single working mother not entitled to tax credits

joyzaphinengexpert5

I earn £25,350 a year before tax, I have to pay £515 a month towards childcare. A few days ago I was told my tax credits were to reduce to £62 a week. Then I get a further letter saying I've already been paid all I'm due for the year and am now entitled to zero! I worked out this leaves me receiving £50 to little to even cover my basic bills, and absolutely nothing to spend on food, petrol etc. I don't have a credit card, I don't have any debts YET! These are my outgoings and income.....

Outgoings
Tv licence 13
Gas 90
Electric 44
Car tax 11.50
Council tax 110
Virgin 46
Rent 775 (average for havering is £800 before anyone says)
Sofa 20.50 (0% finance)
Water 36
School dinners 43 (can go, but something to take into account when I consider ditching work altogether he'd get free meals).
Childminder 515
total=1704


Income
Wages 1475
[FONT=&quot]Child benefit 86[/FONT]
total = 1561


how am I meant to survive when I'm already £140 a month down before food, petrol etc

Admittedly the virgin TV and school dinners can go, but I work a 43hr week you'd think at least I'd be able to afford FOOD!!


I'm thinking of going to citizens advice tomorrow, do you think they will help? I feel like quitting my job at least then my rent will be paid!

MrsManda

Do you not get Child Maintanence?

Have you put your details into the turn2us calculator to see if you can claim anything else?
http://www.turn2us.org.uk/benefits_search.aspx

HappyMJ

Working people are entitled to Housing Benefit. Apply for it.

Something is wrong with the numbers supplied anyway.

An income of £25,350 would be taxed on the income over £7,475 @ 20% being a total of £3,575 tax on £17,875. You would also have NI of £2,175 per year. Your monthly salary would then be £25,350 less £3,575 less £2,175 then divide the remainder by 12 to be a net salary of £1,633 per month. That's £158 more than you are on now.

Lady_gaga

did you have an overpayment of tax credits and that's why it's stopped?

joyzaphinengexpert5

MrsManda wrote: »

Do you not get Child Maintanence?

Have you put your details into the turn2us calculator to see if you can claim anything else?

I used to get £3 a week HB when I was getting tax credits. Whenever I put my details into that thing it says I'm entitled to £150 a week HB but I don't see how that can be right unless they've been overpaying me tax creds and HB should have been helping instead??

Luckily my £3 a week is only suspended so if I go to them it should only be a few weeks for a reassess?

This whole thing is overcomplicated.

[Deleted User]

I pay £98 per month for gas and electric! Child Maintenance and maybe Housing Benefit. It's sad I know but I was looking at increasing my hours now my Son is at Comp and I worked out I'd have to earn £25000 just to break even what I currently receive working part time and claiming tax credits and a bit of housing benefit (£194 of my £450 rent). My full time equivalent salary is £23000 so I personally would be £2000 a Year worse off working full time!

joyzaphinengexpert5

HappyMJ wrote: »

Working people are entitled to Housing Benefit. Apply for it.

Something is wrong with the numbers supplied anyway.

An income of £25,350 would be taxed on the income over £7,475 @ 20% being a total of £3,575 tax on £17,875. You would also have NI of £2,175 per year. Your monthly salary would then be £25,350 less £3,575 less £2,175 then divide the remainder by 12 to be a net salary of £1,633 per month. That's £158 more than you are on now.

I pay into a pension and a student loan it leaves me around £1495 take home pay. Very impressive though!

joyzaphinengexpert5

Lady_gaga wrote: »

did you have an overpayment of tax credits and that's why it's stopped?

I'm confused lady, first I got a statement saying I was overpaid £590 and they would keep overpaying me til april when I'd be £2000 or something rediculous overpaid. So I rang them and said STOP OVERPAYING ME NOW! Which they will. Now my final statement just says I've had all I'm due for the year, but next year I'll still be entitled to zilch. Confused.com

xx

HappyMJ

joyzaphinengexpert5 wrote: »

I pay into a pension and a student loan it leaves me around £1495 take home pay. Very impressive though!

Add them as outgoings then. Then you can decide whether to continue saving into a pension or not.

joyzaphinengexpert5

HappyMJ wrote: »

Add them as outgoings then. Then you can decide whether to continue saving into a pension or not.

Good idea.


Do people think citizens advice may be able to help me get my head around all this?

zagfles

joyzaphinengexpert5 wrote: »

I'm confused lady, first I got a statement saying I was overpaid £590 and they would keep overpaying me til april when I'd be £2000 or something rediculous overpaid. So I rang them and said STOP OVERPAYING ME NOW! Which they will. Now my final statement just says I've had all I'm due for the year, but next year I'll still be entitled to zilch. Confused.com

xx

This doesn't make sense - what EXACTLY does it say on your final statement? Give all the figures on it including income, elements, anything owing from previous years etc.

You should be entitled to about £83pw based on your OP (that's assuming 1 child) so if you were only getting £62pw you were being underpaid not overpaid.