underpayment tax credits

kerry13238

hi been looking at my earning for this year and i have noticed that it is about £1000 less than the estimate due to no overtime this year will they still back date this at the time of my renewal or will they only back date 3 months worth? not sure cause of the £25,000 disregard

System

Your payments this year have been based on what you declared on last years annual declaration and as long as your income does not increase above that figure by more than £25000 you will be allowed to keep what you have received.

You have said that your income has not increased but rather decreased by about £1000 so whan you complete this years annual declaration with the reduced income figure TCO will recalculate your entitlement for the whole of 2009/2010 and pay you whatever they owe you. They will then use that reduced income figure as the basis for your 2010/2011 entitlement.

inarut_2

Pam17 wrote: »

Your payments this year have been based on what you declared on last years annual declaration and as long as your income does not increase above that figure by more than £25000 you will be allowed to keep what you have received.

You have said that your income has not increased but rather decreased by about £1000 so whan you complete this years annual declaration with the reduced income figure TCO will recalculate your entitlement for the whole of 2009/2010 and pay you whatever they owe you. They will then use that reduced income figure as the basis for your 2010/2011 entitlement.

thank you pam your explanation is excellent, tax credits isnt easy to get your head around,but this post has explained in easy to understand terms

5lilpigs

Pam17, we recently realised that our 07/08 figures were finalised as our o8/09 figures due to them being handed over late due unfortunately to our accountant dying and our books then being delayed with a new accountant. It was only when giving over the actual 08/09 figures recently that this was discovered. The actual 08/09 figures are lower than the original accidental 07/08 figures and were corrected on a statement we received the other day, do you think I can hope for a back payment from the previous year or would it have to have been noticed with in a time scale?

Sorry if this reads confusing, it muddles me just thinking about it:o

5lilpigs

Just giving this a bump:o

System

5lilpigs wrote: »

Pam17, we recently realised that our 07/08 figures were finalised as our o8/09 figures due to them being handed over late due unfortunately to our accountant dying and our books then being delayed with a new accountant. It was only when giving over the actual 08/09 figures recently that this was discovered. The actual 08/09 figures are lower than the original accidental 07/08 figures and were corrected on a statement we received the other day, do you think I can hope for a back payment from the previous year or would it have to have been noticed with in a time scale?

Sorry if this reads confusing, it muddles me just thinking about it:o

You usually have to appeal to get figures corrected after a year has been finalised and from what you have said it sounds as if TCO have accepted the circumstances you have described and so corrected the 08/09 year with the correct figures. If that means you actually received less than they have now calculated you are entitled to then you should receive the balance.

Call TCO and ask them if the correction has shown a balance to pay to you for 08/09 and if there is ask when it will be released.

5lilpigs

Pam17 wrote: »

You usually have to appeal to get figures corrected after a year has been finalised and from what you have said it sounds as if TCO have accepted the circumstances you have described and so corrected the 08/09 year with the correct figures. If that means you actually received less than they have now calculated you are entitled to then you should receive the balance.

Call TCO and ask them if the correction has shown a balance to pay to you for 08/09 and if there is ask when it will be released.

Thankyou Pam:), I'll give them a ring see if there's anything in the pipeline, thanks again:)