Is this TC amount right?

milliebear00001

OK, so I am VERY confused about my Tax Credits. Just received my new notification. Income predicted to double this tax year, compared with last year. Filled in the form confirming last year's income and phoned to let them know new predicted income. I make it about £27500. They are telling me I will be entitled to £5500 in this tax year as CTC for two children. This seems very high to me. Can it possibly be right? I had calculated a much smaller figure using entitledto.co.uk! I am concerned about being overpaid, and also, this large payment takes me over the repayment threshold for my dormant Student Loan, which means I'll have to start paying it back!

alwaysonthego_2

Tax credits are based on the previous tax year's income, just double check your forms for last years income to see if it is correct.

boots1_2

Hiya

We are in the same position as yourself,OH income increased and we have recieved the provisional noticfication awarding the same as last year and like you I was really shocked and worried about an overpayment,I have confirmed with tax credits and on direct gov website and there is a £25000 disregard apparantly.
I posted on here and a benefits advisor did check and said it sounded fine to there is a sticky at the top of the page that explains the disregard that may help
xx

milliebear00001

My award isn't the same as last year. I am not now entitled to any working tax credits at all. The award is purely made up of CTC. I don't understand how they can be basing it on 'last tax year's income' when they have completely removed my WTC?

mitchaa

milliebear00001 wrote: »

OK, so I am VERY confused about my Tax Credits. Just received my new notification. Income predicted to double this tax year, compared with last year. Filled in the form confirming last year's income and phoned to let them know new predicted income. I make it about £27500. They are telling me I will be entitled to £5500 in this tax year as CTC for two children. This seems very high to me. Can it possibly be right? I had calculated a much smaller figure using entitledto.co.uk! I am concerned about being overpaid, and also, this large payment takes me over the repayment threshold for my dormant Student Loan, which means I'll have to start paying it back!

The predicted income is for next years claim i.e April 2011-April 2012.

This years claim April 10-April 11 is based on 09/10 earnings so the £5.5k will be based on the £13.5k or so you just declared.

tigtag02

mitchaa wrote: »

The predicted income is for next years claim i.e April 2011-April 2012.

This years claim April 10-April 11 is based on 09/10 earnings so the £5.5k will be based on the £13.5k or so you just declared.

Then surely this will be a huge overpayment?

moomoomama27

That does seem very high!!

mitchaa

tigtag02 wrote: »

Then surely this will be a huge overpayment?

No, forget about the £27.5k, it does not exist.

The £5.5k that they will receive between now and April 2011 is purely down to the figures declared in 09/10.

The £27.5k is a red herring, it will only be used when the new tax year starts in April 2011. The award will then drop substantially.

mitchaa

£5.5k seems about right for 2 children on a £13.5k declared income.

Each child is worth £2300 in the child elements so that is £4600. Then there is a £545 family element on top, followed by a £545 baby element. That together amounts to around £5.7k for the year. (The award may be a little lower due to the baby element only being applicable to the babies 1st birthday)

tigtag02

mitchaa wrote: »

No, forget about the £27.5k, it does not exist.

The £5.5k that they will receive between now and April 2011 is purely down to the figures declared in 09/10.

The £27.5k is a red herring, it will only be used when the new tax year starts in April 2011. The award will then drop substantially.

Ok - following that (do you work for them) but can you excplain how I always seem to have an overpayment even though I advise of everything as it occurs because surely if this years award is based soley on last years earnings then there should never be an overpayment?

mitchaa

tigtag02 wrote: »

Ok - following that (do you work for them) but can you excplain how I always seem to have an overpayment even though I advise of everything as it occurs because surely if this years award is based soley on last years earnings then there should never be an overpayment?

People end up with over payments by either declaring false info (P60 info is matched) or by phoning up and declaring a change in circumstance. I.e as follows, hypothetical numbers...

08/09 income = £40k. Family receive an initial award of only £545 for financial year 09/10. In August 09, a change of circumstance happens, i.e a job loss, a change in working hours, a seperation from a partner. When this happens they phone up and amend their details. The phone operator then asks for a 09/10 estimated figure to coincide with this change of circumstance. The claimant tells the operator (in Aug 09) there is no chance he/she will earn the same £40k they did before and will now earn only £16k for that financial year.

As a result of the drop of income, the £545 award shoots upto say a £3000pa award (based on the now new figure of £16k) The claimant starts to get paid this additional income. (STRAIGHT AWAY)

In december 09, they get an unexpected £5k bonus or some extra overtime. When April 10 comes along, the P60 shows a figure of £21k. The claimant will have therefore been overpaid by that £5k discrepency in the figures as he/she had specifically told them £16k.

Additionally, errors by the tax credits staff are also partly to blame, sometimes it is their fu*k up.