Overestimated taxable benefits - what now?

Tyke000

Hi there helpful people,

I've completed my tax credit renewal forms and have overestimated the amount of taxable benefits I received 2011/12. Does this mean I might have been overpaid or underpaid child tax credits for 2011/12? Pretty confused!

My actual income for 2010/11 was £16,611.
Last year I gave up work half way through the tax year and received Income Support for the remainder of the year. I didn't know Income Support was not a taxable benefit so I estimated that I'd received £2080 taxable benefits for last year, and earned £6413 as an employee. I actually received £0 in taxable benefits and earned £6413 as an employee and have informed HMRC who said they'd be in touch by post ASAP.

Any ideas if this means I've been overpaid or underpaid child tax credits for 2011/12? :undecided

Thanks in advance!

zagfles

You've probably got max CTC anyway, so you've probably had the right amount. If you earn under £16k you get max CTC. Was there a "potential payment" mentioned in the award after you told them you'd stopped working? If so you should get this but I doubt it's much if anything.

Tyke000

Not when I stopped work, but there is a mention of a potential payment in my provisional award letter, as well as a mention of a reduction in last year's award due to my income.
I'd overestimated taxable benefits by £2080, and based on this figure was told of a potential payment of £1583. Last year's award was reduced by £411 due to estimated income.
I used to work for HMRC tax credits and I suspect I'm more confused than anyone!

zagfles

It's probably WTC you've been underpaid not CTC. Were you working 16+ hours? If so you be due extra WTC since they use annual income, if you were getting WTC based on a £16k salary it wouldn't have been much if anything.