Tax credits underpayment

xoAmyox

Hi,

I'd be grateful for some help - currently on hold trying to call the tax credits people.

I've just received a provisional award for last year. And it appears they have 'overpaid' me. However, I don't believe this is true.

They have taken away my working tax credit and the tax credit towards childcare from the end of January to the beginning of April.

Supposedly (as I was told in May - this is the first time the wrote to me about the change or asked for any additional information), this was because I didn't inform them that I'd changed employer at that time.

I had changed employer, and not told them as my wage stayed the same. However, as soon as they wrote to me to say they thought I'd stopped working, I rang and updated them.

Why are they now ignoring that and saying I was overpaid? I checked the website and it's not a change you must inform them of *confused*

shedboy94

xoAmyox wrote: »

Hi,

I'd be grateful for some help - currently on hold trying to call the tax credits people.

I've just received a provisional award for last year. And it appears they have 'overpaid' me. However, I don't believe this is true.

They have taken away my working tax credit and the tax credit towards childcare from the end of January to the beginning of April.

Supposedly (as I was told in May - this is the first time the wrote to me about the change or asked for any additional information), this was because I didn't inform them that I'd changed employer at that time.

I had changed employer, and not told them as my wage stayed the same. However, as soon as they wrote to me to say they thought I'd stopped working, I rang and updated them.

Why are they now ignoring that and saying I was overpaid? I checked the website and it's not a change you must inform them of *confused*

It actually is a change you need to inform them of -

http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/how-when-report.htm#4

Changing jobs

If you or your partner change jobs, tell the Tax Credit Office.
If the old job has finished, you can report the new job before it starts - but no more than seven days before.
If the gap between the jobs will be:

• four weeks or more, you must report the new job within one month of it starting
• less than four weeks, it's best to report the new job within a month - if the change increases your payments, the higher amount can only be backdated by up to one month

But if there is a gap of six days or less between the jobs, don’t report the new job until it actually starts. Get in touch as soon as you can after the new job starts. It's best to do this within a month. This is because if the change increases your payments, the higher amount can only be backdated by up to one month.
Tell the Tax Credit Office your new employer's full pay office address and PAYE tax reference when you get in touch. Their PAYE reference should be on your latest payslip, or ask your employer if you're not sure.

xoAmyox

shedboy94 wrote: »

It actually is a change you need to inform them of -

http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/how-when-report.htm#4

Changing jobs

If you or your partner change jobs, tell the Tax Credit Office.
If the old job has finished, you can report the new job before it starts - but no more than seven days before.

If the gap between the jobs will be:

• four weeks or more, you must report the new job within one month of it starting
• less than four weeks, it's best to report the new job within a month - if the change increases your payments, the higher amount can only be backdated by up to one month

But if there is a gap of six days or less between the jobs, don’t report the new job until it actually starts. Get in touch as soon as you can after the new job starts. It's best to do this within a month. This is because if the change increases your payments, the higher amount can only be backdated by up to one month.
Tell the Tax Credit Office your new employer's full pay office address and PAYE tax reference when you get in touch. Their PAYE reference should be on your latest payslip, or ask your employer if you're not sure.

This is the part that applies:

- less than four weeks, it's best to report the new job within a month - if the change increases your payments, the higher amount can only be backdated by up to one month

My payments should not have increased, but also should not have decreased, and theres the magic phrase 'it's best to report'

Ok, I didn't know at the time, but that doesn't say I should have my tax credits cut either.

System

Changes of circumstance can only be backdated 1 month and so if the gap between them being informed and the actual change is more than 1 month you lose out.
They end the old employment at the date you left them and backdate the start date of the new employment 1 month from the time they learn about the new employment. That affects entitlement to the childcare element of WTC too for that period and that's what creates the overpayment.
If they asked for your employers details on the original application form then that should indicate that information is important to them and so any change needs to be reported to them. Live employer details confirm the claimants right to WTC.