Tax Credit Disbelief

Slinker_2

I have just got my new tax credits award notice and i dont understand why im getting nothing....surely it cant be right. Heres a brief rundown :

1 qualifying child £2690.05
Basic £547.50
Total child tax credit elements £3237.55
Reduction due to income £3237.55
Amount for period £0.00

Im married work 47 hours a week get £23,500 gross per annum and my daughter is 13 months old being looked after by my wife who earns nothing.

Last year my wife was working and we got a small amount , but now we are earning 15,000 less and getting nothing?

I thought if you earned under £25,000 you were at least eligable for something....tried phoning them but waited in excess of 20 minutes.
Can anyone explain any more? im really bewildered...

princessdon

Have you given them this years figures? Are they using last years salary data?

Was there an overpayment from last year?

Slinker_2

Yes this estimate was based on this years figures...and the salary was stated as £23,500 . There was actually an underpayment last year which has been credited. Just seems so wrong how can i get less if we are earning less? i thought the whole idea of tax credits are to help out

skintandscared_2

Is that the tax credit where both adults need to be working to claim it? I think if you have a child, one parent only needs to work 16 hours per week. If it is that one, your partner's loss of hours may have something to do with it. If it isn't that tax credit you're talking about then ignore me

Icequeen99

Slinker wrote: »

Yes this estimate was based on this years figures...and the salary was stated as £23,500 . There was actually an underpayment last year which has been credited. Just seems so wrong how can i get less if we are earning less? i thought the whole idea of tax credits are to help out

The system has changed, so the cut off points have changed. The cut-off for a family with one child is around £26,000 in 12-13.

However, another change introduced was a disregard for falls in income which means the first £2,500 fall in your income from last year is not counted.

If you have estimated 23,500, tax credits will use income of 26,000 and so you won't get anything.

You might get a small amount next year when they use the 23,500 (if that estimate turns out to be right).

IQ

princessdon

You should be getting TC as annual income is under 26K - I can't see from what you have posted why they are not awarding this

What does the income on the award say? They are known to make errors - have you checked the household income on the award statement.

Does the letter give any indication?

princessdon

or what ice Queen has said - I didn't think they added the disregard if actual figures were given.

Icequeen99

princessdon wrote: »

You should be getting TC as annual income is under 26K - I can't see from what you have posted why they are not awarding this

What does the income on the award say? They are known to make errors - have you checked the household income on the award statement.

Does the letter give any indication?

But they don't have annual income under 26,000, for tax credit purposes it is income of 23,500 + 2,500 disregard.

IQ

Icequeen99

princessdon wrote: »

or what ice Queen has said - I didn't think they added the disregard if actual figures were given.

The disregard applies to all figures - estimated and actual in the year that income falls.

So in this case 26,000 will be used as the estimate, and then if their actual turns out to be 23,500 the final award for 12/13 will be done again on 26,000. 13/14 will be based on 23,500 initially.

IQ

Slinker_2

Now that would explain things. Thankyou for your time and answers ...its so annoying that im just over that limit. Maybe ill ask my boss for a paycut ! I will still try and phone them to see what they say if i can ever get through *sigh*