Tax Credit Advisor here to help

mirrorimage0

just a quick question hopefully, im on working tax and xhild tax credit, i only work 16 hours a week which is in my contract but keep getting asked to do overtime, i rang my tax office and they said this isnt a problem as im allowed to earn upto a certain amount before they ask for any back, is this right.
thankyou.

carlos700

The overtime question they will alter your tax credits award in the following year if you have earned more than what you have told them.We are always in the same position every year my husband can and does do lots of overtime but we are always careful and looking at wage slips making sure he does not go to much over what earnings we have told them as they do reduce your payments next year.

shameless-about-money

robindunne1 wrote:

I'm an accountant that works for the DWP.

Tax Credits are worked on taxable income. Genrally, any income you receive that does not suffer income tax does not have to be reported.

Pension contributions are deductible for tax credit purposes as you do not pay income tax on anything you contribute. You will notice that your P60 may have two amounts on it - one with gross pay and the other "taxable pay" which will be your gross pay less pensions contributions contributions.

The same is applicable for any money given to charity through Gift Aid.

Look here:

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04002.htm

Hope that clears it up.

For Robin Dunne -

I hope you can help me since I haven't quite got my head round how the WTC works in the first place!

Tax year 2005/2006 self-employed
Tax year 2006/2007 self-employed but signed off sick since October 2006 so on IB and IS disability premium and DLA.

I have to change my career because of my disability.

I will, hopefully, be starting a new job in May on £14K basic + commission. However, there will be no commission payments at all for at least three months. Am I still entitled to claim WTC for the months without any commission?

Or is the WTC for 2007/2008 worked out on profit for the tax year 2006/2007? In which case my nett profit for tax purposes is only about £4.5K anyway. I was working 30+ hours per week from April to October but was only awarded DLA in September 2006.

I am single, no children but registered disabled and on DLA.

Thanks in advance

raq

raq wrote:

We had an over payment in 2004 to the tune of £3,500.00. We are still paying it to this day. I have rang the wftc helpline a few times and they cannot tell me when this will be fully cleared up.

2004 being paid £89.00 week
2005 dropped to £29.00 a week
2006 still £29.00 a week

2006 - August , had 3rd baby and not working , only husband working. We are now entilted to £94.51 a week.

I was hoping by April of this year we would have paid all the outstanding balance. I think they where taking £60.00 a week from us. ( I was working part -time, husband full time, no childcare fees as mother looked after children ). If I do my calculations then I would say we finish this by April.

Shock to see that when I had my third baby it went up by very little.

Thanks for your help and a very warm welcome

Hi,

I rang the advise centre who informed me my overpayments with be finished this April. HUGE relieve there. She also said to go onto their website and this will call up what we will be entitled to as from April. When I done this it only gave me with child tax credits and not working family tax credits. We are definately entitled to both. By the way it wasn't https://www.entitledto.co.uk.

Any help here ??

thanks

dexters_mum_2

Hi,
Can anyone advise as to what the length of time from a new application to award of WTC is, sent our form off 4-5 weeks ago, heard nothing and can't get through on the phone, keeps telling me to try later!
Cheers,
DM

madhouseof4

I was wondering if it is possible for someone to help. I had to attend a DLA tribunal last week for my youngest son (2 1/2). We won DLA at the lowest rate. I was told to call the tax credits and inform them, which I have, but can someone give me some indication as to roughly how much extra we may be entitled to on top of what we already get?

Thanks in advance.

shameless-about-money

madhouseof4 wrote:

I was wondering if it is possible for someone to help. I had to attend a DLA tribunal last week for my youngest son (2 1/2). We won DLA at the lowest rate. I was told to call the tax credits and inform them, which I have, but can someone give me some indication as to roughly how much extra we may be entitled to on top of what we already get?

Thanks in advance.

The current and new rates are here -


Rates


Currently it is £11.25 extra per week on CTC, from April it is £11.44 per week extra.

kurjam

so can we deduct pension contributions from our gross amount for tax credit purposes ??
thanks

shameless-about-money

kurjam wrote:

so can we deduct pension contributions from our gross amount for tax credit purposes ??
thanks

Yes - this is also on another thread

boam

Ah ha....Right here goes my woes, last year we was renovating our house and it was totally gutted, to be honest mail was delivered and opened and put in a pile, this included some correspondance from the tax credits asking for some details(again) this got put aside as our circumstances hadnt changed and i thought that you didnt need to tell them if our circumstances hadnt changed, we had a death in the family and my father got admitted to hospital, which was seen as more important...Anyway my gripe is that cos i didnt let them know they sent a letter saying i owed about £300 in overpayments, i disputed this by sending my p60 from year 2005-2006(total earnings about 53k) then it went to some fella that looks into overpayments and he went in favour of the tax credit people, but i can appeal again if i can supply more info? to be honest i have no more correspondance from them other than this so i am at a bit of a loss as to what info they would of wanted from August last year? can you help?

Also another thing is i pay a childminder £200 a week to look after my son, it is in her contract that i pay her even when she does not have him, so if he is ill i have to find alternative ways of looking after him, is there anyway i can claim this cost back somehow?