Tax Credit Award of £0.00 based on 2011/12

bernie_m

Hi all

Sorry but I could not find any thread pertaining to my particular set of circumstances.

I was made redundent in November 2011 and I recently applied for tax credits. I have just recieved our award and it is £0.00.

This would be understandable for earnings in tax year 2011 /12 as my salary up to Nov 2011 took us over the threshold. However our joint "actual" annual income since then is £10,200.00 from my wife working 21 hours a week.

We also have a 18 year daughter who starts university next month.

I do not claim any benefits as I am starting a business and we do have some savings that would no doubt invalidate any benefits claim. But these are what we are living off at the moment.

I enclosed a letter explaining our current circumstances and enclosed it with the application but they obviously did not take my current circumstances into account.

Are the rules that hard and fast that they do not take current circumstances into account or could I appeal and if so to whom?

Icequeen99

Normally they don't pick up details in attached letters. The system automatically bases the award on previous year income (11/12) which is what you would have been asked for on the form.

Now you have your award notice, you can ring up and give your new estimate for 12/13 and your award will be recalculated.

Two things you should know though. The first 2,500 of the fall in income from 11/12 to 12/13 will be ignored. So if you think your income this year will be 10,200 HMRC will use 12,700.

Secondly, if you get a job later in the year, what you receive now may be overpaid because tax credits work by spreading income across the whole year so you need to be careful not to overestimate the fall in income.

IQ

Smi1er

OP, I'm in the same boat. Made an application with cover letter. Award of SFA.

Called them (which isn't the easiest thing to do) and I was told that two days after my initial award (of SFA) they reacessed and I was told of my new award over the phone.

I suspect it's all done with computer so give them a call and discuss it with a real person. I called them about 4pm and was on hold for about 20 mins