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Income Tax and Tax Credits - Please Help

edited 30 November -1 at 12:00AM in Tax credits & benefits for work
1 reply 31.1K views
TheMothManTheMothMan Forumite
1 posts
edited 30 November -1 at 12:00AM in Tax credits & benefits for work
From June 2011 until October 2012 I unfortunately found myself in the position of being unemployed and claiming JSA.

I got my first pay last month with my new job and didnt have any PAYE Deduction (did have one for NI however). I believe this was due to my tax code of 810L meaning I have to earn over £8100 in tax year before paying PAYE. Is this correct?

Further to this, I made a claim for Working Tax Credits for the past year and recieved a payment from them today with a letter saying I'll be reciving a weekly payments up until 08/04/2013.

With me not paying any PAYE at the moment and if I'm right, I don't expect to until around April 2013, I feel as if there is something wrong here and don't want to get any issues down the line. I'm not paying any tax but yet reciving tax credits? Surely the tax man isn't this lenient? :think:

Can anyone please give some advice or let me know that this is normal?

Replies

  • CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
    89 posts
    Thank you for your e-mail

    The calculation for Working Tax Credits can be complicated and you are right to be concerned. We would initially refer you to our website www.adviceguide.org.uk and if you type into our search bar "working tax credits" you will get a useful fact sheet on eligibility and how the credits are calculated.

    It does recommend that you consult an experienced adviser in this and we would suggest contacting your local bureau or accessing our telephone advice line on 08444 77 10 10 could be helpful.

    Also on the fact sheet is the following helpline no which could be of help for issues rearding working tax credit


    The helpline number is 0345 300 3900 (textphone 0345 300 3909) and calls cost the same as a local telephone call.

    We would suggest that any contact you make at this stage that you keep a copy of all correspondence and dates and times of contact.

    Please contact us at your earliest convenience to discuss this issue further

    Kind regards

    Birmingham CAB
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
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