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TC help for sister - been told over phone "potential overpayment" but how?figures inc

Hi all, my sis has rang to renew her tc. And asked at the end of the call if all info they needed was there and were the figures correct-
She was told "you could have a potential overpayment but we will write to you" - understandably she's very worried.

I don't profess to be a tc expert, I fact I know little of the ins and outs so figures are below, can anyone help me ease her mind a little.

She started to claim tc in August 2011. Her earnings for 10/11 were 5500, on her tc renewal it states she told them £5500 but then changed this to £7000 (she made the call from my house I remember what was said and he took notes, no mention of 7000 was ever made)

Anyway, 11/12 she only earned £3500 as was a ft mum, (supported by husband prior to split)

Her childcare costs have stayed exactly the same as the initial award notice from August. Nothing has changed

So, if they say she told them she earnEd £7000 in 10/11 and now she's finalised the end of year she only earned £5500 10/11 then £3500 in 11/12 .....HOW CAN THERE BE OVERPAYMENT? Surely if anything it's underpayment if they've based it on £7000 and she only earned £3500?

Can anyone advise, on those figures if there's likely to be over/under payment? Remember, she only claimed from August 2011 if that makes any diff

Comments


  • Anyway, 11/12 she only earned £3500 as was a ft mum, (supported by husband prior to split)

    Her childcare costs have stayed exactly the same as the initial award notice from August. Nothing has changed

    So, if they say she told them she earnEd £7000 in 10/11 and now she's finalised the end of year she only earned £5500 10/11 then £3500 in 11/12 .....HOW CAN THERE BE OVERPAYMENT? Surely if anything it's underpayment if they've based it on £7000 and she only earned £3500?

    Can anyone advise, on those figures if there's likely to be over/under payment? Remember, she only claimed from August 2011 if that makes any diff

    I don't understand the supported by Husband part? When did they split? If it was only recently his earnings count too.

    If is single and has only earn't £3500 that does not equate to 16 hours NMW so she won't qualify for working tax credit or childcare tax credit.
  • brians_daughter
    brians_daughter Posts: 2,148 Forumite
    edited 24 July 2012 at 1:49PM
    I don't understand the supported by Husband part? When did they split? If it was only recently his earnings count too.

    If is single and has only earn't £3500 that does not equate to 16 hours NMW so she won't qualify for working tax credit or childcare tax credit.

    Sorry, haven't made myself clear.

    His earning cannot count- or if so please tell me how and why?

    They never claimed tax credits,when together he has a good salary.

    She only started to claim child benefit for her children in august (eldest is 13!) They split in August last year.

    She didn't work much in 10/11 as stay at home mother when last child was born. Hence low figures of £5500 for 10/11 even tho tc say they've gone off figures of £7000

    In late August/early sept As they split she got a job, minimum wage 18 hours a week, so the £3500 is from late August/early sept til end of tax year

    By my calculations 18 hours from say mid/late August til end of tax year (32 weeks, 18 hours a week at minimum wage is aprox the £3500 she earned)

    Single parent minimum of 16 hours a week, so I cannot see how she wouldn't qualify? As I say I don't profess to be an expert but as far as I know minimum requirements for single parent are 16hrs pw?

    Does that clear things up a little better?
  • Yes thanks. I think best thing to do is check it on a calculator like the one on http://www.turn2us.entitledto.co.uk/entitlementcalculator.aspx

    You can change the Year.
    You don't say how many children she has or what she pays in childcare or how much she was receiving from tax credits so it's difficult for someone else to calculate it for you. When you know what she was due you can establish if she was overpaid or not.
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