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Tax Credits + OOA bonus = We owe you
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mummyjuggler
Posts: 1 Newbie
My hubby is currently Op Herrick, to our 'delight' he will receive a doubled bonus for being OOA, thank you Con Dems. However, once that is declared to tax credits we will end up out of pocket. Our children have been without dad for months on end now the system will take back money. So how does my husband get any 'benefit' for his tour? Great publicity for suporting our troops finacially for putting their lives on the line but a little shady in the fact married personnel with children have to effectively pay it back. FAIR?
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I might be wrong, but the bonus is tax free, so therefore shouldnt be counting in you earnings. It is a back-handed way of repaying some of the tax paid whilst away.
When I contacted the tax credit helpline I was told that the OOA bonus would not effect Tax credit.
Also which aspect of tax credit are you thinking about....working tax credit or child care aspect of it.
Which ever way it works out I hope it works out for you and not the tax man! I owe £5K in over payment, which I am challenging, but IMO the whole tax credit system is floored beyond JPA proportions. The gov. give you an amount based onwhat you think you'll earn, then claim it back if you earn more than thought. Were is the incentive to improve yourself......Proud to have dealt with our debtsStarting debt 2005 £65.7K.
Current debt ZERO.DEBT FREE0 -
you dont count ooa bonus as earnings with tax credits the same as loa is not counted neither0
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The thing with tax credits is that they ask for your gross income, which of course will include bonuses etc etc. Its about as clear as mud!0
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The thing with tax credits is that they ask for your gross income, which of course will include bonuses etc etc. Its about as clear as mud!
I believe it gross taxable earnings....OOA is tax free so not counted. It shouldnt show up on your P60, which is what they recalcualte the tax credit on at the end of the financial year.
Dont meantion it until you have to renew your tax credit. (Usually around April -July) When completing the decloration take the fiqure from your P60.
However I see Martin on Watchdog tonight have a go at the Tax credit phonelines.
You enter the phone system, spend 5 minutes on the phone to then be told the department is busy, please try later....and they disconect the call. HELPFULL NOT!!!!!Proud to have dealt with our debtsStarting debt 2005 £65.7K.
Current debt ZERO.DEBT FREE0 -
it is gross taxable earnings, on pay slip on left hand side it shows what your hubbies gross earnings are for that year if you cant wait for your p60.
no taxable benefits are not included0 -
Pete,
A good number for Tax Credits is - 01355 359007
This gets you direct to an operator and not through the computer call system.
Were in the process of a new tax credits claim, and it might take up to 6 months to be processed. A good job its backdated.0
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