CTC & Carers allowance.

SuziQ

I don't have a 'phone at the moment, so can't ring them. It's apparent from the renewal I received today, that they never adjusted my award.
I have the date, time and name of when I contacted them last year to say I had been awarded carer's allowance but can't remember receiving a new award notice- there certainly isn't one in my file but I was dealing with my MIL who was very sick at the time as well as my child with special needs so it slipped my mind- no excuse I know!

Can anyone tell me what sort of overpayment I am likely to have last year please? Is it the full amount of CA? My income support was reduced when I started receiving CA, but I know they are not interested in IS anyway.
I am really worried about how this years award will drop to cover the overpayment and need to start working out my budget as quickly as possible. I receive IS, CA, CTC, DLA at HRC and LRM for my youngest, and a little mortgage interest help. My council tax benefit was unaffected by my CA award and thankfully I have a receipt from them, from when I went in to give them a copy of my CA award.

Anubis_2

If your CA was deducted off your IS, why do you think there is a CTC overpayment? I may be misunderstanding you.

SuziQ

Anubis, I don't know- I just assumed that as CA is taxable, it would reduce you CTC award?

Anubis_2

It shouldn't do because it's already been deducted off your income, therefore they shouldn't deduct it again off CTC.

I think it would only be deducted if you had not got it deducted elsewhere as Income - IE, if you received CA and CTC only then it would be deducted.

I know in my case, the CA is deducted off IS, as is my SDA, but the CTC remain as is.

ETA: I still get the old type child allowance in IS, so not tecnically CTC but the same as. They only deduct CA once on total income. If CA is deducted off your IS it will NOT be deducted off CTC.

SuziQ

Oh that's a relief! I can ring them Monday from my MIL's to make sure and get my award notice changed.

Anubis_2

Here SuziQ - read third post down

If they try to take it off your income twice then you need to challenge it.

http://www.sheffieldforum.co.uk/archive/index.php/t-771936.html

You should also be entitled to HB if you are renting.

SuziQ

Mmmmm- the final post on that link states it IS classed as Income as it was added on to her husband's wage as income so I will have to see what they say, but emphasising that it has already been taken off my IS. I am likely to be back at work by September ( I am currently on a return to practice- health visiting course )and it will be all change again so I will have to see what happens.
Thanks for your advice!

ETA I get a little help with mortgage interest, about £80 a month so no rent or HB.

Anubis_2

SuziQ wrote: »

Mmmmm- the final post on that link states it IS classed as Income as it was added on to her husband's wage as income so I will have to see what they say, but emphasising that it has already been taken off my IS. I am likely to be back at work by September ( I am currently on a return to practice- health visiting course )and it will be all change again so I will have to see what happens.
Thanks for your advice!

ETA I get a little help with mortgage interest, about £80 a month so no rent or HB.

If it was added to her husbands wage as income, this is correct - as it is classed as income for WTC/CTC. Your CA has been classed as income already and deducted. Therefore they will not deduct it again.

When you start work, of you are not earning more than £100 after deductions but still getting Carers and you claim WTC/CTC, your CA for the year will be totalled on that income because you will loose IS ( and therefore there is no other benefit to deduct CA as income off.)

As stated, it can only be deducted once off total income. Your CTC are part of your income along with the IS/CA - so your total income is CTC, IS, CA. Then CA is deducted from that, as they have already made the deductions from your IS for CA, it will not be deducted off CTC too.

Icequeen99

The reason your carer's allowance doesn't affect CTC is because you are on Income Support.

The income test only applies in tax credits if you are not receiving IS/IBJSA/IRESA/Pension Credit. If you are receiving one of those 4 benefits then you get maximum credits, no matter what your other income.

It isn't because it has already been counted for IS as such, but that they presume if you are on IS/IBJSA etc your income is low enough that you are entitled to maximum tax credits.

IS is not counted as income for tax credits.

IQ

Anubis_2

Icequeen99 wrote: »

The reason your carer's allowance doesn't affect CTC is because you are on Income Support.

The income test only applies in tax credits if you are not receiving IS/IBJSA/IRESA/Pension Credit. If you are receiving one of those 4 benefits then you get maximum credits, no matter what your other income.

It isn't because it has already been counted for IS as such, but that they presume if you are on IS/IBJSA etc your income is low enough that you are entitled to maximum tax credits.

IS is not counted as income for tax credits.

IQ

That's what I was trying to say but in a foggy way. :rotfl: