2010/11 tax creds - final decision made for me!

ManicMum

Hello

I am self employed and therefore do not need to submit my tax return until end of January 2012. I have always done my tax return towards the end of this period and tax credits have always accepted this (as they should as it's legal). SO my tax credits final decision for 2010/11 should be made early in 2012. Today though I have received a letter telling me that as I haven't given them final amounts for 2010/11 they have made the final decision based on my estimates and if I want to appeal will have to do so in writing.

What the heck is this about? Has something changed I am not aware of or is this a clerical error? Is it worth ringing them based on a clerical error or should I just put in writing? GOd, I wish I was rich so I didn't have to do this tax credit crap. It's such a pain in the butt and so confusing. I'm no dummy but I find my brain is literally fried trying to work it all out and the form-filling. A tax return is easier.

Thanks.

Icequeen99

You are partially correct, but for tax credit purposes you still have to complete your renewal process (either by returning the forms or doing it over the phone) with an estimate before 31st July.

You can then confirm the estimate, or give another figure, by 31st January.

Did you complete your renewals with an estimate?

It sounds as if this letter is saying they have finalised 10/11 on the information they held because you didn't give an estimate before 31st July.

IQ

ManicMum

Thanks

No, I did the renewal before 31st July and they have confirmed this.

Why can't they just adjust people's tax codes - would save all this aggravation.!!

james_stevens

That is very strange. You are of course correct, you should have until 31 January to provide your actual income for 2010/11. As Icequeen stated, that is dependant on you completing your renewal by 31 July which you say you did.

There are 2 types of renewal, "reply required" and "auto renewal".

In the case of "reply required" you are required to respond and provide income details, making clear whether you are providing an actual or estimated amount. If you provide an estimate then they should send you another letter stating that you have until 31 January to provide them with an actual amount. Did you do this and did you make it clear that you had provided an estimate? Did you get the second letter stating that you had until 31 January to provide an actual amount? or, if you was "auto renewal:

In the case of "auto renewal", you are only required to respond if your actual or estimated income is outside of the income range they have specified. If you provide an estimate, you should receive another letter stating that you have until 31 January to provide them with an actual amount. The problem with these "auto renewal" cases is where someone has estimated income within the income range they have specified because you are told not to respond. This means that they are unaware whether your income was actual or estimated. If it was actual income they would be correct to finalise the award but if it was estimated income they should send another letter stating that you have until 31 January to provide the actual amount. The problem in many cases is that because they have told you not to respond if your actual or estimated income is within the range they specified, they do not know whether your income is an actual or estimated amount, so they are unable to provide the second deadline of 31 January to those people with estimated income because they do not know it is estimated income. Do you fall into this category?

Icequeen99

ManicMum wrote: »

Thanks

No, I did the renewal before 31st July and they have confirmed this.

Why can't they just adjust people's tax codes - would save all this aggravation.!!

It sounds like HMRC may have finalised your 10/11 as actual instead of finalise estimate on their system.

I would suggest you might get some specialist advice as this can cause a problem if you need to amend your actual and an appeal might take several months.

You might want to try one of the tax charities like https://www.litrg.org.uk or https://www.taxaid.org.uk

IQ

ManicMum

Thanks

Oh flamin hell - this is all I need. I sent off the renewal form and stated it was estimated. I do not recall receiving a specific letter after this but I have received award notice showing that it was provisional figures. Then they stopped my payments (another story). i started claim up again over phone and stated they were estimates. Now this.

I have sent them a letter today to reiterate they are estimated figures and not final figures. Can they not just change me back again on the computer to awaitiing actual figures?

If not, I will have to contact one of those orgs mentioned.

Thanks for help.

Icequeen99

ManicMum wrote: »

Thanks

Oh flamin hell - this is all I need. I sent off the renewal form and stated it was estimated. I do not recall receiving a specific letter after this but I have received award notice showing that it was provisional figures. Then they stopped my payments (another story). i started claim up again over phone and stated they were estimates. Now this.

I have sent them a letter today to reiterate they are estimated figures and not final figures. Can they not just change me back again on the computer to awaitiing actual figures?

If not, I will have to contact one of those orgs mentioned.

Thanks for help.

I wouldn't be surprised if they can't change it now that it has been finalised unless you appeal.

No harm in asking and if they refuse, lodge an appeal against the latest award notice and contact one of the charities for help.

IQ