Child Tax Credit - NEVER GIVE AN ESTIMATED INCOME

zagfles

subsoniccoyote wrote: »

I will answer as though PY=2009/10 and CY=2010/11.

The award would be finalised on an income of £20k so there will be an overpayment calculated on the £2k difference.

The 2011/12 (CY+1) award would be based on £25k unless a new lower estimate was provided.

That's what I thought - but Pam disagrees?

Edit: no she doesn't she's updated her post! So we're all agreed then!

athensgeorgia

Pam17 wrote: »

It is also worth bearing in mind that giving several estimates which go up and down during the tax year could mean that an overpayment still occurs or you end up in the last couple of months with no payments at all.
This scenario occurs when someone gives a reduced estimated income in say September of £9500 and then in January calls and ups the estimate to £13000. The new entitlement based on £13000 say works out at £4700 but the claimant has already received £4950 based on £9500 and so has already been overpaid.

My payments didn't alter they stayed about the same. Is this because my hours changed? Starting the year on 18 and increasing up to 36 to ending the tax year on 30.

I still don't know if I should update my estimate tomorrow. I usually have my review done by mid-May but I'm not sure we'd be able to manage on our provisional payments until then (we're about £40 a week down), but then I also don't want to update my estimate if this is going to cause an overpayment this year or even be paying back an overpayment from last with all the changes I made.

zagfles

athensgeorgia wrote: »

My payments didn't alter they stayed about the same. Is this because my hours changed? Starting the year on 18 and increasing up to 36 to ending the tax year on 30.

I still don't know if I should update my estimate tomorrow. I usually have my review done by mid-May but I'm not sure we'd be able to manage on our provisional payments until then (we're about £40 a week down), but then I also don't want to update my estimate if this is going to cause an overpayment this year or even be paying back an overpayment from last with all the changes I made.

If your income goes up then your payments won't usually change - because they'll be basing them on the previous year. The problem we were discussing is where you give an estimate which is lower than previous year's actual - then you will have an overpayment if your estimate is too low.

But I'd have thought your payments would go up if your hours went over 30 as you'd be entitled to the 30 hour element.

athensgeorgia

Thats what I want to know.

2010/11 I earnt £12670, 2011/12 I estimate I'll earn £10500 do I ring Wtc now and estimate? changing my provisional payments or wait until I do my review and tell them then. My last estimate in Feb 11 I said 12670 so I can't see me having too much of an overpayment if I estimate the £10500 and keep them updated throughout the tax if I see my 11/12 figure rising above the estimate.

I hope this all makes sense I'm in work atm and people keep talking to me distracting me I must have re-read what I wrote a dozen times.

zagfles

athensgeorgia wrote: »

Thats what I want to know.

2010/11 I earnt £12670, 2011/12 I estimate I'll earn £10500 do I ring Wtc now and estimate? changing my provisional payments or wait until I do my review and tell them then. My last estimate in Feb 11 I said 12670 so I can't see me having too much of an overpayment if I estimate the £10500 and keep them updated throughout the tax if I see my 11/12 figure rising above the estimate.

I hope this all makes sense I'm in work atm and people keep talking to me distracting me I must have re-read what I wrote a dozen times.

You can do but bear in mind that unlike this tax year just ending, if your income goes above your estimate your payments will reduce when you give them a new estimate (& there'll be an overpayment if you don't tell them).

athensgeorgia

zagfles wrote: »

You can do but bear in mind that unlike this tax year just ending, if your income goes above your estimate your payments will reduce when you give them a new estimate (& there'll be an overpayment if you don't tell them).

Ok many thanks.

michaels

Ok

10/11 I earned much too much in total for tax credits but for the last 2 months and going forward I earn much less so do qualify.

I get nothing for 10/11 but was hoping I would start 11/12 get tax credits based on my current reduced income. Hopefully I will be able to get an increase during the current 12 months and I was hoping that if this didn't take my total income for the year more than 10k above my current annual salary then I would be able to take advantage of the disregard. However it seems they will not look at my current annual salary but only my total income from last year which was based on 10 months of high salary and 2 months of low salary and thus there is no chance of the disregard applying.

This means that should my income only increase towards the end of next year I will lose almost all of any extra money I earn through tax, NI and repayment of tax credits already received

steadynerve

I rang up again today and the operative seemed to confirm that what people have being saying is right in that the disregard applies to PY regardless of what estimates have been made and so estimates don't in the end affect overall award amount just timing differences on what is over or under paid.

So apologies for causing confusion but I think i am now fairly satisfied this is how it works.

It is really annoying that the helpiline operative goive the wrong answers when that is really the only place to go for official advice. It got me thinking couldn't Martin liase with CTC and get some skilled CTC operative posters on the site that could be called upon to clear up threads like this quickly and propogate the correct info??

dj030410

Please could someone help me as I am so confused and a bit worried I have been overpaid.

I started claiming Tax credits in July last year. I called and told them my earnings for 09/10 were £14k, but as I was now on maternity leave and only getting SMP my salary would be a lot lower for the year 10/11. I explained that my salary would be about £5000, but I now think it will more likely be £8000.

Now will I have to pay but for the extra £3000 I got or not because of the £25000 amount?

Thank you so much in advance. xxx

zagfles

dj030410 wrote: »

Please could someone help me as I am so confused and a bit worried I have been overpaid.

I started claiming Tax credits in July last year. I called and told them my earnings for 09/10 were £14k, but as I was now on maternity leave and only getting SMP my salary would be a lot lower for the year 10/11. I explained that my salary would be about £5000, but I now think it will more likely be £8000.

Now will I have to pay but for the extra £3000 I got or not because of the £25000 amount?

Thank you so much in advance. xxx

Yes you will have an overpayment, but as the threshold for WTC is 6420 then your overpayment won't be as much as you fear - 39% of the difference between actual income and 6420 ie about £616