Child tax Credit

flowergirls

Having just finished my husbands account. Well last week. He earned about £3500 less them we had estimated. He is self employed. I have rang and told TC. Will they change are award, as when i looked at entiledto. We are getting about £50 a week less then it say?

no-oneknowsme

flowergirls wrote: »

Having just finished my husbands account. Well last week. He earned about £3500 less them we had estimated. He is self employed. I have rang and told TC. Will they change are award, as when i looked at entiledto. We are getting about £50 a week less then it say?

They have 3 options here : first is that they *may* increase the rest of your payments from now until 5th April to take into account the fact that you over estimated your husbands income.

Option two is that they may well hold back the money as a "potential payment" which will then be released to you after you complete your annual declaration just after April time..

Option 3 is that they may pay you a lump some now of a % of what you are owed and hold the rest back as a potential payment.

Did the advisor from tco not advise you as to which option they were likely to take ? If you leave it a week or so and then phone back the advisor should be able to look at your new award and see for you . This happened to me a year or two ago when my OH lost his job , we got the potential payment after renewal in April.

Either way , I estimate that you are owed around £1,400.
(41% 0f £3,500)

(If they increased your payments for the rest of this award it would mean your payments will increase by a massive £175 from now to April)

flowergirls

Thankyou. I phoned last monday. So i will wait until the end of next week. I did ask for the estimate for current year to be £2000 more then the year we have just done. As don t want to end up with a overpayment.

zagfles

no-oneknowsme wrote: »

They have 3 options here : first is that they *may* increase the rest of your payments from now until 5th April to take into account the fact that you over estimated your husbands income.

Option two is that they may well hold back the money as a "potential payment" which will then be released to you after you complete your annual declaration just after April time..

Option 3 is that they may pay you a lump some now of a % of what you are owed and hold the rest back as a potential payment.

Did the advisor from tco not advise you as to which option they were likely to take ? If you leave it a week or so and then phone back the advisor should be able to look at your new award and see for you . This happened to me a year or two ago when my OH lost his job , we got the potential payment after renewal in April.

Either way , I estimate that you are owed around £1,400.
(41% 0f £3,500)

(If they increased your payments for the rest of this award it would mean your payments will increase by a massive £175 from now to April)

I think there are cross wires as to what "estimate" is being referred to here. I suspect the OP's estimate refers to 09/10 income, not current year income. Self-employed people have till Jan 31 after the end of the tax year to complete their accounts, and so on their annual TC declaration in May/June time they can tick estimate - this refers to previous year not current!

If it is 09/10 income which is being referred to the OP should get any underpayment in this tax year and not have any "potential payment" (this is used for current year estimates!)

zagfles

flowergirls wrote: »

Thankyou. I phoned last monday. So i will wait until the end of next week. I did ask for the estimate for current year to be £2000 more then the year we have just done. As don t want to end up with a overpayment.

You won't have an overpayment if you earn just £2000 more this year than last as it's within the 25k disregard.

flowergirls

zagfles wrote: »

You won't have an overpayment if you earn just £2000 more this year than last as it's within the 25k disregard.

O i didn t know that

no-oneknowsme

zagfles wrote: »

You won't have an overpayment if you earn just £2000 more this year than last as it's within the 25k disregard.

Ahhh yeas , thanks for that Zagfles , i see what you mean now.

Sorry OP i was confusing your estimates.

Zagfles - if Op (or anyone) earned £2k more this year you say there wouldnt be an overpayment as its within the £25k disregard but what would happen come renewal time ? Would their payments decrease then because of the extra £2k earned ?

zagfles

no-oneknowsme wrote: »

Ahhh yeas , thanks for that Zagfles , i see what you mean now.

Sorry OP i was confusing your estimates.

Zagfles - if Op (or anyone) earned £2k more this year you say there wouldnt be an overpayment as its within the £25k disregard but what would happen come renewal time ? Would their payments decrease then because of the extra £2k earned ?

Yes - sorry should have pointed that out - there won't be an overpayment THIS year but could be in the "renewal window" in Apr-Jun ie between start of next tax year and when they process the renewal. So best to tell them.

no-oneknowsme

Thanks for confirming that Zagfles