tax credits change in circumstances help!!

xxemmaxx_2

Hi there

I am so clueless when it comes to tax credits etc... for the past 4 years i have been a single parent to my little boy... and any changes ive had to make has been down to only changing a job or childcare provider...

I moved in with my partner at the start of december and notified them straight away, i had to give an estimate over the phone and to be honest thats all it was as i wasnt too sure on my partners income, hes self employed and work very scarce... I am also self employed as from may this year so was very hard to go by any accurate figures...

what i dont understand is when i got the estimated rewards notice it is saying they have overpaid me so much... but sent me a claims pack.. i take it this is to make it official and a new claim...

when filling it out it asks for the income of april 2011-2012 which i was employed not self employed... it also asks that of my partner... but why would they ask or take his income into consideration for this whole period when i didnt even know him in april 2011. i know we work a year behind but i dont see how his income should be taken into consideration for my child??

could someone make things clearer for me in laymans terms... i really am clueless!!

ps... i also notified them that my child wasnt in childcare from starting primary school back in september, even done it in writing but yet with the professional tax awards notice update it shows still payment for childcare even though i updated them... this would be their mistake and im now worried theyre going to say they overpaid for that too!!

any help really appreciated! x

UsetheFORCE

xxemmaxx wrote: »

Hi there

I am so clueless when it comes to tax credits etc... for the past 4 years i have been a single parent to my little boy... and any changes ive had to make has been down to only changing a job or childcare provider...

I moved in with my partner at the start of december and notified them straight away, i had to give an estimate over the phone and to be honest thats all it was as i wasnt too sure on my partners income, hes self employed and work very scarce... I am also self employed as from may this year so was very hard to go by any accurate figures...

what i dont understand is when i got the estimated rewards notice it is saying they have overpaid me so much... but sent me a claims pack.. i take it this is to make it official and a new claim...

when filling it out it asks for the income of april 2011-2012 which i was employed not self employed... it also asks that of my partner... but why would they ask or take his income into consideration for this whole period when i didnt even know him in april 2011. i know we work a year behind but i dont see how his income should be taken into consideration for my child??

could someone make things clearer for me in laymans terms... i really am clueless!!

ps... i also notified them that my child wasnt in childcare from starting primary school back in september, even done it in writing but yet with the professional tax awards notice update it shows still payment for childcare even though i updated them... this would be their mistake and im now worried theyre going to say they overpaid for that too!!

any help really appreciated! x

They are making a new assessment based on your joint earnings, the starting point of which is the earnings for both of you in the tax year 2011/2012.

Once an assessment has been made, ring up and tell them your CURRENT situation and they will amend your claim accordingly.

Your son is now your partners financial responsibility.

Were they still paying you childcare in your tax credit payments??? If you told them and they didn't alter it then you may have a case BUT you clearly knew you were not entitled to it so I am not sure what the outcome will be.

xxemmaxx_2

ok thank you... so when i tell them our new circumstances they will work it out from december 2012 to april 2013?? as i dont understand why they need to take his income into consideration when i wasnt even living with him until a month ago, so there was no financial support there... i understand they look into that for working tax etc... but with the child credits why would they need to use his income details? really going over my head... especially working a year behind!

dundeediva

Think of it this way- you have 2 claims. 1 had ended, which is your single claim. This has nothing to with your joint claim.

Your new joint claim, as with all ctc and wtc claims, asks for last years income. This is what the claim will be based on at first, you can then call them up and provide an estimated income for this year if you wish once your new claim is calculated. I may be wrong but it seems that you are thinking the 2 are linked. His income is NOT taken into account for your single claim only the new joint one

xxemmaxx_2

thanks.... no im looking at the two seperate but i dont understand why they would need his income for even this year when he will only be living with me dec to april... its going to be very hard to work out income as it will be maternity allowance mixed in with self employment for 2013/2014 ... i think ive just confused myself even more lol...

ok so they take 2011/2012 to base the claim on... i then phone up and tell them this years 2012/2013?? even though he wasnt living with me april 2012-dec2012??? therefore they will think ive had a bigger house income than i actually have regardless if its based on 2011/2012 or this years? x

iluvmarmite

If its the usual form they send out then they are all pre printed with the same information, they can't change the questions on it, so asking for your partners income from last year is on the form for everyone who has a partner.

You could try putting a letter in with the form stating your concerns and give them the info you have given here in the letter.

Caz3121

Maybe best to think of tax credits as monthly payment.
Your single claim was for 8 months so you will have had 8 monthly payments based on your single income
you still will be due 4 monthly payments to come based on the joint claim
to calculate this out they will use last years income for you both combined and if this would then entitle you to £600 for a full year, you would receive £50 per month for the next 4 months

You cannot have a joint claim only based on your single income

Given that you are self employed and your income varies, you need to be careful for your estimate that you give them for your combined income for this year for the joint claim. When they base it off last years, the current years can increase by £10k with no overpayment. If they work off this years estimate there is no allowance for this, and if you tell them the combined income for this year is £15k and it works out to be £18k at the end of the tax year then there will be an overpayment

xxemmaxx_2

Thanks evryone..

makes better sense to me now working it out monthly...

and great idea of including a letter i will do so..

thanks againx