smp and tax credit question

dazzadub

i was informed last night that tax credits disregard first £100 of the smp.

i called them today with are new income firgure for april 2010 to april 2011

smp will be claimed in this tax year.

they removed £3900 from my yearlly figure and told me i would probably get a weekly increase in money.

i asked question about what happens to the money we didnt get from april when smp was claimed from, they said you wont get a lump some and you will get it back dated form today until the claim is recalculated.


hows this fair, surely you think they would give you all this back as it was them who never told me they disregard the first £100 back in may when claim was made.

can someone please help on this matter so i can call them again

trufflebuggy

Are your tax credits calculated on the previous year or current year?

dazzadub

current year.

trufflebuggy

Oh that's a shame I was going to suggest you told them to base it on this year...... but as it is already is don't know what to suggest.

I don't know about the backing dating side of things sorry......

dazzadub

my sister just said to me because its middle of tax year they will back date all money from may when i made claim but will add it to my remaining payments

and my payments will go up weekly aswell

so basically if they give me £20 a week after recalculation they will give £40 a week 20 for the back dated money and 20 for the recalculation

i dont know if this is right or not but i will wait and see


does this effect hb and ctb

trufflebuggy

fingers crossed hope she's right.

dazzadub

i hope so. the tax credit office said money will go up and they wont give a lump sum.

so maybe thats right.

my sister seems to know everything about every benefit going and all the disregarded stuff also

desperate_for_advice_2

That exact same thing happened to me last year, and ended up in a potential payment that they owed to me for over £1,000. They did not release this money until my renewals for this year was completed, and even then I had months of contacting them to find out why they were not paying it. I'd suggest a quick call to CAB, if for nothing else for your own peace of mind. Tax credits people can be confusing to communicate with, I ended up having to get my MP and other agencies onto their case to sort it out.

Murgatroyd21

I don't think this has been explained very well to you. You're initial award was based on one figure, for arguments sake lets say £8000. This gave weekly entitlement of say £122pw, which would be an annual entitlement of £6344. Half way through the year you find your income should have been £3900 less. They have updated that and will recalculate your new entitlement. It shows you should have been getting say £188pw, annual entitlement £9776.

So, for 26 weeks you got £122 = £3172. Take that from £9776 leaves £6604. Divide this figure by the remaining period, i.e. 26 weeks, and you should get £254pw. So you see, you will get what you are entitled to, but rather than raise your current payments to £188pw and give a lump sum for the difference, they are increasing all your future payments to make sure you still get what you are entitled to for the year.

Personally, I'd wait and see what happens to your payments, as I still believe you will get a backpayment and your money put to £188 or thereabouts, because you had an award in place from about the start of the year and you were entitled to that amount from the start of the award, and a lump sum payment made. Just my view.

Murgatroyd21

Meant to say, if you are still unhappy and want to take things further, see http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/how-to-complain.htm for more information. Tax credit payments are taken in to account for housing and council tax benefit I believe.

dazzadub

great, i will take the advice on board and see what happening, if i havent received anything in next 2 weeks ill give em a call and see what they say.

if i do have issues no doubt ill post on here for advice and see CAB and maybe my solicitor aswell


did u get your money back in the end