Need help to understand WTC award?

celinepatricia

Can anybody help me understand my working tax credit?

Bit of background.. my husband was finished from work due to ill health he is now in support group esa and gets higher rate dla for mobility and care.

I applied for WTC got a letter from them saying potential payment of 776.97 but only actually got paid 395.81. on the letter it says total income 04/09 - 05/10 37800.00.

Got a letter yesterday saying total income from 04/10 - 04/11 has dropped to 19800.00 and our total tax credits is a big fat zero.

How can we be awarded credits for the year when income was more and nothing for the year income was less?

Naf

Because you only get WTC when you work 16 hours or more?
Any anyway, your Tax Credits are based solely on your income in the previous tax year, unless the current year is likely to be 10k more.

celinepatricia

Thats what i dont understand.. I work 37.5 hours per week.
year 09-10 wtc awarded
year 10-11 when income has dropped from 37800.00 to 19800.00 which is a drop of 18000.00 and no wtc awarded???

nannytone_2

i dont understand how you got wtc with an income of £37k unless you phoned them to revise the amount.
did your income change part way through the year?

celinepatricia

My husband was off sick from july 09 and got sacked in july 10. he got paid his full pay for 6 months and half pay for six months and then went onto ESA whan all sick pay had been used. The figures I am using are the ones Hm revenue and customs have put on the wtc forms.

celinepatricia

anybody any ideas. does anybody have a telephone number for me to ring them that isnt a premium rate number?

celinepatricia

Is there any time limit on appealing this decision. I will write but also wanted to speak to somebody but cannot seem to get through, seems like there are a lot of people having problems getting through on the phone.

kingfisherblue

celinepatricia wrote: »

Thats what i dont understand.. I work 37.5 hours per week.
year 09-10 wtc awarded
year 10-11 when income has dropped from 37800.00 to 19800.00 which is a drop of 18000.00 and no wtc awarded???

I don't understand how you have had any WTC at all, as the cut off point is around £17,000.

celinepatricia

I think maybe it is because i claim severe disability premium for my husband?
I dont really know, all that I do know is we got paid it one year but not the next, that is what I am having trouble understanding.

narabanekeater

do you have children?

zagfles

Your tax credits last year will be based on the lower of your income last year and the year before, ie 19800. Without a disability element this is too much for WTC so you wouldn't have been entitled to any after your husband stopped working. While he was working you'd have been entitled to about £58pw. So the amount you received for last year should have been about £58 for each week he was working between 6 April and when he was sacked in July. Since then you would have had no entitlement.

What is your income likely to be this year? Presumably he's not earning so it's only your wage - if under £18k you should be entitled to some WTC - you can phone in an estimate and they'll pay you based on that - but make sure your estimate isn't too low otherwise you will have an overpayment.