Could someone pls help with TC mess?

Merrylegs1969

Hi all,

Yet another child tax credits fiasco, all our own fault. I'll try to keep it brief!

At renewals time last year (2010/2011) we estimated that our income would remain roughly the same, we have two children aged 5 & 6. Husband £34K and me £5K, for which we were awarded £10 per week. Then in June husband lost his job and went on contribution based jobseekers allowance and I managed to go full time. Result was husband £65 a week (I think) and my annual income up to £15K.

They awarded us £43 per week.

At the end of July husband got a part-time driving job earning £7K per year, I proceeded to break both legs in an accident and in the fall out, forgot all about HMRC and/or each assumed the other had sorted it, it was a dreadful time. Anyway, got the renewals form last week and neither of us have updated them that he found a job in July last year, so am really sweating now. So much so, that I can't get my head around what the end result will be.

They have me working 39 hours per week and him nil, while he is actually working 23.

Can any numerate person please help me with this and let me know what I might expect? Am going to call them on Monday and am dreading it.

Thanks!

Merrylegs1969

Any takers?

Icequeen99

Can you give some more information?

1) You said your husband worked part time and you mention 23 hours. Has he worked this since July?

2) You were working full time and then did your hours fall/decrease go back up after you had your accident (hope you're recovering ok!)? Have you worked at all since July? How many hours?

3) What was your 2009-2010 actual income as declared for tax credits and what is your actual 2010-2011 income?

IQ

HappyMJ

If you are on sick leave you are still considered to be working the previous hours that you had. I don't think it'll make a huge difference anyway just fill it out and see what comes back.

Merrylegs1969

Hi, thank you so much for your replies.

We earned approx £39K 2009/2010 and, having worked off our P60s we had estimated the same roughly for 2010/2011.

Our actual earnings for last year came in at £30K in total as husband had earned £10K before going on JSA combined with approximately £6.5K from his part time driving. My earnings were 13.5K.

I've been back at work since Feb, still recovering but getting there, thanks!

So, in summary, we estimated £39K, actual £30K. I've been on 39 hours a week since June last year and husband has worked 23 hours a week since the end of July last year. Although he is still marked down as nil hours by HMRC.

Estimate for next year will be circa £25K

God I'm nervous.

MsShorty

Hi Merrylegs1969.

From what you have posted, you overestimated your income for the year. Therefore, you will have been underpaid tax credits for the year, rather than owing them any money!

As for the changes of hours, from what you have posted, it doesn't appear that the changes you state would move your claim into a different bracket, as they have always been in the 30+ hours bracket, in some shape or form, between you and your partner.

When you renew, give them your P60 figures and, at the same time, advise them of the change in your partner's hours.

I don't foresee any major problems. I am more than willing to be corrected, if anyone more knowlegeable can help out on this one!

Hope this helps and do try not to worry.

Merrylegs1969

Hi MsShorty,

Thanks for taking the time to reply. I can't believe neither of us sorted it out at the time but, I had my accident the week after he started his new job and everything from there on went to hell in a handcart!

We're only just managing at the moment financially and could really do without a bombshell from HMRC stating that we need to pay them back. It's been a long haul this last year, trouble and strife from every direction, it's no wonder my head is a mess! I've been thinking of all the excuses I could offer them but, I do believe honesty is the best policy (not sure why, it's never gotten us anywhere ) and will just come clean and tell them we've dropped the ball.

Just hope they don't think we've been fraudulent.

MsShorty

Hi Merrylegs1969

To be honest, I can't see anything fraudulent, as your tax credits award was based on an income of £39K and you only cleared £30K. Also, despite the fact that your husband started a new job, it did not take you into a different working hours 'bracket' i.e. 16+ hours per week, 24+ hours per week or 30+ hours per week. Looking at your info, it would appear that your joint working hours always stayed in the 30+ working hours bracket.

Looking at the literature they send with your tax credits award, the changes you mention should come under the 'Other changes to tell us about' section which states 'You do not have to tell us about the following changes, but it is in your interest to do so because they may increase the amount of tax credits you are due'. So, are not listed in the section 'Changes you MUST tell us about'.

Please do not worry. Contact tax credits and advise them of the change in your partner's hours.

As you overestimated your income and you stayed above 30 working hours between yourself and your partner, I don't foresee any major problems.

Don't think it appears fraudulent at all, as the changes are not those that you it is compulsory for you to advise to HMRC.

Hope this helps and puts your mind at rest a little bit.

Merrylegs1969

Thanks so much, you've really put my mind at rest. With the year that we've had, we've kind of gotten used to expecting the worst I''m normally quite good at thinking things through logically but got myself pretty well and truly befuddled this time, it doesn't help that it's so complicated.

I'll come back and let you know what happened. It's pathetic that at 41 years old I've been worried about someone shouting down the phone at me :rotfl:

MsShorty

No problem at all, Merrylegs1969.

I hope I have eased your worries a little. You are not being silly at all - you sound just like me. If I don't have something to worry about, I'll always find something

Like you, I am 41 and ringing the tax credits people always terrifies me, too! I am always relieved when my claim is finalised each year.

After the year you have had, I don't blame you for feeling a bit anxious about the whole thing.

Do let me know how you get on and, try not to worry. Glad to hear you are on the road to recovery x

allen35

Did you inform them that your husband was on JSA and is this why they increased your award to £43.

Are you aware that Contribution based JSA needs to be declared as income as well.