Tax credits have been stoped, what is the best option for me?

EllaNElsie

Hi

I have learnt this morning that our tax credits have been stopped as my partner and I earnt 26K in the last year, my partner works 37.5 hours a week and I work 25 hours a week we each have a child from a previous relationship (only my daughter lives with us) and one daughter together

We did really rely on the tax credits to do our childcare costs, food and anything that we needed for an emergency week to week.

These are our monthly expenses:
Gas £45
Electric £40
TV License £12
Rent £650
Council tax £100
Childcare £360
Food shopping £300
water rates £10
misc bills and debts £340
child maintainence £200

Thats before clothing the kids and things,we get child benefit,and have never received any maintainance for my eldest daughter.

my question is does anyone have any advice on what to do? Would we be better off if I went back to full time, stayed as we are or just quit work alltogether? If I quit would we be entitled to any help?

thanks

Icequeen99

So you have 2 children living with you?

The cut off with 2 children is £32,000 not 26,000. It will be even higher if you have childcare costs.

IQ

EllaNElsie

Thats right

That is what I thought but the woman I spoke to said it has definatly been stoped due to the amount we earnt last year it definatly was no where near 32k i bring home £725 after tax and my partner brings home £1200 after tax, and last year I was on mat leave so getting 1/2 of that most of the time

my award notice hasnt arrived yet, I only found out it had stopped when I tried paying for my shopping hopefully when that arrives it might be a bit clearer

[Deleted User]

EllaNElsie wrote: »

Thats right

That is what I thought but the woman I spoke to said it has definatly been stoped due to the amount we earnt last year it definatly was no where near 32k i bring home £725 after tax and my partner brings home £1200 after tax, and last year I was on mat leave so getting 1/2 of that most of the time

my award notice hasnt arrived yet, I only found out it had stopped when I tried paying for my shopping hopefully when that arrives it might be a bit clearer

Did you remember to deduct £100 for each week of SMP you received? Sounds like they only have you down for 1 child for some strange reason?

EllaNElsie

Deleted_User wrote: »

Did you remember to deduct £100 for each week of SMP you received? Sounds like they only have you down for 1 child for some strange reason?

No I wasnt aware I had to, oops!
On the last award notice both the kids were definatly on there and I ticked the bit about no changes to report so not sure how they could have droped one of them off this time, hopefully this new one will arrive tomorrow and clear things up a bit

Icequeen99

EllaNElsie wrote: »

No I wasnt aware I had to, oops!
On the last award notice both the kids were definatly on there and I ticked the bit about no changes to report so not sure how they could have droped one of them off this time, hopefully this new one will arrive tomorrow and clear things up a bit

Yes, definitely sort the income out with the SMP deduction. If your claim has been finalised you will need to lodge an appeal.

It sounds to me like what has happened is that HMRC thought from their computer scan that you wouldn't be entitled from April, but that when you have finalised your 11/12 you are.

Do you remember getting a letter in February telling you that your tax credits would stop unless you contacted them by 31st March? Sounds like you didn't contact them.

If that has happened, you will need to make a new claim as soon as possible.

Best get some advice from CAB, https://www.litrg.org.uk or https://www.taxaid.org.uk

IQ

EllaNElsie

I did let them know then yes, I have just been on entitled2 and it would seem we would only be £50 a month worse off if I gave up work and stayed home with the kids anyway which I always wanted to do but thought we couldnt afford it, so once the other half is home from work I am going to put that idea forward, maybe this whole thing is a blessing in disquise

Spamfree_2

EllaNElsie wrote: »

I did let them know then yes, I have just been on entitled2 and it would seem we would only be £50 a month worse off if I gave up work and stayed home with the kids anyway which I always wanted to do but thought we couldnt afford it, so once the other half is home from work I am going to put that idea forward, maybe this whole thing is a blessing in disquise

Would you get extra benefits to make the difference up if you just jacked in your job though?:eek:

EllaNElsie

According to entitled to we should be getting £102 a week tax credits as we are now, if I stoped working we would be entitled to £75 a week tax credits and £50 a week housing benefit, but im not convinced that the calculator is right.

I called the tax credit helpline again yesterday to make sure that they have both children on my claim and they do, they say I have filled out the form wrong and put we earn 40k between us a year which is absolute rubbish, the lady I spoke to the day before told me 26K which is about right before I take about 4,300 for SMP, he also informed me that we have been overpaid which the lady the day before failed to mention, so frustrating but still need to wait for my award notice so I can see it all in black and white:(