Tax Credits Help Please

chunksafc

Hi, bear with me as this is my first post on the board.

Basically, I moved in with my partner on 1st August. whilst sorting this out i was made redundant, so moved in and we started a new tax credits claim.

My partner works 12 hours a week and I claim contribution based job seekers allowance.

We filled in the form with my income at the job seekers level and my partners wages. we then receive a letter from them (after 6 weeks) saying that because it was a new claim they were basing it on my income from the previous tax year.

Rang them to say my income was wrong and was advised to wait for the notification to come then ring and they would change the income details and amend the amounts. 2 weeks later we get the notification, so ring them and advise them of my income since 1st August. The lady was very nice and says that we will get a payment based on the initial earnings then it will be amended and back dated from 1st August.

1 week later we get 2 payments based on my last tax years income, 1 backdated from 4th August.

Then today we get 1 payment which having just spoke to them is what my weekly amount should be. I rang them to ask about the backdated money and have been told the following: -

"The system has calculated these payments, we are holding £617.00 back incase your income changes between now and April. If it doesn't change we will pay you the £617.00"

When i asked if i could have the money now as we have been waiting since the 1st August the adviser told me that the system had calculated the payments and they would pay the money in case i had to pay in back next year.

Can they do this? The have said as a couple we are entitled to £140 a week and have been since 1st Aug, but are not paying me the backdated money?

Very confused and could really do with the money now, not next April

Murgatroyd21

It sounds like what's called a Potential Payment, and is usually held until the current year is finalised, i.e. after you get your renewal pack and it is all processed, which can be next September. You can demand it, but you have to be insistent. If the advisor won't help, ask to speak to a manager.

chunksafc

Murgatroyd21 wrote: »

It sounds like what's called a Potential Payment, and is usually held until the current year is finalised, i.e. after you get your renewal pack and it is all processed, which can be next September. You can demand it, but you have to be insistent. If the advisor won't help, ask to speak to a manager.

Thanks for that, the advisor told me there was no one i could speak to about it......

Murgatroyd21

They should have made arrangements for a callback which should happen within 24 hours. Always take the name of the advisor you speak to (and the centre they are working in).

chunksafc

Still cant see why they are calling it a potential payment as my income since the start of the claim has been the same and we rang them as soon as they said they were basing it on the wrong figures.

we have done everything they said to do and then they hit us with this

Murgatroyd21

It's a potential payment as it's based on an estimate income for current year. You could have another change at anytime, i.e. increase hours, stop working etc, so the figure isn't set in stone as it were yet.

chunksafc

So there is no chance of getting this payment?

Murgatroyd21

Yes, there is, but it can depend on how insistent you are.

chunksafc

so can anyone explain why they havent paid what (as far as I can see) we are due from the beginning of August

lorelai34

You need to stop thinking that they based your claim on the wrong income. All claims when they are first submitted are based on the previous year income. So your claim was calculated correctly. You didn't have to wait on your award letter before you told them that your income had changed, as soon as claim was fully processed you could have told them that your income for the current tax year was going to be lower. You have now told them your income is going to be lower so they have re-calcululated your award based on the lower income. However the income you have provided for this year is only an estimate so they will normally hold on to any potential payment until after your renewal is completed as technically your income can still change.

The advisor you spoke to was wrong, there is something you can do. The helpline can send a referral to the tax credit office and request that they release the potential payment. The tax credit office will either say yes or no.