Tax credits initial/final award?

caz246

Kyresa wrote: »

Next year you won't be able to do this with the new rules and not allowing people to change for a whole year :mad:

Do what?. Sorry I don't know what you mean.

zagfles

Kyresa wrote: »

Next year you won't be able to do this with the new rules and not allowing people to change for a whole year :mad:

What new rules? What are you on about?

Kyresa

Tax credits from April 2012.

If your income goes down by up to £2500, then you won't be able to instantly get your payments changed and you'd only be able to get your new payments from April 2013.

If your income goes down by MORE than £2500, then you will only get the difference paid immediately and the £2500 "disregard" won't start showing as being paid until April 2013.

http://www.hmrc.gov.uk/taxcreditsbudget/index.htm

Kyresa

zagfles wrote: »

What new rules? What are you on about?

Don't have to be quite so rude.

I know exactly "what I'm on about" as I'm likely to be caught in this trap! My income has now gone down £2000 but with the new rules, they'd keep me on my old income payments for a whole year before changing my payments to my "new income" in April 2013, which would mean getting £70 less per month than I would actually be able to get instantly on the old rules.

zagfles

Kyresa wrote: »

Don't have to be quite so rude.

I know exactly "what I'm on about" as I'm likely to be caught in this trap! My income has now gone down £2000 but with the new rules, they'd keep me on my old income payments for a whole year before changing my payments to my "new income" in April 2013, which would mean getting £70 less per month than I would actually be able to get instantly on the old rules.

Sorry didn't mean to be rude, just wanted to know what you were talking about. Yes there is a £2500 disregard for income falls next year but that doesn't mean you can't "change for a whole year".

In the OPs case there would still have been a very large underpayment but based on a drop from £32000 to £13500 instead of £32000 to £11000.

So your quote "Next year you won't be able to do this with the new rules and not allowing people to change for a whole year " was wrong, the OP would have because her drop was way over £2500.

caz246

Another quick question.

I have read on HMRC website that underpayments are usually only backdated as a lump sum up to 3 months, but as I did inform them of my change of circumstances on 2 occasions (I thought it was 3 but I've called them twice) then will we receive the full amount we have been underpaid for the year?

zagfles

caz246 wrote: »

Another quick question.

I have read on HMRC website that underpayments are usually only backdated as a lump sum up to 3 months, but as I did inform them of my change of circumstances on 2 occasions (I thought it was 3 but I've called them twice) then will we receive the full amount we have been underpaid for the year?

The 3-month backdating only applies to changes in circumstances (such as new child being born, working >30 hours etc) not to income changes. You'll get the whole amount (eventually - after the renewal).