Can my income really increase by £25K without affecting tax credits

Morglin

Try checking it out with these people:

http://www.taxaid.org.uk/

Lin

Charliecat

Last year we earnt 11000, got £30 tax credits...this year earning 26000, getting 110 a week tax credits.
Ive just rang them. Its right.
Im putting it in a savings account.
They will want it back wont they?
When we needed it a lot last year it wasnt enough, now we dont its way over the odds.

mrsm

Thanks for the info everyone

I knew it would have to have some affect somewhere. Am a bit peeved that he wouldn't change it tho, means that now our income is even lower and we need TC more we'll be getting less because we will be paying back an overpayment , they just word it differently;)

zoezoe_3

mrsm wrote: »

Thanks for the info everyone

I knew it would have to have some affect somewhere. Am a bit peeved that he wouldn't change it tho, means that now our income is even lower and we need TC more we'll be getting less because we will be paying back an overpayment , they just word it differently;)

what overpayment ! read the examples again, the disregard means that there IS NO OVER PAYMENT, unless your earnings go up by over 25k.

furby-2003

i don't believe a word of it. Our income changed by about £4k from one near to the next this year and now we have to pay back our 6th overpayment.

Needless to say ive cancelled them all together now so i'm released from the system. I have to pay back £8-9k its not worth my bother!

furby-2003

p.s there is a clause in that £25k. I couldn't make out what they mean't but it mean we had to pay our back. It's so sneaky I didn't understand what they were talking about

mishkanorman

As i understood it, if you estimate an amount at the start of the year ie £10,000 and then rang them part way throught the year to say actually its nearer £11,000 then you cannot earn a penny over £11,000 without paying it back as an overpayment

BUT

if you left it as it was then the buffer (25k) comes into play and you dont pay it back but you need to notify them before the new credit award is issued.

Thats the excuse when i had an overpayment and suddenly they stopped my payments and after following the complaint route for months was told the above as it was tough ~!!

However they are now saying you have a month to notify them or get fined
so clearly its a case of left hand doesnt know the right hand exists !!


mishka

astonsmummy

i have always phoned them if my income changes, i thought thats what we had to do.

mrsm

zoezoe wrote: »

what overpayment ! read the examples again, the disregard means that there IS NO OVER PAYMENT, unless your earnings go up by over 25k.

Well not an overpayment as such but 2007-2008 will be lower wont it because my actual earnings for 2006-2007 were higher than the guestimate they used to calculate the award. So then 2007-2008 will be worked out on the higher 2006-2007 income bringing payments down, but our actual income for the year will be a lot less than previous years. So even if I then give a guestimate of anticipated earnings for 2207-2008 what we actually get will be lower than the entitlement for that period becuase we got too much in 2006-2007

phew:eek: does that make sense ?:rotfl:

zoezoe_3

mrsm wrote: »

Well not an overpayment as such but 2007-2008 will be lower wont it because my actual earnings for 2006-2007 were higher than the guestimate they used to calculate the award.:

they will be the same unless your income is 25k higher

mrsm wrote: »

So then 2007-2008 will be worked out on the higher 2006-2007 income bringing payments down, but our actual income for the year will be a lot less than previous years.

if you income is less than the current one they are using then ring them and they will adjust straight away.

Zoe