tax credits - forgot to tell of change in earnings

badgers

Please don't shout at me for being scared! :eek:
At the start of last year (when the tax credit renewal forms came), our joint income was about 13K, as I was a mature student with a small (and disregarded) bursary. So our working tax credits continued.

About a month after that I got a ‘professional’ job as a result of having retrained, which was great.

But I didn’t tell HMRC… laziness, forgetfulness, scariness, headinthesandinesss etc, I also assumed that because people are paid on the result of the previous year’s earnings (and because my previous year was low income) then that was the main thing, not that my income had suddenly gone up.

So now I am unsure what to do. Obviously I will tell the truth about our previous 11 months combined income (ie it is relatively high now ~ 44K), but can I just fill in the form “tax credits annual declaration” with our new income details for the previous tax year (ie 11 months of higher earnings) and be done with it…. Or do I need to phone them and admit I have i didn't not tell them straight away as I should have done (??) and risk a big fine/more scary stuff.

The thing is the wording is not crystal clear to me. The Annual review form says to check our details were correct for the previous year in part A and B. Well part A says that “at the start of the award period april 2012: your details were….
But that IS true, at the START of the award period those details are/were correct. I know that sounds like a lawyer, but its technically true.

Anyway, the main point I want clarity on is this… should I fill in the new income details and send of the form, or should I phone them and explain. (I am quite scared about this).

Cheers

georgiasdragons

Dont be scared i would ring, they will stop the money and therefore you wont be accumilating any more overpayments.
Better to get it over and done with. The longer you leave it will end up owing more, ive heard you can pay it back over 2 years or longer if causes hardship/

It wont be as bad as you think.

badgers

I'm just going to send off the form. I can't take speaking to them again (did so 3 years ago and it was confusing). I suffer from depression so this anxiety is too much to bare.
Thanks for the input, sorry I can't take the advice

shop-to-drop

badgers wrote: »

I'm just going to send off the form. I can't take speaking to them again (did so 3 years ago and it was confusing). I suffer from depression so this anxiety is too much to bare.
Thanks for the input, sorry I can't take the advice

Just don't spend the money so it can be repaid easily. That way you can pay the overpayment by internet banking and not have to speak/negotiate with anyone over the phone if this causes you anxiety. Don't worry you'll be fine.

paulineb_2

They do assess tax credits on the basis of the previous tax year, so if you had low earnings the year before last you would still qualify as far as I know for tax credits last year. I just claimed for tax credits at the beginning of Feb 2013 and they wanted to know what my earnings were for the tax year ending April 12.

The tax credits people have always been very nice on the phone when Ive spoken to them and I agree, if you are suffering from anxiety you might not want to phone them but I would. If you no longer need them, stop claiming now and then they'll work out if you have been overpaid and if you need to pay anything back.

Just phone them and let them know your financial circumstances have changed, that you want to stop claiming and if theres been an overpayment to you, you'll repay it.

Tax credits can be hard for some people because sometimes people end up earning more, or less than they think they are going to, but its always better to let people know about a change of financial circumstances as soon as you can, saves any stress later

Bollotom

When you work out the final total, don't forget to deduct £300.
As others have said, I'd phone them. They're a different setup than three years ago.

laineybird2000

badgers wrote: »

I'm just going to send off the form. I can't take speaking to them again (did so 3 years ago and it was confusing). I suffer from depression so this anxiety is too much to bare.
Thanks for the input, sorry I can't take the advice

Suffers from depression but manages to re-train , undergo interview and attend gainful employment for just shy of a year. Well done

mum2one

Please phone them, - you can tell them your suffer with depression, I get nervous on the phone and end up apologiising about 1001 times even if I haven't said anything,

In theory its based on last yrs income, so your acting now i guess on the form, - its better for you to be the one to tell them, there be more understanding, and you can also ask for a letter confirming what the arrangements are re payback. xx

FBaby

I do believe is that you haven't done anything officially wrong, but by choosing not to report a change of circumstances, you will occur an overpayment for the end of the year.

So if you are worried about being in trouble, I think you are fine. If you are worried about having a large sum to repay, then I think you might indeed find this to be the case, but someone with expertise in tax credits will be able to advise you properly.

zagfles

You don't have to tell them about income increases, so you won't be fined. You've broken no rules. Worst that'll happen is you'll have to repay all the WTC you received, which if you earned £44k and were only claiming WTC (not CTC) will be the case.

Tax credits are initially based on previous year's earning, there's a disregard for income increases which last year was £10k, so earning £44k you'll be treated as if you earned £34k, which is way over the limit for WTC.

badgers

Yes, think I will either phone or write to them and give full details... don't want to, but then don't want to be accused of cheating either. Will get back to say what was the outcome so it may assist others.