working tax credit rant!

spangles39

Hi,

Need to rant and about tax credit horror. In the tax credit year 09/10 I lost my job and took part time one temporarily. Within the year I did start work full time again, and each time declared to tax credit people of my changes and pay. At the end of that financial year i earned around 9K. As I started my full time job before the end of the financial year, I was able to tell them the at the start what my wages were going to be for the year 2010/11. This was £15k. They sent out letters confirming my predicted income, and adjusted my payments so I thought everything was ok.

This year I have had a tiny increase. Rang to renew and advised them of my salary for this year. Absolutely gob smacked. My payments have dropped by £150 per month. Do they work them out a year behind? Was i foolish to think as my wages hadnt changed much my tax credits would not alter much either.

I wish they made things clearer. I am a book keeper but even I cant fathom the way this works. I am single working mum, and my son is at college. I would be better off working part time as I would get my rent paid, and council tax....I tried to look at the bigger picture and worked full time in preparation for when my son leaves college...but it frustrates me....My son loses his EMA this year,..bills are ever increasing and I would hardly call a £15k job big bucks. To take a hit like this is pretty soul destroying. Why ask you what you are going to earn.....if they ignore it.

Sorry, rant over, thanks for listening.:mad:

zagfles

Yes, that's what happens because there's a big disregard for income increases in year (Gordon Brown's solution to the overpayments farce a few years ago).

So if you earned £9k in 09/10, then £15k 10/11, your 10/11 tax credits will have been based on £9k.

But your 11/12 tax credits will now be based on £15k, so a big drop.

spangles39

thanks fr the explanation Zagfles. I thought i would avoid overpayments etc by telling them at the start of the year what i would be earning....wish they had warned that the next year would be reduced so much. <sigh>