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Working tax

tracey_nacey
tracey_nacey Posts: 6 Forumite
edited 1 November 2010 at 5:32PM in Benefits & tax credits
Hi i just wondered. I am working f/t as of feb this year. I got the full amount of tax credits as i was under until april. When i renewed i still got the same £88.00pw even though i said i was earning £12,958,40 this year. Although it said it will drop in april next year so why did it not drop this april as they know what i will be earning this year. Do they go off last years earnings as a guide or as what i was actually paid as i am sure i am being overpaid :( i phoned and they said they can do nothing until next year.

On the renew credits i got back all the workings are right from what i earned from feb to april and the earnings this year. But if they think i am only earning a few thousand this year i am up s**t creek.

I dunno if they work a year in arrears.

Comments

  • Vader123
    Vader123 Posts: 1,104 Forumite
    1,000 Posts Combo Breaker
    Yes they work from last years income.

    Vader
  • tracey_nacey
    tracey_nacey Posts: 6 Forumite
    edited 1 November 2010 at 5:59PM
    So do you think i have been overpaid?

    As they know what i am earning this year as it shows a drop on my award form from april 2011. By aprox £50

    Is it just a guide from last years or is it what they actual pay me because of last years earnings (if that makes sense) they are no good on the phone :( and it has me very worried.

    So they may send a letter saying they have overpaid me as i earned too much this year? even though it says on the renew form how much i am earning this year right down to the penny. Or will they just renew using this years earnings for next years award?

    It just makes me think because some pppl who put in overtime and get tax credits get hammered for it the following year saying they have been overpaid. So therefore i have been paid too much for what i am earning this year if they go off previous year.

    Sorry for all the Q's just i know the problems ppl have with working tax.
  • clairec79
    clairec79 Posts: 2,512 Forumite
    If your estimate of what you were earning this year was under £25,000 more then they still do your award on the old amount without you occuring an overpayment - that' swhat they did with me 3 years ago when upped hours and earned £15,000 more the next year and go to the new amount next April
  • So i should not have an overpayment next year then. Eeee i really do not understand how it works. So i will get the correct amount tax creits as of next year and they should not say they have overpaid me this year?


    Thanks
  • Rebob
    Rebob Posts: 1,010 Forumite
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    I contacted them when I knew we were being overpaid and had our income estimate revised.
    The best bargains are priceless!!!!!!!!!! :T :T :T
  • Rebob wrote: »
    I contacted them when I knew we were being overpaid and had our income estimate revised.

    But surely the tax credits place knows as when i renewed they asked what i would be making this year and i told them.

    I just do not understand. I phone them and they say it will be revised in April 2011.

    I did hear that when i come off benifits i would get the full amount tax credits for a year then it will drop as they go from the previous year. I just wish someone could clarify that for me.
  • BOBS
    BOBS Posts: 2,871 Forumite
    Hi - just found your post and I am worrying too.
    Realised that my payments are currently based on 09/10 income even though the estimation for this year is approx £10000 higher and they have this figure document on my 10/11 award notice - (this is due to husband being out of work in the 09/10 year).

    Using the HMRC calculator I thought I was being paid over by about £80/week. Rang the helpline and went through all this and was reassured that I was getting correct amount due to me as we are still within some bracket ?? Asked him if I would be stung for repaying come April 2011 and he said definitely not.

    I am concerned too that it will come to April and they will tell me that this was all an overpayment and then we really would be in diffs! All seems a bit odd to me as last year when my husband was out of work and I gave them renewed figures my tax credits immediately increased????!!!??
    [FONT=verdana,arial,helvetica][/FONT]
  • tizakez
    tizakez Posts: 1 Newbie
    edited 3 November 2010 at 3:04PM
    I have just been stung with a £2100 overpayment bill from our wonderful government. I was married in July 2008 to my American fiance, he has been an American resident all his life but when I called them and told them that I had married and he would be moving here in the September they told me to call the day he arrived which i did but they have tried to say that i called a little while after! what I can't understand is they asked for his income for 08/09 when he was in the USA but we were not even married then and he was not a UK resident. It is unfair to take into account what his income was prior to us getting married, he had rent to pay along with utility bills and an ex-wife taking as much as she could. Now they are saying they have overpaid me last year! Does anyone know if they can take into account his earnings while he was a resident in another country? :mad:
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