Really puzzled with tax credits

ironwright

I done my renewal this week, we over estimated our tax credits but alot. (around £19k under)

Last year income was jointly around £19900.

I called them and asked about payments, they said our new monthly payments were £41 per mth. No lump sum, is this correct or i am being stupid??

taffy83

did they say if this was a provisional payment or your final award ?

ironwright

i phoned them again just now and they say they have to base it on this years income due to us estimating more than 10k.

How pants!!

property.advert

If you cannot get your income within £10k then it isn't much of an estimate as a pretty poor guess is it ?

Loony Labour gave you £25,000 either way. More generous than The Price Is Right.

ironwright

property.advert wrote: »

If you cannot get your income within £10k then it isn't much of an estimate as a pretty poor guess is it ?

Loony Labour gave you £25,000 either way. More generous than The Price Is Right.

This was due to illness but thanks for you negative post. I phoned them today and sorted it out.

no-oneknowsme

ironwright wrote: »

This was due to illness but thanks for you negative post. I phoned them today and sorted it out.

Ironwright , we too had underestimated out income for tax credits. We were £2k under and this morning we received a big lump sum and our new payments have also increased by £25 per week.

Hope you got sorted.

ironwright

Thanks

I phoned them today, and amended our salarys for 2011/12 as realistically over estimated them. My award was based on this salary on tuesday, so with me changing the amounts, will they base 2011/12 award on 2010/11 earned amount or because i have done renewal they will base it on the original amount?

we estimated orginally £41000 changed it today to £27000

(my husband has been informed no overtime will be given due to paycut)

zagfles

I think you've misunderstood, or TCO have told you rubbish...

If your estimate this year is more than 10k over last year, they will base this year's award on this year's estimate minus 10k.

Eg last year £20k, this year estimate £29k, they will base it on £20k.
If last year £20k, this year estimate £39k, they will base it on £29k.

Note also that the disregard doesn't apply to estimates. Any estimate will never affect the amount of tax credits you are entitled to, but can result in under/overpayments if they pay you too much/too little in year.

no-oneknowsme

ironwright wrote: »

Thanks

I phoned them today, and amended our salarys for 2011/12 as realistically over estimated them. My award was based on this salary on tuesday, so with me changing the amounts, will they base 2011/12 award on 2010/11 earned amount or because i have done renewal they will base it on the original amount?

we estimated orginally £41000 changed it today to £27000

(my husband has been informed no overtime will be given due to paycut)

As you have now given them an estimated income of £27k I would expect your payments to rise quite a bit.

Hopefully you wont be waiting too long to find out how much of a rise this will be lol.

Its hard to estimate earnings , well in our case it is as my Hubby is self emlployed and only in the first few years of self employment so we dont know how much our income will be !

ironwright

hi,

Original conversation - guy said as we estimated £43k and only made £19k, they would only use that up to £29k so it's over £10k so they base it on £43k hence the bare minimal.

Havent a clue but doubt we will get any extra payments

zagfles

ironwright wrote: »

hi,

Original conversation - guy said as we estimated £43k and only made £19k, they would only use that up to £29k so it's over £10k so they base it on £43k hence the bare minimal.

Havent a clue but doubt we will get any extra payments

I assume you mean £19k was last year's actual, and £43k was this year's estimate.

If they were basing it on £43k this year you'd get nothing at all (unless you have high childcare or 4+ kids). They will be basing it on £33k.

If you then changed the estimate to £27k, they will be basing it on your £19k from last year. But if you end up earning over £29k you will have an overpayment, so tell them asap if it looks like your income will go over £29k.