Tax credits - Confused

jonnyb1978

Looking to confirm if my tax credits are coorect. Last letter was for the award 06/04/10 - 05/04/11 which is this current year. The award is £3340.71 for the year and has been based entirely on Child tax credit.
Both the working and child element of working tax credit is zero.
So im assuming for the past year we have not been recieving help for child care although we spent £33 a week on child care.

So every week since 06/04/10 we have been recieving roughly £64 a week (3340/52= 64).

Im fine with all that.

From the beginning of January we stopped our child care, we thought this would not change our award as we havet been recieving any child care element. We informed HMRC. On the 21st January we recieve an amendment for the the year award and they have reduced the yearly award to £3084.98. Im assuming a difference of £256 made from not paying child between beginning of January and 05/04/11. Approx 13 weeks and approximately £20 a week less.

Firstly is this correct? The difference is them taking off a larger sum due to my income in the child tax credit.....But my income has remained the same....its the child care that has stopped.

To confuse me even further the amendment states they are writing to us because 'your childcare payments or arrangement have changed', yet over the page on our personal circumstances it still says that we have a qualifying child in child care and still paying £33 a week.

So have they worked this out correct?

They have also included a payment schedule of £36.64 a week until further notice. Thats £28 less than what we were getting before. I had roughly worked this to a £20 difference so giving the date of letter and when new payment started (02.02.22) i assume the larger diiference account to about £80 in overpayments.

However this seems to continue through to the next award 2011-2012 were we will be recieving £35.70. A £30 diiference from what we were recieving before childcare stopped.

How come they still say we are paying £33.00 a week for child care. Is this just a case of them being thick? Which is really why im questioning if its all correct.

So does this sound correct. Even though we were not recieving child care element help, they can still reduce the award for us not paying child care anymore?

How come they have only amended the reduction due to income part of the family elements of child tax credit even though my income has remained the same?

So we have saved roughly £3.00 a week by stopping £33.00 childcare and then losing £30 tax credits. The extra burden on our parents to look after kids is hardly worth the £3.00 saving.

Anybody offer any advice please

Aarons_mummy

Sorry I can't help with your question but you HAVE to call them back if it still states that you are in receipt of money because a child is in childcare they have not changed it on the system.

I have been having a problem for over a year with an overpayment 08-09 where they are not reducing £14,000 to £10,000 for some reason, every notice that comes out it still says the same thing and it will end up coming back on you, call them up and tell them you want the information changed. Take a note of the date/time and employee name/number so that you can back yourself up in the future if they do try and make it out to be your fault.

I'm not sure why you have received a less amount though if you don't usually receive anything towards childcare?! I would give them a call and ask them to explain it if you don't get an answer here