Tax Credit Advisor here to help

msmicawber

Hi Kurjam,

A couple of posters on a recent thread said that you could earn up to £2,500pa more than the original estimate before you're in an overpayment situation, and gave a link to the tax credit regulations. I'm really sorry, but I can't find the thread now.

backtomum

I have had some wonderful help on these boards and am really grateful. I posted before to say that I have received a letter from Tax Credits. They have myself and my husband (we have 2 10 year olds) as earning £492 gross per week. I've had a look at payslips and we actually earn £550 per week gross - but if I take out pension payments - it works out at £515.00 per week - £23 more per week than they have us down for. Will we have to pay all of this year's allocation back? I'm really worried.

georgeyoggy

hiya

found this for you....

http://news.bbc.co.uk/1/hi/business/5032876.stm

Scroll down to "What can I do if I have been overpaid tax credit?"

hth

georgeyoggy

kurjam

bbc webpage says this
If the income is greater - but the difference is £25,000 or less - since April this year the HMRC will not claim back any tax credits. For changes before 1 April 2006 much stricter rules applied, with income changes of just £2,500 resulting claims from the HMRC.

does that mean because i have earned £4000 more this year i wont have to pay it back ??

it very confusing !!

kurjam

just found this quote from tax credit officer on bbc website
"He said by increasing to £25,000 the amount a family's income can rise in the year before they lose any tax credits"

does this man you can earn up to £25000 more ayear and you will not have to pay any back !!

i am so confused !!

dandy

drizzlinghoney

I think the overpayment you mention that has resulted from payments continuing to your ex employer from Jan - Aug 2005 is not actually an overpayment, if you see what I mean. When Working Tax Credit used to be paid via the employer, the employer wasn't actually given the money to give to you, I think the employer just paid the Inland Revenue less tax in lieu of the amount of WTC.

For some reason, the Tax Credit computer system believes you were paid from Jan - Aug 2005; does the computer know when you ended that employment? (not the same as a start date for the new employment!). Why don't you call the Tax Credit Office and ask them if they have an end date for that employment - because if they don't have the correct date (January sometime?) the system will think you have been paid, even if you haven't.

I know someone who was in this situation, and once the computer had the right date for the end of their employement, about £6,000 of alleged overpayment disappeared. It's got to be worth a try.

cheryl7003k

Me and hubby are thinking about getting an extension on mortgage, so will obviously be having quite a large sum of money going into our bank account(for home repairs) I just want to make sure that i don't have to tell tax credits, it is not income and not taxable,so is this ok. With it being a loan, not income surely it is ok?

jasper12

cheryl7003k wrote:

Me and hubby are thinking about getting an extension on mortgage, so will obviously be having quite a large sum of money going into our bank account(for home repairs) I just want to make sure that i don't have to tell tax credits, it is not income and not taxable,so is this ok. With it being a loan, not income surely it is ok?

posted in wrong place - sorry!

jasper12

kurjam wrote:

bbc webpage says this
If the income is greater - but the difference is £25,000 or less - since April this year the HMRC will not claim back any tax credits. For changes before 1 April 2006 much stricter rules applied, with income changes of just £2,500 resulting claims from the HMRC.

does that mean because i have earned £4000 more this year i wont have to pay it back ??

it very confusing !!

posted in wrong place - sorry!

Anniek1969

My DH just became self employed and his earnings have dropped to around £13000, we contacted tax credits and they re-calculated our payments.

My question is about the NHS help you get if your earnings are low. I think the threshhold is £15500 so we should now qualify but as his total earnings to April will be around £17000 does this mean that we have to wait till the new tax year to be able to claim the NHS help or can we claim it now as his earnings have now dropped from around £1000pm after tax and NI when he was employed to around £1000 before tax and NI.