Potential payment - Tax credit

big_feet_little_toes

Can anyone help please.....for my annual review in April 2009 I had to give an estimated income (£15000) for 2008/2009 as I had had trouble getting my P45 from an employer during that year. I also told T.C.O that my estimated income for 2009/2010 would be £16,164. My award for 2009/2010 came through based on my £15000 estimate which I was expecting, but it also had a potential payment of £628 which I did not understand. I let this go as I thought it was to do with giving an estimate.
In November 2009 I called T.C.O. with actual income for 2008/2009 (£14,300) thinking that now they had my actual income they would be able to adjust my award and square up the potential payment. Instead it just increased to £673. I am confused because I thought your T.C.A is based on your actual earnings in the previous tax year, so now that they have that info why are they still holding onto the money.

Sorry for the rambling, but this is sooo confusing. Have just completed annual review for 2009/2010 (£14000) and hope that the potential payment will be released.

joanne_d_3

big_feet_little_toes wrote: »

Can anyone help please.....for my annual review in April 2009 I had to give an estimated income (£15000) for 2008/2009 as I had had trouble getting my P45 from an employer during that year. I also told T.C.O that my estimated income for 2009/2010 would be £16,164. My award for 2009/2010 came through based on my £15000 estimate which I was expecting, but it also had a potential payment of £628 which I did not understand. I let this go as I thought it was to do with giving an estimate.
In November 2009 I called T.C.O. with actual income for 2008/2009 (£14,300) thinking that now they had my actual income they would be able to adjust my award and square up the potential payment. Instead it just increased to £673. I am confused because I thought your T.C.A is based on your actual earnings in the previous tax year, so now that they have that info why are they still holding onto the money.

Sorry for the rambling, but this is sooo confusing. Have just completed annual review for 2009/2010 (£14000) and hope that the potential payment will be released.

Hi there.

Yeah , owing to my husband finding himself without a job in september 2009 , we telephoned tax credtits to give them a new "estimate" of our earnings for 2009/2010.

As you know , everytime you inform tco of a circumstance change you get a new award notice out in the post a short while later.

Anyhow , when we got this new award we noticed that it said we had a potential payment due to us . I telephoned to ask them if they could release it to us as funds were low...unfortunately they said they couldnt do that until we had renewed and the reason for this was incase my husband got a new job in which case our income could shoot up again which would leave us with an over payment.

Anyhow , to cut a long story short (eh? lol ) we received our renewal pack on 29th April , that same day i telephoned tco giving them our ACTUAL income for 2009/2010 and within 6 DAYS we had our new payment amounts sorted AND a lovely £1,500 potential payment into our bank account.

I was well pleased , just 6 days to sort it out :T

Hope this helps and hopefully once your renewal is done you will get your payment just as quickly

TaxCreditHelp

Your Tax Credit award is based on your previous year's income, until you provide an estimated income for the current year. This is a good way limiting any chance of an overpayment as you can over-estimate your income and if at the end of the tax year your income is lower than your estimate, you may receive the balance of your award as a lump sum payment.

big_feet_little_toes

Just a quick thanks to all for advice. It's nice to know I'm not the only one who finds this whole Tax Credit thing a nightmare :beer: