Tax Credits help needed please

sankeylindsey1977

Hi,
Wonder if anyone can help me. In March this year I moved to a job which pays £5K less than my previous one. Tax / Child Tax credits were informed. At renewal I gave them my new salary details for the year which is £12K.
This year I had to deal with compliance and provide proof of my childcare payments etc which was done no problem.
My issue is that the award for this year states that they have used the figure £14250 as my income...I am getting less tax credits than when I earned more!!

Does anyone know why they do this? will they owe my when I renew in 2014?

I now get a combined total of £145 in ct & wt credits each week but the online calculator show I should get £213 p/w for an income of £12K and even £193 for the figure they have used of £14250.

Tried to get them to explain but they are useless!!

Thanks in advance

nashly

Hi

Your tax credit award will not be based on your new jobs salary until next April time when they send out new award packs, did you not ask them where they got the figure of £14250 from ?

sankeylindsey1977

Hi, they said that they took the difference in last years salary and this years and halved it.
Usually if my income has changed before they have just amended it no problem.
So, if that is the case my payments should jump up after renewal next year? Guess it's something to look forward to!

ruthiebee

It says on the calculator that they disregard the first £2,500 of a pay decrease in their calculations.

http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm

loracan1

Ring them, inform them of your predicted earnings for this year - for some reason they can't/don't adjust if you inform them before a certain date. They should put your tax credits up to where you'd expect them but any shortcomings uptil then will be paid next April.