Potential Payments-Tax Credits

shazza71_2

:mad::mad:
I have a Potential Payment of £1344.93 from Tax Credits, but have to wait until April for it..How MAD is that.!!!!!!!!!!!
I`ve explained we are struggling to survive but he just said incase things change it wont be paid until then...

mattcat

I'm in the same situation but mine is for £2000.
Do they pay it in a lump sum at the end of the tax year, or does it get spread over next years?

[Deleted User]

You will be receiving payments at the correct rate at present. The potential payment is the amount that would have been entitled to from the beginning of the year had you reported the change that caused the increased entitlement earlier.

They wont pay the amount now because if you have underestimated your income or your circumstances change you could be overpaid.

This stops people with higher incomes under-declaring their annual income near the end of the year. If they estimate a lower figure than they previous earned this will result in them getting a large under-payment (the potential payment) and then at the end of the year if they declare their normal higher income they will in fact be overpaid. There are people who play the system then try at all costs to avoid paying back overpayments.

When you complete your declaration they will calculate how much (if any) of the potential payment you should be entitled to and pay the remainder to you. If you have any outstanding overpayments it will sometimes go towards that but if you don't have any overpayments they will normally pay it as a lump sum.

mattcat

My situation is slightly different in that I have an overpayment to pay back. It states on my amended award letter "£1456 will be collected from future award(s) by reducing payments under section 29(4) of the tax credits act 2002".
Therefore does this mean I won't get a potential payment or will it come off of next years. Who knows, maybe I should call them and ask.

Sorry to hijack your thread shazza71!!

shazza71_2

hiya mattcat, you`re not hijacking lol, the lad i spoke to today said the money will be paid in a lump sum in April if my circumstances dont change, which doesnt help me at the moment, i would rather have it now. because of it, i cant even afford to get my husbands prescriptions whereas if i had it now i would be entitled to free prescriptions..i owe money to them also( about £300) but never thought of asking about that sorry,
Subs, its because my hubby lost his job in November, our income is less than last year obviously, we are living on about £200 a week for me, hubby and 2 teenagers 15 and 17, i did tell him this but he just said i have to wait until April...Very Helpful...NOT.

[Deleted User]

How would having the money now entitle you to free presecriptions?

To qualify for an NHS Exemption Car through tax credits you need to meet the following conditions:

Condition A
- You are receiving child tax credit only OR
- You are receiving working tax credit and child tax credit OR
- You are receiving working tax credit with a disability element included;

Condition B
Your household income is below £15.276 gross;

Condition C
You are not claiming Income Support, Job Seekers (Income Based) or Pension Credit.

If you meet these criteria, then Tax Credits automatically send your details on to the Exemption Certificate people, who then issue the Exemption Certificate to you. This can take up to 8 weeks from the date you notified TCO of the change of circumstances.

If you don't meet the criteria you may still be able to get help through the NHS Low Income Scheme.

You can go to the Direct.gov site for more information about help towards health care costs.

shazza71_2

subs, the more money you recieve from tax credits makes you more eligible for free prescriptions etc,so the way i see it, if i was awarded my Potential Payment now(not in a lump sum) which i was only told last week, would entitle me to all the free stuff, £1400 from now til April would give me a hell of a lot more than i`m getting now and would surely entitle me to be able to get my hubbys prescription free..

shazza71_2

Condition A
- You are receiving child tax credit only

we are recieving this but no certificate to say we are entitled to free anything....when hubby lost his job my payments dropped from £36 pw working tax credit to £26 pw child tax credit, when i recieved hubbys P45 informed them of earnings now my money is £51 pw. that is for 2 teenagers...it wont even feed them for a week never mind anything else...

[Deleted User]

When did you notify TCO of the change? As long as his earnings are lower than £15,276 and neither of you is working 16+ hours p/w you will be entitled to the NHS Exemption Cards and should receive them within 8 weeks.

"the more money you recieve from tax credits makes you more eligible for free prescriptions etc"
This isn't true. See post #6.

"we are recieving this but no certificate to say we are entitled to free anything"
The award notice doesn't tell you this, you will receive a letter with the NHS Cards within 8 weeks.

shazza71_2

subs, this has been going on since end of november, i phoned them to tell them my hubby no longer worked as we would not be entitled to WTC, it took until January to sort out ESA etc, we were awarded £26pw CTC, just got hubbys P45 2 weeks ago so give them his earnings, they then worked out ESA £64 pw from Dec til April (there figure is £149 more). i have always told them of any changes immediately. if my hubby had never worked and was recieving income based ESA we would be entitled to "free everything" inluding 5 cold weather payments, but NOOOO, it seems we are being penalised because he has worked.....

[Deleted User]

If you only reported the change of income 2 weeks ago (and it is below the threshold) you should expect the NHS cards within 6 weeks.