CTC- Please Help, I am so confused!!! *LONG*:0D

tressls

Hi there

Right, I am trying to work out our CTC entitlement for the future.

I went from being a FT student with a working husband (tax year 2011-2012), to both working FT when I qualified , so from Oct 12- April 13 I only got half I would normally get a year. I informed TC when I started work.

We were getting CTC up to that point at over £90 pw (2 kids) and when I told them I was now working and that our expected income for 2012-2013 had now increased, I expected this to drop or stop. However they carried on paying it the same until the end of the tax year in 2013. I then expected, based on us both working FT (again they knew this as I said 2013-14 would be a full year wage not just half), for CTC to stop completely as if you look at the tables etc, you are not entitled to anything for 2 kids when you earn over a certain amount, which we do. However they said we were still entitled and the amount is £22 per week. This is on top of an income of roughly £43k between us (predicted by me at the time based on both our wages). I thought this was wrong then thought maybe it is based on 2012-2013 income which was about £29k. But as I had told them it would be so much different with me working the full tax year I thought they would pay us (well... not) based on what we would actually be getting this tax year.

Now, I am expecting child no. 3.. next week in fact. I have been on mat. leave since 2nd Jan, so from then until the end of the tax year this year is about 13 weeks. I started getting maternity pay (which includes SMP) from 2nd Jan. So- working out our 2013-14 income based on what we both already had earned to date on our most recent (January) wage slips, plus what I am predicted to get (ish) maternity pay over the next 2 months (Feb and Mar), plus what OH will get in Feb and Mar, minus 13 weeks SMP at the first £100 (£1300).. I work it out that during 2013-14 tax year we will have earned roughly £40k. I think we shouldn't have been entitled to any TC based on 2 kids, or even if we had the 3rd one already (which we don't yet anyway).

My last TC award says that from April 2014 they will base our TC award on an annual joint income of £30,256. Not sure why as they knew our prev year income was £29404 and they knew that was because I didn't start until October 2012. I told them I would be working the full year. They have said that from April this year payments will drop to around £19pw. However, since we will have earned approx £40k, I am guessing that when I call them, they will stop? If it's the case that our 2014-15 award is based on 2013-14 income. Which is fine and understandable.

Here comes the next question. When I finish mat leave, hubby is leaving work to look after the children for various reasons, so we expect a big drop in income. But that is only from October 2014.

From April 2014-Sept 2014 I expect to earn (roughly) £7k which is inclusive of 25wks SMP. So ? disregard £2500 = £4500. Husband will have earned £9800 ish in those 6 months. Figures before deductions obviously. So £14,300 between us, after SMP at £100 pw x 25wks. THEN from Oct 204-April 2014, I have based on me earning half my salary which is £11000. So - at a rough guess- our income for 2014-2015 will be about £25,300. Based on having 3 kids, according to the tables, we WOULD be entitled to CTC of around £5785 per year/ £111 per week. However I am wondering if we would get this as obviously I think we have been overpaid thus far. If we have been getting CTC since April 2013 at £22 pw, that they then say we owe (despite updating them all the time), that would result in overpayment of the full amount (it's actually £1256 according to the last award notice we got in August last year after renewal). I don't think we will get anything from April as I will be ringing as soon as I know figures, and telling them what the actual income for 2013-14 was. But then because our income from 2014-2015 ix going to drop a LOT, would we be entitled to claim CTC again? If so, can I tell them the expected figure as I have worked out above, even though the actual change (ie hubby quitting work) won;t happen until October. Or would I call in October to say- as expected- our income for 2014-15 has now dropped by several thousand pounds as husband no longer works etc? If they paid us from April this year, based on what I am telling them we will earn 2014-2015, that would be £111 per week. Then I am guessing we would owe , so they would just deduct the full amount owing off the full award for that year. Which I worked out to be £88 per week we may get. However, if they pay us nothing from April until I ring up and confirm the income change in October, surely they would still owe us the full award for the 2014-15 year, which would then have to paid over 6 months not 12? And by then I will either have had a letter to repay overpaid CTC surely? Since they wouldnt be able to deduct it from us if we weren't getting paid?

THEN! (sorry), as our 2015-16 income would be solely based on my income alone for the FULL year, I think the entitlement for CTC would increase slightly again, to around £130 pw... but am not sure.

Sorry to ramble on guys, hope this makes sense... I am fully expecting CTC to stop totally when I tell them in March/April when I get my wageslip and he gets his, and can give them a full 2013-14 income. I can't understand why they are paying us anyway and I said this about 5 times on the phone last year, as it will only result in overpayment surely? And then if they base 2014-15 TC award on 13-14 income, it will be wrong again as it will have dropped a lot by the time the next (14-15) financial year is done with.

Can anyone advise me if I am working things out right/wrong? Thanks x

tressls

blondebubbles wrote: »

Hi, I can try and look at this for you but there are so many numbers I cant keep track (been a long day and its only just lunch time!). Tell me if I've got this right?

12/13 income = £29000
13/14 income = £40000
14/15 income = £25300

Did you have any childcare costs in 13/14? If so what cost?
Do you, your partner or your children det DLA or any other disability benefits? If so what rate?
How many hours have you both been working and how many hours will you be working when you return to work?

Hi! Sorry just seen this... yes, sounds about right. Obv the figures for 13/14 are based on what we have earned so far, and what I expect to earn in the next 2 paydays and what DH will earn in the next 2 months. I have taken £1300 off for the 13 wks of SMP... not sure if right?

And 14/15 is based again on what I expect to earn based on my mat pay rates, minus 25 weeks SMP for the first £100 pw so £2500, and DH's wages are the same every month. Then based my Oct-March income on half my yearly salary. Just for rough figures.

No childcare costs no as either mine or his mum helped out.

No children have any DLA etc.

Both of us working FT so 37.5 hrs per week me, probably about 40 him.

I would be going back on 37.5 hours.

) xx Also baby is due next week (induced), so should be here by 9th Feb latest (I hope). Obviously up until then it;s been 2 children onlyx

menollyke

tressls wrote: »

From April 2014-Sept 2014 I expect to earn (roughly) £7k which is inclusive of 25wks SMP. So ? disregard £2500 = £4500. Husband will have earned £9800 ish in those 6 months. Figures before deductions obviously. So £14,300 between us, after SMP at £100 pw x 25wks. THEN from Oct 204-April 2014, I have based on me earning half my salary which is £11000. So - at a rough guess- our income for 2014-2015 will be about £25,300. x

I was just reading this as we are soon in a similair situation. What I don't understand of your calculations above is why you only count six months salary for your husband? Wouldn't your total income be his full years income plus half your years income and your SMP minus 100 a week you can deduct. And would that not make it closer to 35.000? Or is your husband only working half the year?

tressls

menollyke wrote: »

I was just reading this as we are soon in a similair situation. What I don't understand of your calculations above is why you only count six months salary for your husband? Wouldn't your total income be his full years income plus half your years income and your SMP minus 100 a week you can deduct. And would that not make it closer to 35.000? Or is your husband only working half the year?

Hi yes, because when my mat leave is over I will return to work roughly 1st Oct, he would stop work so only have earned a wage from April-Sept (6 months) x

tressls

Thank you I never thought of the disregard! Had baby early and called tc they advise I call back ASAP when I know how much we earned this tax year so will do that when I get march payslips or p60 etc. Thanks guys x