tax credits potential payment, is this a change in circumstances?

jenny0909

hi, im on maternity leave at the moment, my baby was born end of march and I have claimed tax credits for the first time. I always wanted to do an estimate of my current years income rather than use last years, as I only qualify for maternity allowance (not maternity pay from employer) so my income for this year is really low. I was told that i had to input last years income and then when i received my awards notice i could call them and get the award changed to this years income. It took 6 weeks for my award to come, so for six weeks I was receiving around 40 pounds less a week than I should have been. I thought this money would be backdated and i would receive it in a lump sum, but it has been recorded as a change of circumstances and put down as a 'potential payment' that i will receive at the end of the tax year. Its to prevent an overpayment, but this doesnt seem fair since i know for a fact what my income is this year, so would rather have the money now and risk owing it at the end of the year. it only amounts to a couple of hundred but would rather have it now! i also dont see how this is a 'change in circumstances' since my income has not gone down mid year or anything, it has always been that amount. Its not my fault that the tax credits system doesnt allow me to do an estimate of current years income straight off! seems strange that i cant have it now, since if i had been able to give them this estimate sooner, i would have had that money already! does anyone know if there's any chance of them releasing this money before april next year? thanks in advance

lorelai34

Your 2010-2011 income is going to be lower than your 2009-2010 income so that is classed as a change of circumstances. Everyones claim is assessed on the previous years income first no exceptions. However you didn't actually have to wait for the award letter, as soon as your claim went into payment you could have called and given them your income, you usually get your first payment before you get the award letter. If you call the helpline they can send a referral on your behalf asking for the potential payment to be released early and you would then be informed either yes or no. I don't know what their decision will be but it is an option. The reason they make it a potential payment in the first place is to reduce the potential of any o/p as the way they see it is that no-one will truly ever know their final year income until the tax year ends as you never know what is going to happen.

jenny0909

thanks, yes well thats a bit annoying as did receive first payment quite quickly, and would have called straight away had i not been advised to wait!