Tax credits help please

johnsmith01942

Just had a tax credits award of 609/year for 2013-2014 based on a combined income of £35627.00

We got 0 for working tax credit element, and 0 for childcare element of working tax credit. But for child tax credits we were given the £609.03. This is paid at £59 every 4 weeks.

Payments in 2014-2015 are 24.42 every 4 weeks.

Just a couple of questions.

1. what happens if my salary for the year 2013-2014 is £8500 more than 2012-2013. Would I have to pay back the money I have received this financial year or just get less in 2014-2015.

2. Why have they given me £609 this year, but just 24.42 every 4 weeks next financial year based on same information.

thanks in advance.

johnsmith01942

anyone help please

Icequeen99

johnsmith01942 wrote: »

Just had a tax credits award of 609/year for 2013-2014 based on a combined income of £35627.00

We got 0 for working tax credit element, and 0 for childcare element of working tax credit. But for child tax credits we were given the £609.03. This is paid at £59 every 4 weeks.

Payments in 2014-2015 are 24.42 every 4 weeks.

Just a couple of questions.

1. what happens if my salary for the year 2013-2014 is £8500 more than 2012-2013. Would I have to pay back the money I have received this financial year or just get less in 2014-2015.

2. Why have they given me £609 this year, but just 24.42 every 4 weeks next financial year based on same information.

thanks in advance.

Is the 35,627 your 13/14 income or 12/13 income? Have you estimated your 13/14 income as 8,500 higher to HMRC?

How old are your children?

IQ

johnsmith01942

35627 is the 12/13 income that i put on the tax credit claim form. This is our first claim.
I have a new job which started last September and my annual salary is 8500 more than my salary for 12/13. I haven't told HMRC about my new details as just got the award the other day and the form only had space for 12/13 salary details.

To be totally honest I am not 100% sure what our combined salary will be for 13/14 as my salary has gone up but my partner will be on stat maternity pay for some of 13/14 and so salary will be different for her than 12/13 too.

children are 3 1/2, and 6 weeks.

Icequeen99

blondebubbles wrote: »

You'd need to calculate even a rough estimate for 13/14 to know how your claim would be effected.

The 14/15 payments are probably changing in line with the proposed budget changes. Tax credits have pretty much gone down for everyone over the last few years.

There are no announced budget changes for 14/15 so it can't be that.

You need to work out your 13/14 estimate taking into account your £8,500 and the £100 disregard for each week of maternity pay for your wife. Then give them that figure. Providing it isn't more than £5000 compared to last year then you won't be overpaid.

IQ

Icequeen99

blondebubbles wrote: »

There hasnt been an announcement but that awards notices always show a provisional payment for the following year based on what they think the changes might be.

possible up-rating yes. But that wouldn't account for a change downwards as much as the OP has suggested. I have never yet seen provisional payments take into account more complex changes.

OP - what was your 11/12 joint income?

IQ

johnsmith01942

Icequeen99 wrote: »

There are no announced budget changes for 14/15 so it can't be that.

You need to work out your 13/14 estimate taking into account your £8,500 and the £100 disregard for each week of maternity pay for your wife. Then give them that figure. Providing it isn't more than £5000 compared to last year then you won't be overpaid.

IQ

I am new to this tax credits as first time I have ever claimed. You will have to forgive me but what do you mean by £100 disregard for each week of mat pay? My partner gets 6 months full pay and then is on stat maternity pay if that makes any difference.

johnsmith01942

Icequeen99 wrote: »

possible up-rating yes. But that wouldn't account for a change downwards as much as the OP has suggested. I have never yet seen provisional payments take into account more complex changes.

OP - what was your 11/12 joint income?

IQ

I was at university in 11/12 so our joint income was a lot less than 35,000, around 24,000 per annum. But we didn't claim anything.

Icequeen99

You can deduct £100 for each week of maternity pay. So if she takes the full 39 weeks off, you can deduct £3900 from her income.

See here: http://www.hmrc.gov.uk/manuals/tctmanual/tctm04113.htm

What date did you claim tax credits?

IQ

johnsmith01942

Icequeen99 wrote: »

You can deduct £100 for each week of maternity pay. So if she takes the full 39 weeks off, you can deduct £3900 from her income.



What date did you claim tax credits?

IQ

Amazing what you learn on here, thanks.
We claimed about 4 weeks ago, and received notification and first payment on the 19th July. I just filled in the tax credits form with her full income for last year as she was/is getting full pay for the first 6 months of her mat leave.

Mat leave started on 30th May so for next years claim/reclaim I can deduct £3900 from her final wage/p60 and then add my full wage. The figure for this year and next year may not be so far from each other based on my basic calculations.

Icequeen99

johnsmith01942 wrote: »

Amazing what you learn on here, thanks.
We claimed about 4 weeks ago, and received notification and first payment on the 19th July. I just filled in the tax credits form with her full income for last year as she was/is getting full pay for the first 6 months of her mat leave.

Mat leave started on 30th May so for next years claim/reclaim I can deduct £3900 from her final wage/p60 and then add my full wage. The figure for this year and next year may not be so far from each other based on my basic calculations.

If her maternity leave (full pay) started on 30th May, yes you deduct 3,900 from her 13/14 income figure if she takes the full 39 weeks.

But are you saying that some of her full pay maternity leave happened before 6 April 2013? A bit confused by that.

IQ