2009/2010 Child Tax Credits

uk_tom21

First of all, apologies if i'm being completely dense here. I've been reading and tapping on a calculator for two hours now and i'm at the end of my wick.

I'm trying to calculate the amount of child tax credits that were due to us last year as we have just had a statement requesting that we pay some of them back. I just can't understand how they have calculated the 'Reduction Due to Income'. I believe it is based upon a (very) incorrect income, but I have included it for caclulation purposes anyway. Our actual family income was only £9,750 (don't ask!)

These are the details:

Total Family Income (£30,000)
1 qualifying Child (£2,237.45)
Family Element (547.50)
Reduction Due to Income (£1,758.67)
Total CTC Due= 1,026.28

I feel i'm missing something pretty major here, any help would be much appreciated!

JC9297

They think your family income was £30,000 for some reason and the award is based on that.

uk_tom21

JC9297 wrote: »

They think your family income was £30,000 for some reason and the award is based on that.

Thanks for the response, however, i'm not sure how the £1758 reduction is calculated because of this

mitchaa

uk_tom21 wrote: »

Thanks for the response, however, i'm not sure how the £1758 reduction is calculated because of this

They give the full award to everyone no matter what income, they then use the ''reduction due to income'' to taper the amounts to zero.

For example...

Earnings =£50k
Award =£3k
Reduction due to earnings= £3k
Award = £0

The same thing has happened here, they have given full award and due to earnings of £30k have taken off part of that award.

The limit for full award is I think around £16k, anything over and then the reduction due to earnings comes into play.

Question is, why do they think your income was £30k rather than £10k?

Seems strange to me, have you split up with or met a new partner without declaring? Have you declared £10k but earned £30k on your P60's?

Have they just coc*ed up?

JC9297

Yes I was wondering why you were worrying about how they worked out the reduction due to earnings, rather than why they think your earnings were 3 times what you say they were.