My WTC award - is it right?

Liverbird1

Hi,

This might be a bit long and complicated so please bear with me!

I went to Uni in 2004 and chose to leave at the end of my 2nd year in June 2006 as I wasn't coping with the course. I didn't start claiming JSA until Sept 2006 and claimed this thru to April 2007, when I started my present job. Shortly before coming off the JSA, my advisor at the Jobcentre suggested putting in a claim for WTC to see if I was entitled to anything, which I did, filling in the form to say I was finishing on JSA and starting a new job earning £14K a year.

Now as I used the old form for 06/07 (as the new tax year forms 07/08 weren't released when I sent it off) I provided my income details as requested for the 05/06 tax year. At this point I was in Uni and had a part time job, I earnt approx £2400 that year, sorry I don't have the exact figures on me at the moment. I've since had my Tax Award notice back to say that I am entitled to approx £4500 this year, this is the basic plus two additional payments for working 30hrs plus weekly and for being disabled (I am profoundly deaf and claim DLA also).

This is great, but I'm worried that it's not right, that I've been overpaid and will have to pay it back. I've checked the details on the award notice and whilst everything seems correct, I notice they haven't asked for any income details for 06/07, which I thought was strange cos I thought WTC was supposed to be based on your income for the previous tax year? Also, if I really am entitled to this amount this year, what happens next year, if I have been earning £14k since April 2007, surely this will take me over the threshold and I will no longer receive WTC? (This is fine, just want to check this is what happens!)

Thanks muchly to anyone that can help!

:beer:

kelloggs36

Have you called them to ask whether the years are right?

Liverbird1

No, not yet, seems a bit daft to query the payment when all the information I have given them is correct as per the award notice? Also would have to get my sister to ring up for me cos I can't use a phone and I don't have a textphone!

System

Have a look at your award notice it should tell you above what income you have to tell them of any rise. Technically as long as your 2007/2008 income does not go above that threshold then your entitlement for 07/08 will not be affected.

However it would be advisable to tell them before renewal time next April that your income has risen so that they can ensure the provisional payments you receive from 6 April 2008 (whilst they wait for you to complete your annual declaration) are not too high and you don't end up with an overpayment for the 2008/09 tax year.

hotblu

Hello,

Your Tax Credits are based on your py income (05/06) because you claimed in 06/07, this means becasue your income is in the lowest earnings band you are recieving the maximum amount which is what you have been awarded. You should have been asked to complete a renewal to confirm your actual income for 06/07 (which should include your earnings/JSA). This will then result in a actual award for 07/08 which will confirm your entitlement based on last years income, again you will be in the lowest pay band so will recieve maximum amount. Not all good news though... make sure once you have completed the renewal and recieved your current year actual award that you do a Change of Circumstance and remove JSA for this tax year and up date your earnings to the £14,000. Although it wont affect this years payments (becasue you have a threshold of £25,000) next year your payments will reduce because your Tax Credits will then be based on this years income. Hope this helps and I haven't confused you further.

Regards
Hotblu

Liverbird1

Thanks all!

Hotblu - that's very helpful and not confusing at all! - only thing is I haven't been asked to complete a renewal to confirm my actual income for 06/07 at all? Should I just ring up and request one?

Also, they should already know that I have left JSA and started earning £14K from this April, cos I had to give those details on the original form - I guess it's probably best to double check they are aware of this though?

Thanks again!

hotblu

If you applied prior to 05/04/07 then you should have recieved a renewal pack. I would ring them to confirm wether they have your actual income for 06/07 or not. I probably wasn't clear with the JSA part, when you do give your actual income for 06/07 you have to confirm your earnings as an employee and also the amount you recieved in JSA (if it was contributions based). Then, when that is all done, and you re-estimate your cy income to £14,000 make sure they remove the JSA earnings as it will have already been bought forward to this year automatically. Give them a call tommorrow (we are really busy at the moment) so I would advise to eitheir call 8.00am or around 3.30pm. Let me know how you get on and if you have any further quiries just ask.

Regards,
Hotblu

Liverbird1

Hi Hotblu,

Couldn't get through on the phone last week then was away for the weekend, but my renewal pack was on the doormat waiting for me when I got back, so that solves that problem! Just need to fill it in and return it now. I then need to wait for CY actual award notice before I do a COC, is that right? The COC - can I give the details over the phone or do I need to request another form to fill in and return?

Thanks again!

:T