Tax credit renewal - general questions (merged)

zagfles

Sweeney1975 wrote: »

Tax credits and company car
My husband is already being deducted company car of 4515 from his tax code of 805l and can only earn 2430 before he charged tax. The ctc want the p11d cash equiv too, this would mean they would e adding another 4 k onto his salary and we will lose more money is this right cos it's already being deducted from his paye tax code , please help I'm very confused. This means his new tax code is 243l


If this in wrong thread I'm really sorry

Yes that's right. Benefits, just like salary, are taxed and they reduce your tax credits. Well company cars do anyway, some other benefits don't (like medical, for some reason)

zagfles

bear70 wrote: »

How about if I'm starting out as a freelance writer? And if my earnings were zero? There wouldn't really be any proof of my employment. Do you think they would accept this "declaration of self employment" and agree to pay the credits?

Best Regards

Bear

I doubt it. If you aren't earning anything and you can't provide evidence of working the hours then you'll have problems. They might pay you initially based on what you say you're working, but if they investigate and you can't provide proof they'll probably make you repay.

Candy53

I gave an estimate before April of my DH's income for this year because we knew it would be over the 26k. Our payment duly stopped on 2nd April.

Now it looks as if this 26k threshold means nothing, as I received, in the brown envelope, our Annual Review doubled up as the Reward notice too for this year. They don't want to know actual earnings for 11/12.

What there is, is Step 1: 'Is your total joint income for 11/12 between £24,032 and £40,000?
If 'Yes' go to Step 2: Is your total joint income for 12/13 likely to be less than £23,202?
If 'No' 'Your Annual Review is Now Complete, and you do not need to do anything else.'
Then told to see Payments Section, and of course told our award is 'Nothing'.

So, where is the 26k or even 25k threshold? Not there. According to this letter it's only £23,202!

Candy

zagfles

Candy53 wrote: »

I gave an estimate before April of my DH's income for this year because we knew it would be over the 26k. Our payment duly stopped on 2nd April.

Now it looks as if this 26k threshold means nothing, as I received, in the brown envelope, our Annual Review doubled up as the Reward notice too for this year. They don't want to know actual earnings for 11/12.

What there is, is Step 1: 'Is your total joint income for 11/12 between £24,032 and £40,000?
If 'Yes' go to Step 2: Is your total joint income for 12/13 likely to be less than £23,202?
If 'No' 'Your Annual Review is Now Complete, and you do not need to do anything else.'
Then told to see Payments Section, and of course told our award is 'Nothing'.

So, where is the 26k or even 25k threshold? Not there. According to this letter it's only £23,202!

Candy

Oh dear, if the above quotes are right then it looks like another HMRC !!!!-up!

The £23202 figure is because of the new £2500 disregard for income drops (the threshold is actually £25702 to be exact rather than £26k, with one child no disabilites/childcare etc).

They would be quite right to use that figure if your income in 2011/12 was over £25702. But they aren't asking you that in step 1, they are asking if it was between £24,032 and £40,000. (£24032 is the threshold for getting family element only in 2011/12).

So if your 2011/12 income was say £24100, and your 2012/13 income is going to be under £34100, then you ARE entitled to tax credits this year but if you let the auto renewal go through you won't get any! Also this won't correct itself on renewal next next year because they won't ask what 2011/12 income was.

I know a few people who get auto renewals so will see what theirs say...

ETA: Just seen a friend's auto-renewal, they have 2 kids, the figures are:

Step 1: 2011/12 income between 30272 and 40000
Step 2: 2012/13 likely to be less than 29763

Exact same problem! They are using the wrong amounts.

That's the second letter they've had from tax credits this year. Both contained incorrect information which could have cost them money.

rayhool

HMRC are a joke!

I have 2 children and our joint income is 31,800 according to HMRC information on their website the threshold for my circumstances is 32,200. My renewal came through saying I was not eligible for tax credits so I rang HMRC to verify my details and the operator agreed I was eligible to receive tax credits but the system said I was not! I asked for this to be escalated but she insisted there was nothing she could do and I had to wait for my new award to come through.

bear70

zagfles wrote: »

I doubt it. If you aren't earning anything and you can't provide evidence of working the hours then you'll have problems. They might pay you initially based on what you say you're working, but if they investigate and you can't provide proof they'll probably make you repay.

Could I just tell them the truth? Namely that I want to sign off JSA and claim working tax credits instead. And that my intention is to generate money working online. I only need to make £20 a week and I'll be exactly the same as now financially speaking i.e. living on about £70 per week. However I'll be able to make more so eventually I'll be better off.

Tia

Bear

zagfles

bear70 wrote: »

Could I just tell them the truth? Namely that I want to sign off JSA and claim working tax credits instead. And that my intention is to generate money working online. I only need to make £20 a week and I'll be exactly the same as now financially speaking i.e. living on about £70 per week. However I'll be able to make more so eventually I'll be better off.

Tia

Bear

It doesn't matter what your intentions are. If you claim WTC you need to work a certain number of hours (16, 24 or 30 depending on circumstances). If you are employed proving it is usually easy. If you are self-employed and make a reasonable amount they'll probably believe you. If you are self-employed making hardly anything then they likely won't and you will need to provide proof that you work the hours you say you are.

meeemee

Hi just wondering if anyone could answer my question, we have only been claiming since march and £106 is paid in weekly, we have two scholl age children and between myself and husband earn £17000 pa, i renewed on mondayand declared our change of wages, our p60's we earn a joint income of£14200 so a drop in wages. Will i still receive the £106 next tues or will they stop it, or will it be more or less, also some people have mentioed extra payments, would i be likely to get two payments in one week or is this only for new claims?
Many thanks for your help!x

zagfles

rayhool wrote: »

HMRC are a joke!

I have 2 children and our joint income is 31,800 according to HMRC information on their website the threshold for my circumstances is 32,200. My renewal came through saying I was not eligible for tax credits so I rang HMRC to verify my details and the operator agreed I was eligible to receive tax credits but the system said I was not! I asked for this to be escalated but she insisted there was nothing she could do and I had to wait for my new award to come through.

Did she enter your income on the system? They must have a procedure to do this since your circumstances could change anyway, which could up the threshold. See what your award says when it comes...

rayhool

Yes she put the information in the system even though I had already given them this information in late March when I started my new job. She couldn't explain why the system was not showing me to be eligible for payments she just wanted to get me off the phone.