Tax credits headache

elj2287

I shall start from the beginning - might help me understand this a little better!!

I had a baby with my partner July 2012(our first). At that time we were told we weren't entitled to tax credits of any kind, which I accepted not really understanding the whole system having never claimed anything ever before. Our household income for the end of April 11/12 was £28075.

Our income at the end of tax year 12/13 will be £24452. I explained this again to the tax credits help line as some family members thought it would be worth ringing them and explaining the drop in income and addition of a baby to the family. The tax credits help line said I would be entitled on this income and should get a form sent in ASAP so they could backdate it. (As the form would have 11/12 income on it I was advised to phone to update with 12/13 income) I sent in the form and waited for 3 weeks, I then phoned them with 12/13 income as advised and told to phone back in a few days to get another update.

I have just come off the phone to find out again we are entitled to diddly squat at the moment and there will be no backdating. We will get a one off payment in May of £40. I don't understand why it begins in May and not now.

I begin work in April after 9 months of SMP and our annual income will be £23903. My son is due to go to nursery which will be a real struggle financially.
I just don't know what to do, I can't see how we are going to afford to live?! I don't know where to start cutting costs, if anyone can help with any advice - not too harsh, don't think I can take it today!:eek:

shedboy94

Based upon 11-12 and 12-13 inc there is no entitlement to WTC/CTC, however in the next year 13-14 you may qualify for some help if you incur nursery costs.

elj2287

Thanks for your reply - I just don't understand why they said we would be entitled to them now based on their calculation. Also the entitledto.co.uk calculator said we would be entitled to them too. So much confusion.

mel48rose

Don't forget Universal Benefit starts in April. Seems to be a minefield of confusion. Good luck I hope you get it sorted soon.

Horseunderwater

I begin work in April after 9 months of SMP and our annual income will be £23903. My son is due to go to nursery which will be a real struggle financially.
I just don't know what to do, I can't see how we are going to afford to live?! I don't know where to start cutting costs, if anyone can help with any advice - not too harsh, don't think I can take it today!:eek:
To OP
When you submitted the income details did you deduct £3900 off your gross income for the year 12/13 as you're entitled to £100/week from your SMP without it affecting your income for tax credit purposes. Or to put it another way - Your gross income would be your wages and only £35.45/week SMP for this tax year. And if you have pension payments deducted at work before tax - those need including too. See if that makes the difference.

elj2287

No I didn't, if I rang them again and explain I've had SMP, would this go in my favour? Thank you so much for your post horseunderwater!

sue1976

elj2287 wrote: »

No I didn't, if I rang them again and explain I've had SMP, would this go in my favour? Thank you so much for your post horseunderwater!

This would certainly go in your favour as your income would be £3900 less for tax purposes

Icequeen99

The SMP deduction will help, BUT the reason they said you weren't entitled is because the first £2,500 of the fall in income is disregarded. So if you said your income was £24,000 estimated for 12/13, they would treat that as £26,500.

IQ