Overpaid child tax credit but no change in circumstance?

Icequeen99

Pedent wrote: »

You said your income last year was £30500. Was that a big increase on the previous year?

This is the important piece of info. What was your joint income in 11/12?

IQ

Pedent

If this year's income is £30500, and last year's income was £30500, and the year before's was £20500, then if everything else stayed the same a reduction of £79/week would be expected. That's because the increase of £10000 would be disregarded for the first year.

LucyElizabeth_2

I'm not sure about the previous year, I'll find the statement. Thank you, that might explain it although I doubt it was hugely different.

I don't mind the reduction, it's not ideal but if that's what we're entitled to then fair enough. It's having to pay money back when I didn't expect it. Because we've kept them up to date with it all, it's a bit of a shock for it to change so much.

LucyElizabeth_2

I do wish they'd spell it out clearly

LucyElizabeth_2

I found the 2011-2012 the joint income was £22000 approx so would that explain it?

Wish I had known!

Pedent

The way disregards work is a bit odd, and gives some strange results, but there are reasons for it.

If it's any consolation, then think of it this way: the disregard may have caused you some confusion, but it also gave you £3500 bonus last year.

twinkle-star

Not sure if the Tax Credits rules have changed but it used to be that you get an increased payment while you have a child under one year old. If your child is now over a year old then maybe this has contributed to the decrease?

Horseunderwater

twinkle-star wrote: »

Not sure if the Tax Credits rules have changed but it used to be that you get an increased payment while you have a child under one year old. If your child is now over a year old then maybe this has contributed to the decrease?

That stopped some time ago. So no it is not that. It is the income disregard rule that has affected this person's TC award.