Tax credit help needed

headcrash27

Hi, my husband's work is changing and as a result he is taking a substantial pay cut from £25k to £18k. I have been on the tax credits website and apparently we will be entitled to £55 a week. At the moment we only get the minimum £10 a week or thereabouts. My question is once we have notified tax credits of the change in income will we receive the extra payments now or not until next April? As the way i understand it the tax credits we are receiving now are based on last year's income which makes me think that we won't receive anything extra until next year, or is that incorrect? Any help would be appreciated as i am really worried as to how we are going to cope, we have a lot of outgoings and i'm just trying to work everything out as best as i can.

headcrash27

I take it no-one knows then.... It's so frustrating, i've tried to ring them a couple of times to find out but i've been on hold for over half an hour each time so gave up.

broadpaws

if it helps a little bit, my hubby got made redundant and went immediately self employed so our income dropped hugely and we informed TC and our payments were increased iimmediatey. Hope this helps xx

headcrash27

That's great to know broadpaws, thanks for the info. Fingers crossed it will be the same for us then x

MrsBartolozzi

I take it your husband's income will drop soon, this tax year?
If so then they will take this tax year as a whole and give you credits accordingly. Assuming your OH salary changes today: It's over six months into the tax year so you'll have earned ~ £12.5k. In the next 6 months you'll earn ~ £9k = £21.5k in this tax year so you'll only get credits based on this income rather than if you were to earn £18k over the whole year, if you understand what I mean.

celinepatricia

My husband got finished from work due to ill health and capability so we lost 28,000. I informed the tax credits people who told me we were only entiltiled to 600.00 tax credits and we wouldnt get them until next April, so, for now we are having to survive on my measly wages!! When I asked why we would have to wait till next year was told it was just incase our circumstances change and we have to pay it back.. is this right?

no-oneknowsme

Yes , what you have been told is correct.

The "extra" money will be held until you renew your award (- which will happen soon after 6th April 2011 -) and will be classed as a "potential payment".

Come renewal time , when the tc office see's that your circumstances have remained as they are now , the potential payment will be released to you as a lump sum.

This action is taken to ensure that you do not suffer an over payment.

I understand that you would rather have the money now but if you were to receive the money and then your partners work circumstances changes again , come April time you would have had an over payment.

Trust me , no - one if they can help it wants an over payment .

no-oneknowsme

Sorry Celinepatricia , i meant to say. As your Husband has lost his job through illness and capability , what benefits has he looked into applying for ?

There are benefits available to him which would mean you wouldnt have to survive on only your wages.

Make an appointment at your local CAB with a benefits advisor . They are great and can ensure that your Husband gets all the help he is entitled to .

I hope this helps.

headcrash27

MrsBartolozzi wrote: »

I take it your husband's income will drop soon, this tax year?
If so then they will take this tax year as a whole and give you credits accordingly. Assuming your OH salary changes today: It's over six months into the tax year so you'll have earned ~ £12.5k. In the next 6 months you'll earn ~ £9k = £21.5k in this tax year so you'll only get credits based on this income rather than if you were to earn £18k over the whole year, if you understand what I mean.

Oh god, i hadn't even considered this!! I can't believe i could miss something so obvious. I am so worried as to how we are going to cope now... Things were going to be stretched to the max as it was let alone with getting less tax credits than i had thought. I have been onto the housing benefit calculator and it says that we will get increased housing benefit with having less tax credits coming in. I've no idea if that's right or not though and round here housing benefit claims take a couple of months to process so it's a long time to wait with hardly any money coming in.

no-oneknowsme

Mrsbart

You need to contact tax credits now to tell them that your household income is going to drop.

They will ask you to give them an estimate of what you think your household income is going to be for the entire year APRIL 2010 - APRIL 2011 Your payments will then be adjusted accordingly.

Try not to UNDER ESTIMATE the figure you give as you *may* then have an over payment once you renew in April 2011.

You will receive the increase in your payments from now to April 2011.

headcrash27

Also my husband pays £27.00 a week into a works pension. This comes out before tax so he doesn't pay tax on it but i'm confused as to whether or not it is classed as income for housing and tax credits purposes?