CTC, salary lower than estimated, failed to notify

itsconfusing

Hi there was looking for advice as we feel we may be in some trouble
After coming across the entitled to calculator today and looking at facts and figures, it transpires that since approx. October 2009 our annual income dropped a significant amount and we failed to update Child Tax Credits about the drop in salary.
We estimated our earnings for 2009/2010 to be £22,000 which were the same as 2008/2009 when in fact it looks like it will be approx. £12,000 less (joint incomes). We both work less than 30 hours combined (edited)
Now the issue is that the calculator has indicated that with the drop of earning we may have been entitled to Working Tax Credits since Oct 09 which would in turn meant we should have been paying towards the rent and council tax. At the moment we are getting 100% of these benefits, however 100% has only been since Dec 09 due to our earning differing month by month.
Does this mean that Tax Credits will notify HB and C/Tax of this fact so we can expect a bill for overpayment?
Is anyone else aware of any potential issues we may face so we can be prepared.
Thank you

G51shopaholic

It would be advisable for you to speak to Tax Credits as the important fact is not your drop in income but that you are not working more that 16 hrs. That means you are NOT entitled to working tax credit.
You should still be entitled to HB & CT Benefit but unless you work 16hrs your not entitled to Working Tax Credits.
You should still get Child Tax Credits.
When you contact Tax Credits explain that you thought your hours would pick back up but didn't - you maybe allowed to average your hours out over the year so that infact, on average over the tax year you did work over 16hrs, but for claim 2010/2011 you'll need to up your hours to 16

itsconfusing

OMG so sorry, it meant to say that we work less than 30 hours combined

karenx

I hope your not claiming the childcare element also as you both need to be working 16hours plus to get that.
You will probably have an overpayment of working tax credits which will be deducted per week from next years award.

Kimitatsu

To claim the childcare element AND WTC only one of you needs to be working over 16 hours per week.

You wont get an overpayment bill if you tell them now - and even then they will take it out at a nominal rate that you can afford so you wont have to pay it all back in one go. Have you spoken to the tax credit people and told them of your change in circumstances - because you can only backdate your claim by 3 months, so if you wait too long you will lose some of your entitlement.

DreamerV

Kimitatsu wrote: »

To claim the childcare element AND WTC only one of you needs to be working over 16 hours per week.

Just to point out this isn't true in almost all cases To claim childcare element BOTH claimants must be working at least 16 hours per week UNLESS one of them is incapacitated for childcare purposes and the other is working at least 16 hours per week. The definition of incapacitated for childcare purposes is also has quite specific criteria.