tax credits again !! what do i do !!

kurjam

i just rang tax credits as my income last year was £13000 (approx), due to promotion income this year is £17350 but they have put it on our account as an estimate for this year, but they are still going to base tax credits on the £13000.....
i said thats going to give me a huge overpayment at the end of next year, he said it won`t, but surely it will...
anybody got any ideas...??
should i write in to them and ask for a reply, then if i do get a big overpayment i can say i have it in writing that i will not (would that cover me if i dispute an overpayment)...
this system is so wrong !! i should not have to put the money into a seperate bank account and i need the money as i have had to increase my childcare costs !!

is their anyway of getting this years payments based on this years income of £17350 ??

busiscoming2

Don't know how to go about getting them to use the new figure. I think they have been overpaying me for the last year - I had one child less (gone to uni) but the amount had gone up, so each time it came into my bank account I saved (in online saver) half of it. If they ask for it back or give me nothing this year I have it to use.

DazzerG

There are already several posts about the £25,000 disregard.

Basically they will use last years figure, if the income increase is less than £25,000.....which yours is.

http://forums.moneysavingexpert.com/showthread.html?p=5051210#post5051210

Maybe somebody should make a sticky about the £25,000 disregard?


ps. If you really want them to base it on £17350, then you need to tell them that you are now earning £42350!

Louise1521

I've recently finished work after being made redundant. When I phoned the tax credits they immediately changed my income to 0.

kurjam

i know about the disreagrd, but next year my tax credits will surely be a lot lower to compensate for any overpayment this year !!

the man was quite rude anyway as i altered my childcare costs at the same time and he said thats gone up alot your nursery have increased their fees to much !!
what has it got to do with him, i told him my children go to nursery more now due to commitments, at least it made him shut up !!
he should not comment on my situation or what my childcare provider charges etc ....he made me so angry :mad:

DazzerG

kurjam wrote: »

i know about the disreagrd, but next year my tax credits will surely be a lot lower to compensate for any overpayment this year !!

but there wont be any overpayment???

DazzerG

Louise1521 wrote: »

I've recently finished work after being made redundant. When I phoned the tax credits they immediately changed my income to 0.

Are you likely to be going back to work at all this Tax year?
If so then you need to call them back and provide a more realistic estimate of your likely income other than £0.

kurjam

dazzer g - thanks for your help, but they took an estimate of earnings for this year and put it on the computer, so why next year when i renew my award and tell them that my income as gone up will i not have to pay any overpayment ??
will they reduce my new payments to compensate for any money they have overpayed...
this is such a confusing system...

jasper12

kurjam wrote: »

dazzer g - thanks for your help, but they took an estimate of earnings for this year and put it on the computer, so why next year when i renew my award and tell them that my income as gone up will i not have to pay any overpayment ??
will they reduce my new payments to compensate for any money they have overpayed...
this is such a confusing system...

There won't be an overpayment in this tax year because of the 25k disregard.

Your payments will drop next april due to the award being then based on your new higher income.

kurjam

apparently not because this years tax credit is base don last years income

Elle00

The £25kpa disregard mentioned has nothing to do with your situation. I suspect the misunderstanding is that you get the same credits if your income is under that amount but this is incorrect. If your income doesn't change by or exceed £25kpa then you will not be reassessed for your projected earnings which is the problem you are having.

The thing that would concern me about your situation is going over the £16kpa (thereabouts) minimum liveable income threshold if you are on your own and receiving working and childcare elements. You are right in saying you really will suffer if any of those circumstances apply as next year as you will find yourself much worse off until you reach around £20kpa thanks to the stupid way the system works. It's like reaching the higher tax threshold but for poor people. If you can get your claim reassessed based on projected earnings then do keep pushing. Go to your local MP if you have to and demand some action!

But if all else fails then open up a savings account and stick to a good budget. If you allow yourself to become accustomed to the higher income you'll experience this year then you'll suffer for it next year which is why you're naturally worried. But if you syphon off the excess as much as possible, you'll consistently remain living within your means over the two year period as you'll be able to suppliment next year's income with your savings.

If you want to know what you should actually be getting for the year then put the details into the entitledto site and see how much you're being over paid by. It'll mostly depend on whether you're a lone parent, whether you will no longer be eligible for the working element and what your childcare costs are.

Hope that helps and best of luck to you, Elle x.