Underpaid Tax Credits

barnesyboy

So

i have just received my provisional tax credits for the coming tax year and have noticed that last years estimates are miles off the mark.

They obviously base each years estimate to the previous years earnings. So they estimated my income £6750 and my partners as £15303, total £22,053.

The thing is our first child was born in March 2012. My partner was on maternity until September and I was unemployed all of last year. So when calculating all of last years earnings the figure is £8650.41

Now this is a massive mis-estimation with a difference of £13,402.59

Do HMRC rebate underpaid Tax Credits and if so could anyone estimate the figure it would be.

Many thanks.

Elzmumof3

they will look at it when you do your renewal, and thats when you give them the correct figures for last year.

barnesyboy

Thank you. But do you know if they rebate underpaid Tax Credits?

Horseunderwater

What was your gross income and your partners for the year in total? Was it the £8.8k odd figure you mentioned? If so your income is infact even lower than that. You need to work out from when she went on Maternity leave to end of last tax year how many weeks that was and then take that amount of weeks off 39 and when you have that figure you also need to tell TC's that too as she is entitled to deduct £100 /week off her income from 6 th April 2012 onwards to when her leave ended. So probably in the region of 33/34 weeks at a guess. Which would be £3400 off her income as a ball park figure.
Work that out and ring them up with correct income estimate and they will make an adjustment for last years award and will possibly make an interim payment based on that estimate. Did you tell them you had a child at all? If this is your first then you have missed out on an awful lot of tax credits. You will still get it as this year is not yet closed, but you need to get it done as soon as you can. Then when you get your renewal pack they will pay any balance of any underpayment due to you. This years award will be loads higher than last year, so if you now have a job or if your partner is the main earner and you are staying home for the moment to look after the little one, then you need to adjust the award with a revised estimate after you get the final award for this year.

davehughes182

In a nutshell, if you have been underpaid for previous year, then yes you will be paid what is owed.

barnesyboy

Horseunderwater wrote: »

What was your gross income and your partners for the year in total? Was it the £8.8k odd figure you mentioned? If so your income is infact even lower than that. You need to work out from when she went on Maternity leave to end of last tax year how many weeks that was and then take that amount of weeks off 39 and when you have that figure you also need to tell TC's that too as she is entitled to deduct £100 /week off her income from 6 th April 2012 onwards to when her leave ended. So probably in the region of 33/34 weeks at a guess. Which would be £3400 off her income as a ball park figure.
Work that out and ring them up with correct income estimate and they will make an adjustment for last years award and will possibly make an interim payment based on that estimate. Did you tell them you had a child at all? If this is your first then you have missed out on an awful lot of tax credits. You will still get it as this year is not yet closed, but you need to get it done as soon as you can. Then when you get your renewal pack they will pay any balance of any underpayment due to you. This years award will be loads higher than last year, so if you now have a job or if your partner is the main earner and you are staying home for the moment to look after the little one, then you need to adjust the award with a revised estimate after you get the final award for this year.

Yes the 8k figure is the total amount. She was on maternity from the beginning of March until the end of august. They have had the info from the start about my daughter.

I am still unemployed and my partner since September has been back 24 hours p/w.

They have been informed that last years figures are incorrect by a mile, but I have been told to stay put until we receive the renewal pack.

My query on the rebate is because I know you have to pay overpaid amounts back. I just wasn't sure of the case when the shoe is on the other foot.

Horseunderwater

If you have already told them the revised income figures by phone then you will get a revised estimate stating that shortly and it will show the potential underpayment on there. They should also pay some of it now. They did with me. Mind you nowhere near as big an amount as you would be due.

barnesyboy

Horseunderwater wrote: »

If you have already told them the revised income figures by phone then you will get a revised estimate stating that shortly and it will show the potential underpayment on there. They should also pay some of it now. They did with me. Mind you nowhere near as big an amount as you would be due.

The revised figures came through with the provisional estimates for this year. Funnily enough, they seem to think they have overpaid us and are going to take £464 from this years award.

Already our weekly payments trebled this week.

Anyone have an idea on the rebate figure?

caz246

We received nearly £3000 in a lump sum after renewal last year as I had been on maternity and as the previous year had been my 1st tax credit claim I was unaware you could give them an estimate for the current year, I was always under the impression it was just based on earnings the previous year (was all new to me). So good luck you could be in for a lump sum

caz246

barnesyboy wrote: »

The revised figures came through with the provisional estimates for this year. Funnily enough, they seem to think they have overpaid us and are going to take £464 from this years award.

Already our weekly payments trebled this week.

Anyone have an idea on the rebate figure?

Did that paperwork not show a potential payment amount?

zagfles

Underpayment from last year would be about £4470 based on the above. Also you can deduct £100pw maternity pay so it could be more if you haven't done that in your figures above.

Assuming you've not been getting elements you're not now entitled to, eg the WTC 30h element (if your partner was working 30h+ before maternity leave you should be OK on this).