tax credits help

wideboy1

im currently claiming tax credits and my reward as gone down alot i rung them up today to ask why and they've told me im suppose to give an estimate during the year is this true as ive never at to do this i was never told to do this and now my claim as gone down because ive not been giving estimates all ive done every year fir the last 5 to 6 years is ring up every year and gave mine and partners earnings but not once was i told to ring to give estimates as anyone else had this happen to them thanks for your time

System

I think they're talking rubbish. You only have to give them an estimate if during the year your circumstances have changed and your income has increased or decreased significantly i.e above or below the thresholds they specified in your last award notice.

But say for example your 06/07 award was based on a household income of £20000 (from 05/06) but at the end of the year your actual income was £27000. Then your income increase of £7000 was less than the £25000 disregard so there would be no overpayment for that year. However TCO would then use £27000 as an estimate for your 07/08 award and this would obviously reduce your entitlement and your payments would decrease.

wideboy1

in the 06/05 i told them our earnings were 16,000 now we have both just got our p60's and its now 20,000 but this is due to a bit of overtime which i get every now and again. not all the time, but the thing is they have over paied us for the last 3 years 1 year i now aboutbut the others i dont, all i can see is the debt keeps going up and up and they always use the same thing to us.

also i have to pay 25% to pay back the debt which means i dont have the money to pay 1 of my sons childcare now and my other son i have to find the money for so he can go nursery now cause of this.

System

If you are in difficulties because of the amount they are reclaiming from your current award ask them if they will renegotiate the amount they are recovering. They will ask for full details of our income and outgoings though.