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WTC and Child Tax Credit - so confused

Up until end April 2007 we were getting around £900 per month in tax credits.
Finally got around to doing our renewal and now they are saying we are only due about £300 a month

Our combined salary for 2006-7 did increase over 2005-6 as i went back to work after maternity leave, but the increase was less than £25k which I thought was the threshold ?

I don't understand why its dropped by so much. Nothing else changed. working hours all the same, cildcare costs all the same.
I vaguely remember reading somewhere that it is always more in the first year of getting it but I thought this applied only for the first year as in the child being less than one year old. This does not apply in this case, we only applied for it from child 2 being over 1 (previously hubbys salary was quite good but has dropped due to setting up a business which is yet to be profitable).

Does anyone know why its dropped so much ?

I have to phone them in the next few days for various things anyway but would like to be as best informed as possible before I call.
Thanks in advance for any help.
Jill
Jan GC: £202.65/£450 (as of 4-1-12)
NSDs: 3
Walk to school: 2/47
Bloater challenge: £0/0lbs

Comments

  • hotblu
    hotblu Posts: 293 Forumite
    Part of the Furniture Combo Breaker
    Hello,

    The reason your entitlement has dropped is because your new award for 07/08 is now based on 06/07 household income. The threshold just stopped an overpayment occurring.

    Regards,
    Hotblu
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