Tax credits and potential payment questions...

Mojo0070

Hi all

Ok here's the situation, I was put on statutory sick pay from my job back in September. At that time I phones the tax credits but they told me because it was temporary, I didn't need to do anything, I would just continue as normal.

My sick leave was then extended indefinitely due to my condition worsening, this meant that my yearly income estimate had gone down by more than £2500 so I called them back and gave them a new estimate (initial figure was £12600, new figure was £8500).

Because of this, they will use my current years income for my ongoing payments instead of my previous years income, this will result in my payments increasing, and they will backdate from April this year.

However I have been told 2 different things by there advisors. One of them said that any money they owe will be spread over the rest of the tax year and added onto my current payments on top of the fact they will increase anyway.
The other said that any money they owe will be held as a potential payment and payed to me when I give them my actual year income in April.

2 things, which one is right? And if the potential payment is correct, would I be able to ask for it early based on financial hardship as I have read in an article from there own website, I can't post links apparently but the article is for members of staff there but it still proves that the rule exists.
Has anyone heard of this or tried it?

Sorry for long winded post, thanks all

princessdon

How many children, so you get WTC, have they ended.

Mojo0070

I have 2 children, I also get child tax credits yes. I will continue to get the working tax until the end of March at which point I will have been on SSP for 26 weeks.

zagfles

The second one was right - if you tell them of a drop in income they won't backdate, they'll pay it on renewal. See http://www.hmrc.gov.uk/manuals/tcmanual/TCM0234000.htm It looks like there are circumstances (eg hardship) under which they can release a potential payment early.

Mojo0070

According to the benefit calculator on this site I get £41 p/w working tax at the moment which I do on £12600, with the change to £8600 per year it goes up to £72. Does this sound about right (couple, 2 kids)?