Tax Credits Stopped Correctly?

chambta

Last tax year (2011/12) I earnt £35k which with two children means our £10pw has stopped. Of that £35k approx £8k was bonus related and this tax year I expect that to drop in half at least leaving me below the point I am entitled to them again.

Do I have to wait until next year to confirm this with them for the payments to re-start in April 2013 even if I know my income will be below now?

Wiley

you can contact them and provide an estimate for the coming year and they will pay you based on this estimate.

chambta

Wiley wrote: »

you can contact them and provide an estimate for the coming year and they will pay you based on this estimate.

I should have said that I did call them and tell them this but they've stopped them anyway. I'll call tomorrow if I get chance.

Wiley

when did you phone them?

Icequeen99

Wiley wrote: »

when did you phone them?

Did you get a letter telling you that tax credits would stop and you should contact them by 31st March? Did you contact them before that date?

If you did, then you still have a claim but the payments will be Nil. So you will still get your forms to declare income and your claim will be adjusted.

However, if you didn't and you have no claim for 12/13 then you will need to make a brand new claim.

IQ

Wiley

Icequeen99 wrote: »

Did you get a letter telling you that tax credits would stop and you should contact them by 31st March? Did you contact them before that date?

If you did, then you still have a claim but the payments will be Nil. So you will still get your forms to declare income and your claim will be adjusted.

However, if you didn't and you have no claim for 12/13 then you will need to make a brand new claim.

IQ

as above, but in addition to this, if you did phone them and ask them to cancel the withdrawal of your claim, it will still be getting based on what you estimated last year, but if you phone them now and give them an estimate of what you think you'll earn this year, they'll base it on this right away, no having to wait to get your declaration pack.

totallybroke_2

Interested to know what tax credits said when you rung them?

chambta

Thanks for the responses - I called them in March and asked them to cancel the withdrawal of my claim. At that point I estimated my income for the coming year and from what he said at that time I anticipated the payments to continue.

Didn't call today so will try tomorrow.

SkyeKnight

I'm sure someone will correct me if I'm wrong, but if your income last year was £35k and your expected income next year is £31k then I think you won't qualify for tax credits. This is because of the new disregard for falling incomes of £2.5k.

This means that your claim for this year will be based on £33.5k (£31 + £2.5k disregard) which is over the approx £32k that would qualify you for tax credits.

Icequeen99

SkyeKnight wrote: »

I'm sure someone will correct me if I'm wrong, but if your income last year was £35k and your expected income next year is £31k then I think you won't qualify for tax credits. This is because of the new disregard for falling incomes of £2.5k.

This means that your claim for this year will be based on £33.5k (£31 + £2.5k disregard) which is over the approx £32k that would qualify you for tax credits.

Yes, having re-read the OP I see they were saying they might get half the bonus (i read it originally as losing it all).

They might be borderline unless there are any disabilities or childcare costs.

IQ

chambta

SkyeKnight wrote: »

I'm sure someone will correct me if I'm wrong, but if your income last year was £35k and your expected income next year is £31k then I think you won't qualify for tax credits. This is because of the new disregard for falling incomes of £2.5k.

This means that your claim for this year will be based on £33.5k (£31 + £2.5k disregard) which is over the approx £32k that would qualify you for tax credits.

If my income falls by £4k it's more than £2.5k though?