child tax credit cut

Dan-Dan

Hi

Just in general terms , if our tax credits award for 2013/2014 came down £60 a month , based on 1 salary of £27500 and a stay at home mum of 2 kids under 16 , and the circumstances for 2012/2013 were almost identical , is this just a result of general benefit cuts ? or is it likely to be incorrect

Just checking :-)

SkyeKnight

The award for last year (12/13) would have been based on the previous year's (11/12) salary - unless you had a very large change in income.

The award for this year (13/14) is based on last year's household income.

If your household income was lower for 2011/12 than last year then you would have received a larger amount of tax credits last year.

I don't think there has been any reduction in tax credits this year. So, the answer is: it may or may not be a mistake, it depends what your income was in 2011/12.

Dan-Dan

Thank you for this info , thats a bit of a worry because the year before we both worked , 2012/2013 only i did

Icequeen99

Dan-Dan wrote: »

Thank you for this info , thats a bit of a worry because the year before we both worked , 2012/2013 only i did

So you had a fall in income from 11/12 to 12/13? If anything I would expect your award to go up if your income remained lower because the 2,500 disregard for falls in income would be taken out.

Is it possible they are recovering an overpayment? Or is the annual amount different.

If you can find your 12/13 final award notice and post the total and your new 13/14 total award for the year from the front page I can do some calculations for you. Will also need your 11/12, 12/13 and 13/14 joint income figures.

Is one of the children coming up to 16?

IQ

Dan-Dan

Hi Ice queen , all this info is at home , i will dig it out later when i finish work , and thanks in advance!

Dan-Dan

Icequeen99 wrote: »

So you had a fall in income from 11/12 to 12/13? If anything I would expect your award to go up if your income remained lower because the 2,500 disregard for falls in income would be taken out.

Is it possible they are recovering an overpayment? Or is the annual amount different.

If you can find your 12/13 final award notice and post the total and your new 13/14 total award for the year from the front page I can do some calculations for you. Will also need your 11/12, 12/13 and 13/14 joint income figures.

Is one of the children coming up to 16?

IQ

Hi

Sorry for delay!

12/13 award notice says - child tax credit - £3495.51 , two claimaints - 1 working 38 hours - no childcare , 2 children well under 16 JOINT INCOME - £24986

06/04/13 - 05/04/14 AWARD - £2078.11 MINUS PAYMENTS ALREADY MADE - £620.41

AMOUNT DUE - £1457.70
MONTLY PAYMENTS OF £148.11 THEN EVERY 4 WEEKS £145.51

ESTIMATED @ £135.21 PER WEEK FROM APRIL 2014

Joint income april 2010-april 2011 - £29200
Joint income april 2011 - april 2012 - £24986
Joint income april 2012 - april 2013 - £27400

All and any advice appreciated!

Icequeen99

Dan-Dan wrote: »

Hi

Sorry for delay!

12/13 award notice says - child tax credit - £3495.51 , two claimaints - 1 working 38 hours - no childcare , 2 children well under 16 JOINT INCOME - £24986

06/04/13 - 05/04/14 AWARD - £2078.11 MINUS PAYMENTS ALREADY MADE - £620.41

AMOUNT DUE - £1457.70
MONTLY PAYMENTS OF £148.11 THEN EVERY 4 WEEKS £145.51

ESTIMATED @ £135.21 PER WEEK FROM APRIL 2014

Joint income april 2010-april 2011 - £29200
Joint income april 2011 - april 2012 - £24986
Joint income april 2012 - april 2013 - £27400

All and any advice appreciated!

The 13/14 calculation of 2078 is correct. The 12/13 calculation doesn't look right to me, i only work out entitlement as just under £3000. Are you sure the income was 24,986 for 11/12 and 27,400 for 12/13. To get 3,495 in 12/13 there either would need to be a lower income or some other element added in.

The fall from 12/13 to 13/14 is partly due to the income rise from 24986 to 27400 (drops tax credits by nearly £1000). The remainder of the fall is due to the anomaly above that 12/13 seems to have been awarded £500 higher than your circumstances and income suggest.

IQ

Dan-Dan

during 11/12 we paid for £45 a week childcare , would this explain the anomoly ?

Icequeen99

No that wouldn't explain it.

The back page of your 12/13 award notice should show a list of elements included and then a reduction for income. Can you tell me what those are?

IQ

Dan-Dan

Hi

Back page of 04/12 - 04/13

WORKING TAX CREDITS (OTHER THAN CHILDCARE)
BASIC - 06/04/12 - 05/04/13 £1923.55
SECOND ADULT 06/04/12 - 05/04/13 £1952.75
30 hour element 06/04/12 - 05/04/13 £792.05
total working tax credit elements (other than childcare) £4668.35
reduction due to income - £4668.35
amount - £0

childcare elemnt of WTC
childcare elemnt 06/04/12 - 28/07/12 114 days £511.60
total childcare element of WTC - £511.60
REDUCTION DUE TO INCOME - £511.0
amount for the period £0

CTC elements

2 qualifying children
family elements
basic 06/04/12 - 05/04/13 £547.50
total CTC elements £5927.60
reduction due to income - "2432.09
amount for the period - £3495.51

part 3 payments

Amount to be paid £3495.51
Total £3495.51

payments already made £3495.51

due £0

Icequeen99

Dan-Dan wrote: »

Hi

Back page of 04/12 - 04/13

WORKING TAX CREDITS (OTHER THAN CHILDCARE)
BASIC - 06/04/12 - 05/04/13 £1923.55
SECOND ADULT 06/04/12 - 05/04/13 £1952.75
30 hour element 06/04/12 - 05/04/13 £792.05
total working tax credit elements (other than childcare) £4668.35
reduction due to income - £4668.35
amount - £0

childcare elemnt of WTC
childcare elemnt 06/04/12 - 28/07/12 114 days £511.60
total childcare element of WTC - £511.60
REDUCTION DUE TO INCOME - £511.0
amount for the period £0

CTC elements

2 qualifying children
family elements
basic 06/04/12 - 05/04/13 £547.50
total CTC elements £5927.60
reduction due to income - "2432.09
amount for the period - £3495.51

part 3 payments

Amount to be paid £3495.51
Total £3495.51

payments already made £3495.51

due £0

Ok, that makes sense. It is the different childcare amount.

So, part of the fall is because you are no longer paying for childcare (about 500 is attributed to that). The other part of the fall (around £1000) is because your income has gone up from 11/12 to 12/13. Your 13/14 award is being based on the higher 12/13 amount.

Unless your 13/14 income falls significantly then it is correct unfortunately.

IQ