Tax Credits: Why So Complex? discussion

cyunly

Hello there,
I would be more than grateful if anyone can help me. I am having problem with IR since 2004. Starting with my son being born and I neede to change circumstances, they stop paying me and since then been asking me to pay back. With the help of CAB, after a year we finnally get it sorted, but now, they wrote to us and sai we are not entitle and we shal pay back again...I am at my wids end and feel very stessig as my husband just lost his jobas well. I just want to get this sorted for good and do not know what to do. I do appreciate any advice...Thank you for your time. Kind regards cyunly

Rob,_Aberdeen

We too have suffered Gordon Brown's awful, demeaning, wasteful system. I have a 12-column, 109-row spreadsheet trying to make sense of our "award"s, and the three-year debt we have had to pay back.

Ten million families (according to HMRC, Preston) will have received their "renewal" paperwork in May. For families with total incomes of £23-55k, the maximum tax credits award is £547.50. To claim this you have to read/fill in 30+ pages.

MPs, however, on minimum incomes of £64k, can claim up to £23k per year with a few receipts and a say-so, and very few questions asked!!!!

They voted this system in - it makes us apoplectic!!

Rpb, Aberdeen

Floxxie

Rob,_Aberdeen wrote: »

We too have suffered Gordon Brown's awful, demeaning, wasteful system. I have a 12-column, 109-row spreadsheet trying to make sense of our "award"s, and the three-year debt we have had to pay back.

Ten million families (according to HMRC, Preston) will have received their "renewal" paperwork in May. For families with total incomes of £23-55k, the maximum tax credits award is £547.50. To claim this you have to read/fill in 30+ pages.

MPs, however, on minimum incomes of £64k, can claim up to £23k per year with a few receipts and a say-so, and very few questions asked!!!!

They voted this system in - it makes us apoplectic!!

Rpb, Aberdeen

I claim the basic and I didn't have to read 30+ pages. I had to read one page that summarised our income and work hours and if that had changed enormously, then to call them. Hardly an effort for the £500 for the year.

And I can't see what this has to do with MPs and their expenses. There are many jobs where the expenses aren't scrtunised and I certainly wouldn't be an MP for all the money in the world.

My three gripes are with the fact that a company car (which is part of the job) are classed as if cash in hand, as a couple we are penalised and we receive no help with childcare. If we spearated and took a child each we would bring in a lot more than we receive now (but that is a complaint against the benefits system as a whole).

I think I would probably have more to say on this subject if we actually received something worth getting excited about. Personally would prefer an increase in personal allowance and get rid of this system.

lilypink0906

Hello all, I'm a newbie so please be gentle with me!!

I've been receiving Martins brilliant email for months now and often said I should get myself signed up so I could become part of this forum, Me did just that and look forward to chatting to you lovely people!!

Anyways...reading through this Tax credit topic I wondered if those who dared to re-new their award by the 31st July have heard back yet??
I've not heard a thing and don't really fancy ringing up and speaking to anyone as on past experiences it was a joke.

Also can anyone possibly enlighten me as to why you have to put down the "cash equivalent" for a company car?? Our figure is almost £4000, that I've been told gets added to your earnings for the year,which I find unfair as my hubby is already paying loads in tax through his wages, so are we getting penalised again?? Is this figure used as an extra whole £4000 as more income? His company car is just that...for work use only, doesn't use it privately, it was given to him so he could travel the 100 miles to the office and again 100 miles home, and then be out on the road doing his job (sales exec)

Tax credits are supposed to help out financially where children are concerned aren't they? So how come say if two guys both have an equivalent car, both get hammered on tax for it through their wages, but then the one with kids (who needs the extra for the rugrats) applies for Tax Credits and then gets stung again by having to put down its cash equivalent??.. My hubby couldn't do his job if he didn't have the car,...is it me missing something or am I right in thinking that isn't it enough that he's paying enough in tax already without having to loose out on a bit more in Tax Credits??

The advert is laughable.."Tax Credits, it's money with your name on it"...in small print at the bottom of the screen it should say..."Yeah but we'll over pay you, inundate you with tons of unnecessary paperwork and make you wish you'd never bothered applying in the first place" :rotfl:

Sorry if I've waffled on a bit...promise further posts won't require half your day for reading!!
Regards,
lilypink0906 x

[Deleted User]

lilypink0906 wrote: »

Hello all, I'm a newbie so please be gentle with me!!

I've been receiving Martins brilliant email for months now and often said I should get myself signed up so I could become part of this forum, Me did just that and look forward to chatting to you lovely people!!

Anyways...reading through this Tax credit topic I wondered if those who dared to re-new their award by the 31st July have heard back yet??
I've not heard a thing and don't really fancy ringing up and speaking to anyone as on past experiences it was a joke.

Also can anyone possibly enlighten me as to why you have to put down the "cash equivalent" for a company car?? Our figure is almost £4000, that I've been told gets added to your earnings for the year,which I find unfair as my hubby is already paying loads in tax through his wages, so are we getting penalised again?? Is this figure used as an extra whole £4000 as more income? His company car is just that...for work use only, doesn't use it privately, it was given to him so he could travel the 100 miles to the office and again 100 miles home, and then be out on the road doing his job (sales exec)

Tax credits are supposed to help out financially where children are concerned aren't they? So how come say if two guys both have an equivalent car, both get hammered on tax for it through their wages, but then the one with kids (who needs the extra for the rugrats) applies for Tax Credits and then gets stung again by having to put down its cash equivalent??.. My hubby couldn't do his job if he didn't have the car,...is it me missing something or am I right in thinking that isn't it enough that he's paying enough in tax already without having to loose out on a bit more in Tax Credits??

The advert is laughable.."Tax Credits, it's money with your name on it"...in small print at the bottom of the screen it should say..."Yeah but we'll over pay you, inundate you with tons of unnecessary paperwork and make you wish you'd never bothered applying in the first place" :rotfl:

Sorry if I've waffled on a bit...promise further posts won't require half your day for reading!!
Regards,
lilypink0906 x

I live quite a distance from work and have to pay for a monthly rail card.
My wife uses her car to go to work - she pays the finance, MOT, insurance etc.

Having the car to commute is a benefit to your partner as he would need to find and pay for another means of travel.

I am assuming that if the company had a pool of cars for work use only - no commuting to/from work - this wouldn't be a company benefit.

mazza1985

Tax credits really make me angry. I work 37 hours a week and earn £13k a year, and would be entitled..... If I was 25. Because Im 23 Im not entitled to a penny. What do over 25's need that I dont? I have my own flat and pay my own bills just like anybody else!

antmccarthy

I just checked out the healthy eating for children government grant site and entered my details. Unfortunately, like so many other things put forward by this government there is no place for a father on any of the forms. As I work, I am only here to be milked by the state and therefore don't qualify.

On the other hand, if I did qualify, I would be unable to claim as I am married and don't have a partner... I have a wife.

2 things that are no longer recognised in 2009 Britain - a farther and a marriage

Jowo_2

I don't understand Tax Credits one bit so I am probably well off with my suggestions.

Could they not be scrapped and the minimum wage increased instead? Could this be funded by tax cuts to employers to enable them to foot higher wage bills or though a subsidy that employers receive from government instead of employees?

Mr._H_2

Jowo wrote: »

I don't understand Tax Credits … Could they not be scrapped and the minimum wage increased instead?

No. People are eligible for tax credits even when earning way above the minimum wage, especially when children are involved (any household with children and income under £50,000 is eligible).

Tax Credits could be eliminated by not charging people tax in the first place, which could be done by increasing the personal allowance (the amount that you can earn in a year tax-free, which is currently £6475).

DGJsaver

rubix_76 wrote: »

Up untill your child is 1 year old you receive an extra "baby" element to your award (assuming you are entitled to an award in the first place) so after they turn 1 you will get less.

There isn't much I understand with Child tax credits, but that one I do get ! :T

And in turn i dont , after all dont babys get more expensive when they get older , why does the award get cut so drastically when they reach one year old ?