Tax credit renewal - general questions (merged)

whamfanuk

anyone not received their renewal form yet?

Icequeen99

no-oneknowsme wrote: »

Hi Joe - you say that you have health issues. Are you in receipt of DLA?

If you ARE receiving DLA then I believe you only have to work 16 hours to be elegible for wtc.

You can qualify at 16 hours via the disability element with other benefits not just DLA.

Also, it doesn't have to be current receipt of a disability benefit if you have had one in the recent past.

The full criteria is available here: http://www.hmrc.gov.uk/taxcredits/tc956.pdf

IQ

pippa2000_2

Rang to renew tax credits yesterday and had seperated figures as husband has done some paye, some self employment and had some JSA. The guy then asked if the JSA was contributions based or income based. The figure I had worked out included some contributions based and some income based. He then said that we did not need to include the income based JSA. I told him I would seperate the figures and ring back.

Does anyone know if this is correct, I am worried that if I give them the revised figure, it will come back to haunt us.

Any info gratefully received.

Pippa

Icequeen99

pippa2000 wrote: »

Rang to renew tax credits yesterday and had seperated figures as husband has done some paye, some self employment and had some JSA. The guy then asked if the JSA was contributions based or income based. The figure I had worked out included some contributions based and some income based. He then said that we did not need to include the income based JSA. I told him I would seperate the figures and ring back.

Does anyone know if this is correct, I am worried that if I give them the revised figure, it will come back to haunt us.

Any info gratefully received.

Pippa

Both types of JSA are taxable, but only contribution based is taken into account for tax credits.

However, HMRC do need to know the periods you were in receipt of Income based because for those weeks they don't apply the income test and you are entitled to maximum WTC/CTC. The weeks where he was not in receipt of IBJSA, they will based on your household income for the year.

IQ

pippa2000_2

Thanks for that, I will check the dates we were in receipt of IBJSA. The estimated income I gave them for the year did however include the IBJSA, as I was not aware, first time we have claimed benefits. Do you know how this wil affect the renewal as out real income will be around 2K less than we estimated.

Thanks again

Icequeen99

pippa2000 wrote: »

Thanks for that, I will check the dates we were in receipt of IBJSA. The estimated income I gave them for the year did however include the IBJSA, as I was not aware, first time we have claimed benefits. Do you know how this wil affect the renewal as out real income will be around 2K less than we estimated.

Thanks again

If the renewal has already gone through, as soon as you get your final award notice, you need to submit an appeal within 30 days stating that the income figure is wrong (giving them the correct figure with breakdown and explain why it is wrong) and also providing dates that you were in receipt of Income based JSA.

I believe that if you get your notice through before 31 July, they can amend it over the phone without doing a formal appeal. Try that route first, if they can't then do the appeal to protect yourself, otherwise you won't be able to change it.

One other thing - when you estimated, are you talking about the figure you gave for 2010-2011 or 2011-2012. If you did give it as an estimate rather than an actual figure, then the process is slightly different because you have until 31st January 2012 to give them the correct figure.

IQ

pippa2000_2

Thanks again,

sorry to confuse, I didn't go through with the renewal at that point when he explained the difference, just said I would revise figures and ring back, so reading your reply, we should be ok.

The estimate figure I gave when my husband when back to work during 2010, so was for 2010-2011, included the IBJSA, so when I deduct that our yearly income will reduce by 2K against our estimate.

I have updated throughout the year when chances ocurred.

Thanks for your help.

1jim

Hi
This has probably been asked before but have just received Tax credit renewal form, I think income has changed but when they ask for joint income is this pre tax/national insurance or is this take home pay after tax/national insurance/pension contributions and childcare voucher deductions?
thanks

RoughRook

Hope somebody can help?

My wife and i are curently on a low income. I look after the kids and she works approx 20 hours per week minimum wage.
However, we do fortunately have some savings and have been using some of these to get by on.

My wife contributed to a pension plan (SIPP) last tax year, using money from our savings.

When the tax credit renewal came through, i read the associated notes, and it stated that pension contributions should be deducted from gross employment income to calculate the amount of income to declare, just like what it does here (from their website):

Step 2: what you need to take off this
What you paid into a pension scheme that’s registered with HMRC. This includes a stakeholder pension and any Free-Standing Additional Voluntary Contributions. Don't show anything that was taken from your wages.

We deducted the gross pension contribution of £3600 from my wife's annual income of £6200.
We thererefore declared £2,600 with a note alongside on the form of '£6200 wages minus £3600 pension contribution. I specifically remember entering this on the form.

I now have a letter from HM Revenue & Customs - Preston Office - stating that my partner never provided an income figure, which i am 99% certain we did, and they now ask to once agian provide an amount earned from employment.

I am guessing that they saw a declared amount of £2,600 and are thinkin that this amount can't possibly be earned from more than 16 hours per week, hence why thay are now hassling us.

They say payments will stop if they receive no reply by 8th July.
Can anyone shed some light on what's going on here?

Thanks

Icequeen99

1jim wrote: »

Hi
This has probably been asked before but have just received Tax credit renewal form, I think income has changed but when they ask for joint income is this pre tax/national insurance or is this take home pay after tax/national insurance/pension contributions and childcare voucher deductions?
thanks

Tax credits are based on gross income (before any tax and NI is taken off) but you are allowed deductions for certain pension contributions, gift aid, childcare vouchers and certain other things.

You can follow the steps here: http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/employment-income.htm which show the figures you need and the deductions.

IQ