HELP greatly appreciated with Tax credit claim 2012/13

purplep1

Hi all,

First of all my apologies if I have written this in the wrong place, I have never used forums before but I'm worrying myself sick about this and desperately need some sound advice.

I'll start at the beginning, I started claiming joint tax credits in Jan 2012 with my fiance after the birth of our first baby. We were both employed full time until I started SMP in Oct 2011, this gave us a joint income of around £26,000 for 2011/12 (I worked 35 hrs my partner works 37) After ringing TC office I was advised we would be able to claim child tc at around £51 a month but if our income were to reduce in 2012/13 (which it inevitably will being on smp) this would dramaticly increase to around £440.00 a month. So I did as I was told and awaited my award notice after 6th April, I rang to give them the estimated reduced income figures for 12/13 which is a basic £493.30 (14 weeks smp) and £16,300 for my partner, the lady estimated we could claim 218.00 a month, when I enquired why this was lower I was advised we were above the income threshold of £17,729 as the disregard of £2500 was in place. A few days and a lot of worrying later I went back through my partners income as the estimate (16300) given to me by his payroll did not seem to match with previous yrs. Looking at the figures again I realised his AVC pension was also included and his estimated income was more like £12,854. So I rang again and explained the situation and was told this would mean we were now under the threshold increasing our payment to £330.00 a month for ctc and wtc. HOWEVER he has now brought his P60 home from work with a total figure of £15430 (over £2500 difference) and due to the incompetence of his payroll department I have given in the wrong info. Now it is looking likely that his income will drop by £770 to £14660 as he works for a local council and there will be some restrictions on pay, but what do I do now, as I have budgeted for £330 as I am not returning to work every £ is accounted for but will the difference be covered once the disregard is accepted on next years claim? I hope this makes sense as I have worried myself sick since and don't seem to be able to get any straight advice from HMRC.

nad1611

I know this is easy to say but try not to worry. For starters you originally gave estimates. So you've done nothing worng and given that you now have actual income figures for 2011/2012 you can sort this all out.
Most people i would think wait until they have their P60's until they make any declaration, probably for this very reason.
Don't forget that if you ring them again with the actual P60 amount, at the same time you can also give them the lower estimate for this current year which you have stated as £14660. They will then make any necessary adjustments.

Are your husbands AVC's gross payments or are these paid after he's received his income ie net income. There will be others who know more than I do but if it's net then you can deduct this from your fiance's salary as a loss against his salary, which might explain why the person in wages said what they did.
I know it's not much but hopefully it's a start.:)

nad1611

Have just done a quick questionairre on the WTC Tax Credits calculator and have had to make lots of assumptions e'g dates of birth, giving an income of £15430 and saying no to any other income which of course may not be the case, but the calculation has come up with, given the baby etc and husbands work hours etc;
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm
Working Tax Credit £950
Child Tax Credit £3042.41 Total £3992.63 divided by 52 is approx.£76.76 = £307 monthly
If you put £14660 into the calculation it's £4254.62 = £327 Monthly


So it doesn't seem far off, obviously it depends if you have other income. For the AVC's he needs to know if it's free standing or in house as regards tax relief.

purplep1

Hi nad, thanks for taking the time to reply I do very much appreciate the help. My partner and I are both 28 and have no other income so I hope the calculator is near the mark. Can I ask what was the different info used to get the two weekly calculations? And do you know if the calculator take into account the £2500 disregard?
Many thanks again.

Hi, ignore my first question I can see now how you calculated the two figures, I'll put that one down to baby brain :-)

nad1611

I'm not too sure about the Income threshold I thought that was if you received Child Tax Credit only. It might make more sense to you if you look at this link.
http://www.hmrc.gov.uk/rates/taxcredits.htm

Obviously in the calculation I didn't have the capability to add any changes in circumstances etc. I put it in as though it was a new claim. Also when you say the SMP was for 14 weeks I presume, you mean that for 14 weeks you get £493.30 weekly?

I know there will be lots of others far more knowledgeable than I am. Hope it works out for you.

Sixer

Note that you also don't count £100 per week of maternity payments when giving them your income.

purplep1

Morning all, yes I've deducted the first £100 each week which leaves me £35.45 x14. Should I wait for my renewal pack to come through or should I ring for a third time with the current estimate for 12/13?
Thanks for all your help.

nad1611

Hi
I suppose it depends on how soon you want things sorted. If you have all the finalised figures then go ahead and ring them. Personally I might be inclined to get it all down on paper at least you'll know that when you get your finalised weekly amount that it's based on the correct info.

I thought this might be useful to read too,albeit more for when you might return to work;
http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/maternity-adoption.htm

spartacusthe1st

I tried ringing up yesterday after my hubby bought home his p60 and they won't do a thing until I get the renewal pack