HMRC inaccurate letter

zagfles

chriswalessw wrote: »

Might be. Our income has gone down this year which is is fair enough, prob had over that last year. but the fact is they sent me a letter with wrong cap. I have 2 children. If i had not looked it up on HMRC site i would have lost out. HMRC got the letter wrong if you ask me. this should be sent to media so others dont lose out.

Exactly. It's even worse if you have 3+ kids as the HMRC website doesn't give the income limits.

Claimants don't have to report income drops in-year, in fact the advice is often not unless you desperately need the money, because if you get the estimate wrong you could end up with an overpayment.

The letter seems to have targetted those who will get a nil award on the assumption that their income has gone up 4.1% (how many people have had a 4.1% payrise??)

This wouldn't be so bad if they spelt out the assumption it was based on AND they gave correct information about the thresholds. But they aren't. They are telling everyone that the income limit for CTC is £26k.

Icequeen99

chriswalessw wrote: »

Might be. Our income has gone down this year which is is fair enough, prob had over that last year. but the fact is they sent me a letter with wrong cap. I have 2 children. If i had not looked it up on HMRC site i would have lost out. HMRC got the letter wrong if you ask me. this should be sent to media so others dont lose out.

Absolutely agree. I was just asking to try and establish who exactly HMRC had sent the letters to (whether it was people who they thought might be Nil income from April or whether it included people who had entitlement in April as well).

There is no doubt the letter is wrong.

IQ

Murgatroyd21

I agree they should inform people the reason why their individual claim is ending, that way they could decide if they need to call or not, rather than a "one size fits all" approach.

For some, it may be an estimated income increase for the next tax year that would suggest they will be above the threshold causing the letter to be issued. For others, if you haven't updated your information recently with changes that affect your household, then that can cause it.

This is the first paragraph of the letter -

"Your claim for tax credits will end from April 2012 unless you contact us

This is because:
. Your household income is too high to get a payment of tax credits now or
. changes taking effect from April mean that your household income will be too high, based on the information we hold, to get a payment of tax credits.

For most people the income limit for getting Working Tax Credit for a single household is £13,000, and for joint households it is £18,000, but this can vary depending on your circumstances. For Child Tax Credit the income limit is £26,000 for both single and joint households."

In my view it should have stated - the £26,000 limit is for circumstances of only 1 child with no childcare or disability elements on the claim, but if your circumstances are different (such as having more children, childcare or disability) call the helpline to make sure we have all the details affecting your entitlement.

Too, for some who may be reporting a drop in income for next year, because of the £2500 disregard, you may still get no award.

gillianread

3 kids hubby get 31000 i get nothing we had letter this morning newborn, 3 6 years old

iwantasmallholding

Had the same letter, three children one 5 and one 2, spend 200pw on childcare for them, and also have 14 year old in full time education.

My income 32000 - 2I pay 200pm inot the childcare vouchers scheme which apparently reduces my gross pay
My wife just set up as self employed £-3000 year just gone and £7500 projected 12-13

We have been told that we are not able to claim a penny till April 2012 as they go off the previous years earning which for my wife was 30k. but this was the year we needed it most with making a loss paying for stock and training. Where are the systems when you need them most.

This letter was a complete smack in the face being told 26k is the limit. and would have stopped us claiming. but checking out the website linked at the top it looks like we will get childcare paid for.

Icequeen99

iwantasmallholding wrote: »

Had the same letter, three children one 5 and one 2, spend 200pw on childcare for them, and also have 14 year old in full time education.

My income 32000 - 2I pay 200pm inot the childcare vouchers scheme which apparently reduces my gross pay
My wife just set up as self employed £-3000 year just gone and £7500 projected 12-13

We have been told that we are not able to claim a penny till April 2012 as they go off the previous years earning which for my wife was 30k. but this was the year we needed it most with making a loss paying for stock and training. Where are the systems when you need them most.

This letter was a complete smack in the face being told 26k is the limit. and would have stopped us claiming. but checking out the website linked at the top it looks like we will get childcare paid for.

You need to ensure you contact HMRC to have the marker removed from your claim and make sure you remain in the system as you clearly have entitlement.

Also, you can have your tax credits adjusted now, you don't need to wait until April 2012. You just need to tell them you would like to give them an estimate for 11-12 income, and they will get the payments adjusted from now until April and after you do your renewals any money owed from 11-12 due to your fall in income will be paid to you (unless there are overpayments).

Just a note about the childcare vouchers, they do indeed reduce your gross pay but you also have to deduct them from the amount of childcare you claim weekly. E.g. if your childcare is £200 per week and your vouchers £50, you can only claim £150 per week as your childcare costs from tax credits.

IQ

Murgatroyd21

iwantasmallholding wrote: »

Had the same letter, three children one 5 and one 2, spend 200pw on childcare for them, and also have 14 year old in full time education.

My income 32000 - 2I pay 200pm inot the childcare vouchers scheme which apparently reduces my gross pay
My wife just set up as self employed £-3000 year just gone and £7500 projected 12-13

We have been told that we are not able to claim a penny till April 2012 as they go off the previous years earning which for my wife was 30k. but this was the year we needed it most with making a loss paying for stock and training. Where are the systems when you need them most.

This letter was a complete smack in the face being told 26k is the limit. and would have stopped us claiming. but checking out the website linked at the top it looks like we will get childcare paid for.

I may be reading this wrong so let me know if I'm using the wrong details.

Your salary = £32000 - voucher contributions (200pm = £2400) = £29600 - £3000 S/E loss = £26600.

TC entitlement for 2012/13 £96.18pw, will be a bit different for 2011/12 £88.39pw as higher child element next year.

When you first claim, the form only allows last years income. You would get an award showing £0 if the previous year income is too high. You need to call and update with current year details over the phone.

coffeemonster*123

Unfortunately hubby made redundant and as yet no new job on the horizon

not entitled to any TC this year because joint income was too high.

really hope someone can give me an idea of what, if any, tax credits my family may be able to get when new tax year starts.

I work 32 hours pw, earn just under £15k, and we have 3 children in FTE. No childcare costs.
Thanks in advance for any help

Murgatroyd21

coffeemonster*123 wrote: »

Unfortunately hubby made redundant and as yet no new job on the horizon

not entitled to any TC this year because joint income was too high.

really hope someone can give me an idea of what, if any, tax credits my family may be able to get when new tax year starts.

I work 32 hours pw, earn just under £15k, and we have 3 children in FTE. No childcare costs.
Thanks in advance for any help

About £187pw for next year using £15k. If your husband starts work it can affect the entitlement, as can any taxable benefits.

coffeemonster*123

thanks for your reply