We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

UNDERpaid by tax credits what happens?

Hi my husband earned less than he did last year by about £240, also the prediction they made for his salary this year was about £700 higher than his actual earnings.
I have only just renewed on 15/7/13 as the tv advert reminded me i had not done this yet.
I also noticed that the last 3 months payments were a bit less than the rest of the year and the paperwork shows this higher estimation of his earnings as the reason for the lesser amount.

So does this mean we have been underpaid? What happens in this situation do our payments just go up to make the difference? Is it a lump sum and will it be backdated?

Comments

  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    weesie81 wrote: »
    Hi my husband earned less than he did last year by about £240, also the prediction they made for his salary this year was about £700 higher than his actual earnings.
    I have only just renewed on 15/7/13 as the tv advert reminded me i had not done this yet.
    I also noticed that the last 3 months payments were a bit less than the rest of the year and the paperwork shows this higher estimation of his earnings as the reason for the lesser amount.

    So does this mean we have been underpaid? What happens in this situation do our payments just go up to make the difference? Is it a lump sum and will it be backdated?

    No, unlikely you will have an underpayment unless your combined income fell by more than £2,500 when compared to 2011/12.

    The only exception would be if you were already being paid on a lower estimate.

    IQ
  • weesie81
    weesie81 Posts: 214 Forumite
    Part of the Furniture Combo Breaker
    Thanks for your reply bit gutted now :-(
    worked out with the calculator on here we have been getting approx £40 a month less than we should of been getting seems a bit mean they do not have to give you it, if i had got it wrong i am sure they would not let it go in my favour.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.