Tax credits mistake, how to fix it?

BatCat

Hi Folks,
Appreciate any help you can give me on this one.
I applied for tax credits in November last year as my husband's earnings had dropped to ridiculously low levels, filled in all the forms, earnings from last year were 32500 for both of us, 2 kids under 5. Kids in childcare 3-4 days a week. The sticky bit is that I was getting childcare vouchers and haven't subtracted that off the amount for childcare costs because I didn't see anything relating to it in the guidance notes.
April 2012 came and I didn't renew as husband found a job and we had no idea how much he had actually earned in 2011-2012 due to JSA, training program and ex employer being a pain so missing payslips, sigh.
Letter turns up saying we owe them 1000£. :eek:
So call them and they say we need to send them our income etc for 2010-2011, 2011-2012. Get the information and again miss the stuff about the childcare vouchers, sigh. I put them at 175 a week.
So, having examined the spreadsheet into which I put all the childcare costs and subtracting the salary sacrifice childcare vouchers I reckon I was 100£ over and should have said 75£ a week.
By looking at the 2012-2013 calculator I see reducing the childcare down to 75£ a week with an income of 32500 gives us 1000£ or so. Which is fine. But now I'm worried about 2011-2012 because for some reason they have just retrospectively paid me 2000£ for last year.
Is there anyway I can find out how much in tax credits I would have been entitled to last year on 32500 joint income with 75£ a week childcare and 2 kids under 18?
This is a genuine mistake, I saw 'Child Tax Credit' and thought it was towards the children, I didn't note that it was for only childcare.

princessdon

You remove your salary sacrifice from gross. The figure on your P60 includes this anyway, so use your p60 figure.

BatCat

Hi Princess,
I have used my P60 figure.
The mistake I think I made is that I have a salary sacrifice for childcare vouchers at 243 a month and I should have been subtracting the 243 a month from my childcare amount?

zagfles

BatCat wrote: »

Hi Folks,
Appreciate any help you can give me on this one.
I applied for tax credits in November last year as my husband's earnings had dropped to ridiculously low levels, filled in all the forms, earnings from last year were 32500 for both of us, 2 kids under 5. Kids in childcare 3-4 days a week. The sticky bit is that I was getting childcare vouchers and haven't subtracted that off the amount for childcare costs because I didn't see anything relating to it in the guidance notes.
April 2012 came and I didn't renew as husband found a job and we had no idea how much he had actually earned in 2011-2012 due to JSA, training program and ex employer being a pain so missing payslips, sigh.
Letter turns up saying we owe them 1000£. :eek:
So call them and they say we need to send them our income etc for 2010-2011, 2011-2012. Get the information and again miss the stuff about the childcare vouchers, sigh. I put them at 175 a week.
So, having examined the spreadsheet into which I put all the childcare costs and subtracting the salary sacrifice childcare vouchers I reckon I was 100£ over and should have said 75£ a week.
By looking at the 2012-2013 calculator I see reducing the childcare down to 75£ a week with an income of 32500 gives us 1000£ or so. Which is fine.

I make it £2622. Assuming you work 30+ hours between you. If you're using the HMRC calculator is gives you the amount from now till the end of the tax year, ie half a year's worth. Try the turn2us calculator.

But now I'm worried about 2011-2012 because for some reason they have just retrospectively paid me 2000£ for last year.
Is there anyway I can find out how much in tax credits I would have been entitled to last year on 32500 joint income with 75£ a week childcare and 2 kids under 18?

I make it £2352 last year.

This is a genuine mistake, I saw 'Child Tax Credit' and thought it was towards the children, I didn't note that it was for only childcare.

It's the way the calculation is done. You don't actually get the WTC childcare element but it affects your CTC, as it takes a lot of the taper.

zagfles

BatCat wrote: »

Hi Princess,
I have used my P60 figure.
The mistake I think I made is that I have a salary sacrifice for childcare vouchers at 243 a month and I should have been subtracting the 243 a month from my childcare amount?

Yes........

emsywoo123

When I called them earlier this week to amend my childcare costs, I was asked as part of the change of circs process very clearly if all my childcare fees were paid by me, and I had to confirm I did not receive any salary sacrifice and/or vouchers.

Presumably to avoid this situation..........

Icequeen99

emsywoo123 wrote: »

When I called them earlier this week to amend my childcare costs, I was asked as part of the change of circs process very clearly if all my childcare fees were paid by me, and I had to confirm I did not receive any salary sacrifice and/or vouchers.

Presumably to avoid this situation..........

Yes and I believe it is in the notes for the claim form.

Best to contact HMRC and get it correct asap.

IQ

BatCat

Thanks Zagflies, i hadn't realised it was only for what remained of the year. Yes, i work 40 hours a week.
Why is it more this year than last? Grateful for the numbers though. That covers what we can just about afford to pay back.
I've never seen it in the notes & have never spoken to them because I could never get through on the phone. Called this morning but their systems are down until Monday, they then expect to be busy all next week. I took an address and will write to them.

Icequeen99

BatCat wrote: »

Thanks Zagflies, i hadn't realised it was only for what remained of the year. Yes, i work 40 hours a week.
Why is it more this year than last? Grateful for the numbers though. That covers what we can just about afford to pay back.
I've never seen it in the notes & have never spoken to them because I could never get through on the phone. Called this morning but their systems are down until Monday, they then expect to be busy all next week. I took an address and will write to them.

Only to help anyone else who is claiming, the notes are here http://www.hmrc.gov.uk/forms/tc600-notes.pdf

Pg 6 mentions that you need to deduct the vouchers.

IQ

BatCat

Thanks IQ, I did not have the April 2012 notes. Mine were much older. It is clearer now.

Icequeen99

BatCat wrote: »

Thanks IQ, I did not have the April 2012 notes. Mine were much older. It is clearer now.

If the notes you received with your claim form did not have it in, there you could dispute that part of the overpayment (similarly if the first renewal notes did not have it in).

You can find all of the past notes here: http://www.revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/forms-notices-and-checklists-/archived-forms-notices-and-checklists/

But quickly looking it certain is there back to 2009. I haven't looked at ones before that.

IQ