single working mother not entitled to tax credits

zagfles

joyzaphinengexpert5 wrote: »

I used to get £202 a week. That would pay my childcare fee of £120 and I'd have a measly £30-40 to buy food with. I started work in November 09. They used my income between Nov and April '10 as being £10,000. I've had the usual tax credit updates I think in August 2010, and now August 2011 or whenever it issame as anyone else but for some reason they're still taking my earnings to be £10,000 which is rediculous seeing as I've updated them every step of the way. How can they get it so wrong??

First they sent me last years final tax credits decision for april 2010 to april 2011 they've put....

income for year 6 april 2009 to 6 april 2010 £10,000
income for year 6april 2010 to 5 april 2011 £25396

working tax credit (other than childcare)
Basic £1923
Lone parent £1890
30hr element £792
Total Working tax credit (other than childcare) £4606
Reduction due to your income £1396
Amount for the period £3210

childcare element of WTC
childcare element £5200
Total childcare element of WTC £5200
Reduction due to your income £0
Amount for the period £5200

child elements
1 qualifying child £2303
family elements
basic £547
total child tax credit elements £2850
reduction due to your income £0
Amount for the period £2850

PAYMENTS
amount to be payed
WTC other than childcare £3210
WTC childcare £5200
child tax credit £2850
total = £11260
minus
payments already made by us £11260
amount due to you £0.00


Then they sent me this years one for April 2011 to April 2012

earnings as an employee £25396

working tax credit (other than childcare)
Basic £1921
Lone parent £1950
30hr element £790
Total Working tax credit (other than childcare) £4662
Reduction due to your income £4662
Amount for the period £0

childcare element of WTC
childcare element £4550
Total childcare element of WTC £4550
Reduction due to your income £3117
Amount for the period £1432

child elements
1 qualifying child £2558
family elements
basic £545
total child tax credit elements £3103
reduction due to your income £0
Amount for the period £3103

PAYMENTS
amount to be payed
WTC childcare £1432
[FONT=&quot]child tax credit £3103[/FONT]
[FONT=&quot]total = £4536[/FONT]
[FONT=&quot]minus[/FONT]
[FONT=&quot]payments already made by us £5115[/FONT]
[FONT=&quot]amount due from you = £579[/FONT]

Right. The problem is your income increased £15k in 2010/11 from the previous year. This didn't affect your payments in 2010/11 because of the disregard, so you were still getting paid a lot in tax credits last year even though your income had gone up £15k.

It seems they didn't know about this increase in income till recently, or they were very slow doing the renewal. This means you were way overpaid for the first part of the year, instead of getting the £87pw you were entitled to you got over £200pw. So they've already paid you more than you were entitled to for the whole tax year.

This really demonstrates the flaws in the tax credits system. The use of the disregard gets people used to getting far more money than they really "should" have for a year, then it's taken off them, compounded by having to repay overpayments.

Think all you can do is apply for housing benefit. You will get tax credits next year (from April) on the above circumstances, even with the overpayment above which will be taken off.

LL30

joyzaphinengexpert5 wrote: »

The local housing allowance is £184, my rent is £179. That's a really good idea about the letters, I really wish I had a record of the updates I gave them in August 2010 now. I'm going to citizens advice and housing benefit is right next door, I haven't had to go to any kind of benefits office since I was unemployed.

I know the feeling, I hadn't claimed anything before I had my daughter and I really knew nothing (my bad!) and didn't want to go down that route at all, but now I'm vigilant with everything benefits wise. That's promising news on the LHA front, at least yours falls below I'll be honest (and I know this won't be popular) but once I worked out the system, I decided to work part time and use the system to maintain me and daughter until she went to school. I know that's bad, but I've paid a lot of taxes over the years and the system allows me to do this and live an OK lifestyle. That was until I got made redundant - I'm seriously thinking Karma got a sneek peek at my thought processes Hope you get sorted x

zagfles

merlin68 wrote: »

I'd give up now if I were you. I read somewhere on this site that tax credits are going for anyone that earns over 25000 next year. It's disgusting.

Don't believe everything you read. Or read past the scare story headlines. There've been hugely biased articles screaming such things but when you read the details they admit it only applies to a specific circumstance, not "anyone".

The truth is that the OP will carry on getting tax credits next year. The £25k limit only applies to families with one child AND no childcare costs AND no disabilities.

Families with more than one child and/or childcare costs will still get tax credits on incomes much higher than £25k.

joyzaphinengexpert5

right, next step ring tax credits and ask why the hell they used 10,000 knowing fully well I started work in November. Yes this is flawed. I hope I don't get into too much debt because of all this. Thank god I had money aside for xmas.

Jessikita1983

joyzaphinengexpert5 wrote: »

I'm not actually going to quit it was just a rant. I want to raise my son in a responsible household set a good example as best I can as a single mother that is.

Fair play to you. That is the problem with the country, made it to easy and it better for people to be on "benefits" long term than to work.

Not having a go at the people for taking this, more a fault of the government, so sorry I can be of no hope.

Just wanted to say fair play to you!

Can you get CSA from your child's Father? (Sorry if you have already answered that and I've missed it!)

joyzaphinengexpert5

went to CAB today. Asked how I was meant to fund my existance for the next few months. Her suggestion was to let them keep overpaying me. Like I'm suddenly gonna walk into a pot of gold in a month or 2 and be able to pay back the over payments. I asked for some benefits advice she said they can't can give benefits advice but as everybody is different she can't really help me. !!!!!!!!

My only option now is to reapply for housing benefit and hope I get more than the £3 I was getting previously.

joyzaphinengexpert5

Oh I've been a long time applying for CSA not seen a penny, I have an estimate that he's meant to give me £23 a week but I doubt I'll see it any time soon and he's bound to dodge. I cannot rely on that waste of space, if I did he'd quit his job and I'd be back to square one.

skibadee

I feel really sorry for you......your trying to do the 'right thing' and no-one is helping you.....just about says it all about the state of this country.
In my experience CAB have become pretty useless of late....we have a community Law Centre where I live...which is great they give so much more help for free than CAB!!

I hope you get something sorted soon.

gabby71

Hiya

I'm in exactly the same boat as you - I'm a single mum of 1 daughter who is 13.
I work full time and my Daughter lets herself into the house after school and is ther for a few hours on her own until I get in from work at around 6pm - it's far from ideal but it works and she never complains bless her...
I was getting £39 per week in tax credits based on last years gross earnings of £19,600.
I have just had a promotion at work but due to the nature of the job I now take home less each month (I work in a call centre and now I am not on the phone taking calls I am not earning the £400 apprx that I was getting in incentives).
Called HMRC last week to advise that my estimated income for the period 2011/2012 will be around £17,500 (due to the loss of incentive) and they upped my weekly payment to £59.
Like you, I have never sponged as I want my daughter grow up with proper values and self worth.
Unfortunately my wages each month are swallowed up by rent and bills etc - I need to put £20 petrol in the car for commuting each week so that leaves me £40 for shopping, dinner money and bus fare (as I live about 50 metres inside the 2 mile radius for free school transport!!).
I think that it is absolutely disgusting that we are working our backsides off and barely scraping by when there are people who have never worked a day in their lives bumming off the state and getting everything for free!!!
I pay £500 rent each month - have been told I do not qualify for any housing benefit and would love a council or housing authority home as the rent would be less each month - no chance because all the scroungers have taken them!!!!!!

Sorry for the rant but I am stressed, skint and at the end of my tether!!!!

Gab

Fiver29

gabby71 wrote: »

Hiya

I'm in exactly the same boat as you - I'm a single mum of 1 daughter who is 13.
I work full time and my Daughter lets herself into the house after school and is ther for a few hours on her own until I get in from work at around 6pm - it's far from ideal but it works and she never complains bless her...
I was getting £39 per week in tax credits based on last years gross earnings of £19,600.
I have just had a promotion at work but due to the nature of the job I now take home less each month (I work in a call centre and now I am not on the phone taking calls I am not earning the £400 apprx that I was getting in incentives).
Called HMRC last week to advise that my estimated income for the period 2011/2012 will be around £17,500 (due to the loss of incentive) and they upped my weekly payment to £59.
Like you, I have never sponged as I want my daughter grow up with proper values and self worth.
Unfortunately my wages each month are swallowed up by rent and bills etc - I need to put £20 petrol in the car for commuting each week so that leaves me £40 for shopping, dinner money and bus fare (as I live about 50 metres inside the 2 mile radius for free school transport!!).
I think that it is absolutely disgusting that we are working our backsides off and barely scraping by when there are people who have never worked a day in their lives bumming off the state and getting everything for free!!!
I pay £500 rent each month - have been told I do not qualify for any housing benefit and would love a council or housing authority home as the rent would be less each month - no chance because all the scroungers have taken them!!!!!!

Sorry for the rant but I am stressed, skint and at the end of my tether!!!!

Gab

Why doesn't your daughter walk? We live just inside the 3 mile boundary for free buses and DS (13) and DD (11) both walk. Although not together or they'd be pushing each other under buses.