Yet another tax credit problem! please help

msmicawber

Thank you, highland.

pingua

well isn't that daft. So they can overpay on purpose or people can not disclose on purpose..

msmicawber

I don't know, pingua, and must admit to being a bit sceptical. According to what the others are saying, few people would be in an overpayment situation since, surely, not that many CT claimants would earn £25,000+ more in one year than the previous year. I'll be interested to find out for myself whether it's true, though. I note they still want claimants to declare any changes of circumstance within 3 months even though, by the sound of it, most changes won't affect the current claim.

The TC people have told me I was overpaid in the past and have clawed money back, but my income has never increased by as much as £2,500 in a tax year, let alone £25,000.

highland

The £25,000 figure was a massive increase this tax year on the previous £2,500 threshold (as Pam17 said) and it is partly to stop so many overpayments happening again.
If you have a look at one of your award notices I think it should say on there what income you can earn up to before you have to notify them

msmicawber

Thanks, highland. I've checked my award notices and they don't mention actual figures in respect of notifiable changes other than for childcare where a change of £10 per week is mentioned. There's also a big red note to say that they may adjust the award down in the current year to avoid overpayments that would have to be repaid next tax year.

The other reason I wasn't sure about all this is because the TC office staff that I spoke to on the phone didn't seem to know, but if things keep changing then they may be insecure in saying anything in case it's wrong. (I can sympathise with that approach, as my employers change their minds from day to day about how they want us to deal with customers so I tend to sit on the fence myself.)

rich_in_norwich

highland wrote:

yup even if it went up to £33,000 it would still not result in an overpayment as it's within the £25,000 threshold

I wonder how many people this increase in the threshold has benefitted. My partner and I didn't work much in 2005/06 as we had our first baby and both parents wanted to be present for his first year. When we came to getting jobs in 2006/07 we found that in addition to our wages (both of us work now), we get paid benefits as if we were earning the amount we did in 2005/06, and get 80% childcare. Which is fantastic of course. Of course for 2007/08, if we continue to do have the same levels of pay, our benefits will drop sharply, and we will no longer get the 80% childcare subsidy.

pingua

oh it all confuses me ... reckon thats gotta be one of the worst jobs to have - trying to sort it all out and sit on the other end of the phone listening to people going mad. Intresting maybe but no thanks.