Working Tax Credits & Phantom Shares

Littleali21

Hi, I was hoping someone could help.

Basically, I have been in my current job for 2 years.
I was slightly naive and thought that because I was working, I was not entitled to any benefits, so never bothered to apply for anything.

I then found out that because I work as many hours as I do, but only earn a low wage, I could claim working tax credits.

I tried and tried to call the HMRC line to request an application pack. But was constantly on hold, cut off etc. It got to the point where I had been trying for over a month, so I emailed my MP and he arranged a pack to be sent to me.

I filled it all out, and then got to the part that asks me to write the amount on my P60. I never really looked at it before (again, call me naïve) and was shocked to see the amount. It was £2000+ over my actual salary. This amount also took me over the threshold to claim WTC.

I couldn’t understand this, so went to see the HR woman at work. Earlier in the year, our company was sold. Because of this, we were paid money for our phantom shares (we had no choice in this matter, we HAD to cash them in) this is where the extra money on my P60 is from (as well as a one off £350 performance bonus)

Trust me; I have not gone splashing the cash on luxuries. By the time these amounts were taxed/national insurance and student loan had come out, the amount didn’t even pay off my overdraft!!

So basically, I would like to know, is there ANYTHING I can do? I have tried calling HMRC but get the usual “busy message”

My P60 from the year before shows a true reflection of what I am paid, this years does not. As stated, I should really have started claiming 2 years ago, so it now seems unfair that I cannot get anything because of something I do not usually get, and have no control over.

Any advice is greatly appreciated.

Thanks in advance x

LilacPixie

this year 10-11 will your wage be lower. IE below the WTC threshold. if so you submit the form with the p60 figures from 09-10 then call them in about 6 weeks and lower your 10-11 income estimate

Littleali21

Thank You Lilac

Yes, my wages will be lower, on my P60 it states I have almost earnt 16k... I earn nowhere near that!!!

On this claim form, they have asked for 09-10 figures which shows the 16k. So will they not just reject my application?

Sorry for silly Q's ... I have never claimed anything before so do not understand how it all works.

karenx

You only earn 3k a year? So you got a 13k bonus last year?
If only earning 3k a year and you are eligable for tax credits that means you earn £1.92 an hour? As you need to be working 30hours plus per week to be entitled to working tax credits if you have no children. So 30hours per week x £1.92 an hour equals 3k.

Littleali21

karenx wrote: »

You only earn 3k a year? So you got a 13k bonus last year?
If only earning 3k a year and you are eligable for tax credits that means you earn £1.92 an hour? As you need to be working 30hours plus per week to be entitled to working tax credits if you have no children. So 30hours per week x £1.92 an hour equals 3k.

Karen, I edited out the mistake, I missed off the 1 before the 3. Doh x

LilacPixie

No they won't reject the frm you will get an award letter showing your details but entitlment £0 then when you give a more accurate incoem estimate for 10-11 you will get an award notice with payments on.

Hammyman

Another here for putting in the application then amending the income for the current tax year. The figures will be applied almost immediately so you should receive a back payment plus start getting 4 weekly payments. Won't be a lot but "owt is better than nowt"

Murgatroyd21

As LilacPixie says, your current year income can be updated to allow entitlement to be based on current year estimated figures. Be aware though, if you update with a current year estimate and it is too low, i.e. when you get the P60 next year showing you earned more than you estimated, you will probably have been overpaid and have to repay any overpayment amount. For instance, you should try and consider any increase in rate or bonuses you may get in the year.

Littleali21

Thank you all so much for your help!!

Trust me, it is much appreciated