Tax credits stopping in April 2012

Anubis_2

Very thorough thoughtful post, I do think they also need to focus on the billions lost in undeclared TAX (able) revenue. At last count, the loss was around 130bn year.

shedboy94

stjman wrote: »

I called HMRc again last night after asking them to leave our claim open for 2012-2013 last week. I gave them our income for the current year along with child care costs and it looks like there will be an entitlement after April. although not at the levels of previous years because of our income increasing, this still shows people must not ignore the letter saying payments will stop after April. Call them, say you want your claim to continue and when you know you full income/childcare etc for year ending April 2012 tell them....they should then calculate any entitlement for the coming tax year.

It looks like HMRC are hoping people will look at the letter and not bother contacting them.....disgrace !!!!

Or maybe you could actually keep HMRC up to date with the correct circumstances. The letter has been sent out based on the information provided by YOURSELF, and HMRC have only discovered entitlement after you finally called them to report your up-to-date details.........Yes it's a disgrace that HMRC are not mind-readers......

shedboy94

Anubis wrote: »

Very thorough thoughtful post, I do think they also need to focus on the billions lost in undeclared TAX (able) revenue. At last count, the loss was around 130bn year.

And if the government (whether it be Toy/Lib Dem/or labour) stopped cutting 10's of thousands of HMRC jobs, then there would actually be enough staff to recover this money.

MissMoneypenny

Anubis wrote: »

Very thorough thoughtful post, I do think they also need to focus on the billions lost in undeclared TAX (able) revenue. At last count, the loss was around 130bn year.

They have started on some of that: farmers are not very happy that they are going to be losing their tax credits when Universal Credits come in. Farmers must have very creative accountants to be able to hide all the money they get from EU farming payments.

They could also do with changing the bankrupcy laws and stop the syphoning of money to a husband/wife, before they declare bunkruptcy. It's not fair to other businesses who don't get paid as it may make them go bankrupt too and in the case of people like Grant Bovey and Anthia Turner, it is unfair to the taxpayer.

stjman

shedboy94 wrote: »

Or maybe you could actually keep HMRC up to date with the correct circumstances. The letter has been sent out based on the information provided by YOURSELF, and HMRC have only discovered entitlement after you finally called them to report your up-to-date details.........Yes it's a disgrace that HMRC are not mind-readers......

I suggest you read properly....awards for year end 2012 are based on income earned up year end 2011......which my details are up to date......awards for after April 2012 are based on what we have earned up until end April 2012...which I have calculated and informed HMRC...so you will see I am not up to date but a step ahead......

correct me if I am wrong ?

stjman

stjman wrote: »

I suggest you read properly....awards for year end 2012 are based on income earned up year end 2011......which my details are up to date......awards for after April 2012 are based on what we have earned up until end April 2012...which I have calculated and informed HMRC...so you will see I am not up to date but a step ahead......

correct me if I am wrong ?

by the way, yes they had a calculation of our earnings for year end 2012 and based on these figures the letter stated zero entitlement after April....our earnings are actually MORE after calculating what we will earn up until end March...which is what I told them and now they are saying there WILL be entitlement.

zagfles

Icequeen99 wrote: »

I don't think HMRC have failed to take into account childcare. The letters have gone to everyone who HMRC THINK will be nil award from April based on the info on the system.

Most of the cases I have looked into further, like this, are because HMRC are basing awards on PY income (don't have a CY estimate) or the childcare costs/other info is not up to date.

IQ

But that doesn't seem to be the case. In both the OPs case, and the PP I replied to, their income had gone up, and by more than the usual inflationary rise which HMRC assume. So even if they were using PY or PY+inflation there is certainly not a NIL award - the award would be even higher than we calculated!

And their childcare details on the system must be approximately correct judging by the amount they are currently being paid.

Besides which the main issue is that HMRC are giving blatently incorrect info in the letter, and not spelling out the assumptions on which they base their conclusion that the claimant is no longer eligible.

eadieb

About a month ago I trawled the internet trying to find the new base figures for calculating tax credits from April 12 and did struggle. I am in complete fear of ours stopping as it is our food money but I think i worked out we will lose about £50 each week under the new rules. tax credits would not tell me anything and the government calculator is no use until the new tax year starts.

I think a lot of families are in for a big shock in a few months when they lose all or most of their tax credit money. When the government first anounced the cuts there was lots of press about the initial reductions in april 2011 but the real cuts take place 2012.

It is difficult to make decisions on whether it is worth working or not. We are having the same debate in our house but be aware that tax credits are likely to be disappearing in the next few years. they will be replaced by universal credit which will have a lot of new and different rules. I dont want to make rash choices about working until I know more detail on Universal Credit - coming soon 2013!

zagfles

eadieb wrote: »

About a month ago I trawled the internet trying to find the new base figures for calculating tax credits from April 12 and did struggle. I am in complete fear of ours stopping as it is our food money but I think i worked out we will lose about £50 each week under the new rules. tax credits would not tell me anything and the government calculator is no use until the new tax year starts.

I think a lot of families are in for a big shock in a few months when they lose all or most of their tax credit money. When the government first anounced the cuts there was lots of press about the initial reductions in april 2011 but the real cuts take place 2012.

The only major loss in tax credits in April is to couples where they work less than 24 hours between them.

The lowering of the thresholds sounds frightening but it's only people who would have been entitled to just the family element of £545 who are affected.

eadieb

Its hard to work it all out. It looked like the thresholds being lowered was going to affect us and reduce what we get but then again it is maths which is not my strong point but I was trying to do the paper calculation which is quite hard work. We are going into the 32,000 level on our income but with 4 dependent children. This 11/12 year we lost all out entitlement to child care costs.