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Tax Credits, they have just confused me!
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[Deleted User]
Posts: 0 Newbie

Hi I post here nearly every week about Tax Credits.
IQ has helped me a lot, but if they are not here can anyone else help me.
I had an issue with self employment losses not being applied to 2011/2012 final award. But I will be completing a form to fix this.
Problem is my current year projection has now been amended.
So I called the office and understand that will change when I fix 2011/2012 year.
BUT the man said to me the following;
My 2011/2012 final award was £14K after self employment losses deducted.
So my 2012/2013 will be based on the same value of £14K
He said that if my actual income for year 2012/2013 is no more than £10K more. i.e. Less than 24K. I will not have any overpayment to return.
Now this seems mad to me and I know IQ touched on this in one of their posts.
Is this true? :cool: (Lost!)
And if so what happens because I won't get all the figures fixed until they process this form that I have to return to prove what I am saying about losses? Will this mean I can't change my award from the £27K that they currently have recorded (taken from tax records - don't show losses).
Thanks again, please be patient with me, I am trying to learn
IQ has helped me a lot, but if they are not here can anyone else help me.
I had an issue with self employment losses not being applied to 2011/2012 final award. But I will be completing a form to fix this.
Problem is my current year projection has now been amended.
So I called the office and understand that will change when I fix 2011/2012 year.
BUT the man said to me the following;
My 2011/2012 final award was £14K after self employment losses deducted.
So my 2012/2013 will be based on the same value of £14K
He said that if my actual income for year 2012/2013 is no more than £10K more. i.e. Less than 24K. I will not have any overpayment to return.
Now this seems mad to me and I know IQ touched on this in one of their posts.
Is this true? :cool: (Lost!)
And if so what happens because I won't get all the figures fixed until they process this form that I have to return to prove what I am saying about losses? Will this mean I can't change my award from the £27K that they currently have recorded (taken from tax records - don't show losses).
Thanks again, please be patient with me, I am trying to learn

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Comments
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Anyone please...0
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I think you are talking about the 10K disregard.
http://www.revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-the-disregard/0 -
Yes thank you! I just can't understand why they do such a thing, I suppose it's lucky for those who benefit! :-)0
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Hi I post here nearly every week about Tax Credits.
IQ has helped me a lot, but if they are not here can anyone else help me.
I had an issue with self employment losses not being applied to 2011/2012 final award. But I will be completing a form to fix this.
Problem is my current year projection has now been amended.
So I called the office and understand that will change when I fix 2011/2012 year.
BUT the man said to me the following;
My 2011/2012 final award was £14K after self employment losses deducted.
So my 2012/2013 will be based on the same value of £14K
He said that if my actual income for year 2012/2013 is no more than £10K more. i.e. Less than 24K. I will not have any overpayment to return.
Now this seems mad to me and I know IQ touched on this in one of their posts.
Is this true? :cool: (Lost!)
And if so what happens because I won't get all the figures fixed until they process this form that I have to return to prove what I am saying about losses? Will this mean I can't change my award from the £27K that they currently have recorded (taken from tax records - don't show losses).
Thanks again, please be patient with me, I am trying to learn
Sounds like the helpline were right on this occasion. IF they accept the 14k for 11-12 (and of course you are appealing, so HMRC may decide they don't agree with it in which case it has to go an independent Tribunal). That 14k will be used to set 12-13. Until then 12-13 will be based on whatever figure they hold for 11-12.
Yes, the 10,000 disregard is helpful. It used to be 25,000.
IQ0 -
Thanks IQ
So for once one of their rules may just benefit me!
They say they are sending me a form to complete to confirm the losses now, they say I don't have to appeal, but I don't hold my breath that they will accept what I send. I am thinking about what I should send, I have my tax return ready now and have sent that to HMRC, so was thinking of sending a copy of that.
I just need to wait for the form now, lets hope it is a form :-)
They made me laugh today though. I asked them why they had changed my award, he said to me "We sent you a letter on 31st July 2012, I said ok so you sent me the letter tmro?" MAD
Thanks again IQ - I don't know if you know what I can send as proof and also what this form may be, considering they say I don't have to appeal :-)0 -
Thanks IQ
So for once one of their rules may just benefit me!
They say they are sending me a form to complete to confirm the losses now, they say I don't have to appeal, but I don't hold my breath that they will accept what I send. I am thinking about what I should send, I have my tax return ready now and have sent that to HMRC, so was thinking of sending a copy of that.
I just need to wait for the form now, lets hope it is a form :-)
They made me laugh today though. I asked them why they had changed my award, he said to me "We sent you a letter on 31st July 2012, I said ok so you sent me the letter tmro?" MAD
Thanks again IQ - I don't know if you know what I can send as proof and also what this form may be, considering they say I don't have to appeal :-)
Ok, so it sounds like they are following the proper process and allowing you to 'disagree' with the data obtained from their system. So when you get it, you just need to send the TC825 showing your workings, print a copy of their guidance on the internet and highlight the bit that shows you can deduct partner's losses for the same year from your own income, then send a copy of the SA return and tell them that you are going to file it.
Of course, the idea is that you only give an estimate at this stage and confirm once the return is actually filed, then confirm your actual to tax credits by 31 Jan. You can point that out to them in your response also.
IQ0 -
Thanks very much! I just need the form now, they seem to take forever :-(0
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