Tax Credit Problem

phoebebanford

I have just had my renewal form and it didn't include either my Carers allowance for our disabled daughter or my wifes carers for me. I have phoned them and told them that we get it but for 2009-2010 it has not been included and at £2700 each one it is just over £5000 they claimed they didn't know about. She said not to worry if I had done everything possible to let them know.

Now the thing is I am on Income Support (I am disabled) my carers and my wifes carers is therefore taxed etc through Income Support and the amount of IS is lowered to take into consideration our carers. Will there be a probem now with Tax Credits? I am already taxed in our CA so cannot be taxed again but what will happen to my TC now they have finally got the message. The DAY we were awarded Carers we phoned Tax Credits as we have had problems in the past.

I need some advice please on what will happen and will they lower our future amounts when we are already taxed in it through Income Support

Thanks Simon

kaylzbob

It shouldn't be an issue as CTC only starts to get reduced once your total income goes over £16000. I would ask about it though cos if it has been an adviser error this should be highlighted as someone not doing their job correctly!!

dundeediva

Sorry but the previous advice is wrong! CTC drps after just over 6k! However if you receive a non taxable social security benefit eg. IS, you get the max CTC anyway. Hope this helps x

kaylzbob

dundeediva wrote: »

Sorry but the previous advice is wrong! CTC drps after just over 6k! However if you receive a non taxable social security benefit eg. IS, you get the max CTC anyway. Hope this helps x

Nope sorry, this is wrong. It's Working Tax Credit that drops after £6420, CTC doesn't get reduced til just over 16k

http://www.hmrc.gov.uk/rates/taxcredits.htm

"First income threshold for those entitled to Child Tax Credits only £16190"

compoff

It won't matter anyway as you are on IS, your income is not taken into the calculations. This may well be the reason why the figures were not already on your records

phoebebanford

So either way I am OK. I am only On Income Support, my wife being my carer. When I claim IS they take into account my carers for my daughter and my wifes carers for me and we are taxed on it.

As all calls are recorded I am sure I will be fine. I was worried next years CTC would be nil because of them failing to put my carers into the equasion. However, thanks for the advice.

I have had never ending problems and only when I got my MP involved have they sorted it. Without a single change in circumstances in years they claim I have had a £18000 overpayment, yes 18 grand. They wrre paying me via giro because they couldnt somehow pay into my account, and then theor own system said we had received both giro and bank payments resulting in a massive overpayment. They were horrible with us on the phone saying we would have to pay it all back and we should have thought about it before spending the money. We never did receive the bank payments they claimed we had. We got our MP to write and asked them to prove it, which of course they couldnt. I had all my bank statements so I knew we were in the right. Eventually they appologised and even stated they owed us £600.

So I don't need to worry then our only income is Income Support Dla Carers and CTC. As we are already taxed on the Caers via IS we wont have a massive payment to pay them neither will they reduce our future payments..

Thanks all this forum is a lifesave I was worried sick. I have enough to deal with having incurable cancer than to worry about CTC

Thanks again xxxx

Simon