £6,420 = £11,535
39% = £4498.65 to be deducted from award = £26.35pa*

Single person with children, 30+ hours - WTC entitlement ends at approx £18,022pa

WTC max award = £4,525pa
Basic £1890pa
Lone P £1860pa
30hrs £775pa

£18,022 - £6,420 = £11,602
39% = £4,524.78 to be deducted from award = £0.22pa*

Couple with children, 30+ hours - WTC entitlement ends at approx £18,022pa

WTC max award = £4,525pa
Basic £1890pa
Couple £1860pa
30hrs £775pa

£18,022 - £6,420 = £11,602
39% = £4,524.78 to be deducted from award = £0.22pa*


Single person with children, 16-29 hours - WTC entitlement ends at approx £16,035pa

WTC max award = £3,750pa
Basic £1890pa
Lone P £1860pa

£16,035 - £6,420 = £9,615
39% = £3,749.85 to be deducted from award = £0.15pa*

Couple with children, 16-29 hours - WTC entitlement ends at approx £16,035pa

WTC max award = £3,750pa
Basic £1890pa
Couple £1860pa

£16,035 - £6,420 = £9,615
39% = £3,749.85 to be deducted from award = £0.15pa*

(*awards below £26pa are not paid, but claimants with children would also be claiming CTC so WTC could go down to £0.01pa and still be payable.)

Yes I was comparing the same hours and the same incomes. I checked on the HMRC website.

Pepzofio

alwaysonthego wrote: »

Yes I was comparing the same hours and the same incomes. I checked on the HMRC website.

I've just used the same calculator and got same results for single/joint claims... Weird.

AirCooledHeaven

haddit wrote: »

What arrangement am I likely to be offered to pay back such a sum ? Obviously do not have that kind of money and god knows how they arrived at that figure.........:eek:

V.worried

Initially they'll send you a bill for the whole amount. Then you ring up and tell them you can't afford a lump sum and they'll make you an offer to pay it back in instalments without interest, probably 12 months initially. If you think it isn't long enough to pay it back they will review their offer against your SOA (or whatever they call it). But whatever happens you will have to pay it back, I don't believe bancruptcy protects you against an inland revenue debt.

AirCooledHeaven

bunny999 wrote: »

yes disgusting isn't it

Why is it disgusting? If the OPs financial situation had been genuine then they would have been rightfully entitled to it.

AirCooledHeaven

bunny999 wrote: »

Yet another great example of why tax credits should be abolished.

Then I assume you aren't getting any? (tax credits that is);)

AirCooledHeaven

cazzzie987 wrote: »

I am cross at people like OP who commit fraud and get away with it.

They haven't 'got away with it' they will have to pay back every penny.

brians_daughter

it is infuriating that the system is open to such actions. Ok, the op has been 'caught' and will pay it back, but i wish someone would give me an interest free 30k loan!!

I agree in principal with tc ie assisting those that need help, but there must be a better way to manage it?

For example.. i know i COULD claim tc to the tune of £3000 per annum but i manage well by budgeting and living within my means, yes i have debt but i would rather provide for my family myself than claim tc. In my opinion tc should be there to cover basics not fund extras (not directed at op)

To op, i would call asap and try and set p payment method/amounts - it at least shows willing rather than sitting back awaiting them contacting you. You never know this may work for you when negotiating payment schedules?

diable

So if I go self employed start up my own business have full responsibility for my children then what can I claim in WTC?

brians_daughter

diable wrote: »

So if I go self employed start up my own business have full responsibility for my children then what can I claim in WTC?

that would depend on income. entitle to or the hrmc site both have calculators on there that you can use to access the info

Pepzofio

cazzzie987 wrote: »

It is disgusting to get that much benefit. I think we would all agree benefits are a good thing but they are abused big style, by greedy and lazy people this is the problem.

I am cross at people like OP who commit fraud and get away with it.

In fairness, OP hasn't exactly "got away with it" - in fact if she had reported the changes at the time, there's a fair chance that the reduction in benefit would have been a lot less than the current overpayment.

Unless they've changed their policy recently, I don't think TCs consider underlying entitlement as HB generally do. (i.e. If you fail to report a change HB will generally look at what you were actually entitled to and deduct it from the overpayment, whereas TCs treat the entire amount paid as an overpayment, regardless of whether you were entitled to any TCs based on your true circumstances.)

So while OP may have lost childcare costs by having a stay at home partner, she would still have received the rest of her WTC/CTC. As it is now, it sounds like she has been billed for the entire amount paid to her.