Child Tax Credit Question

Potbellypig

So here's the scenario...


I have 2 children and a partner working part time. The time is April 2013 and I have a job earning over £35,000 a year and I apply for CTC's (I know I won't be entitled to it but you never know what will happen). We got rejected as we knew we would. Fast forward to November 2013 and I got made redundant and I had earned £20,000 by this time (I didn't do much overtime). My partner had earned about £4000. We called the tax credits up and they said that because of my wage so far, we would be entitled to a whopping £8 a week. I thought this was wrong but went with it. I then start a new job in February and re-apply for tax credits last week (we had to wait for our form to be generated!). My final figure for the last tax year was £23,000 and my partners was £5500.


My question is... We roughly got paid about £8 x 20 weeks of tax credits for the last tax year. That works out roughly £160 for a family of 4 earning £28,500 in a year. The bloke on the phone to the tax credit people was about as interested in helping me as much as if I was taking his money off him, but I wanted to know if I am entitled to a rebate for last year? Surely I should be...


Thanks.

rachaelpie

I'd say not im.afraid. tax credits are available for wages of 24 or 26k, something like that, the fact u earned over that amount would.mean u are not entitled to a rebate, u may even owe them as they may have overpaid.

rachaelpie

But blonde bubbles is awesome at advise so listen to them

nannytone_2

rachaelpie wrote: »

I'd say not im.afraid. tax credits are available for wages of 24 or 26k, something like that, the fact u earned over that amount would.mean u are not entitled to a rebate, u may even owe them as they may have overpaid.

26k is the cut off for 1 child ( no disabilities, no childcare) for 2 kids it is more like 32k

rachaelpie

nannytone wrote: »

26k is the cut off for 1 child ( no disabilities, no childcare) for 2 kids it is more like 32k

My bad, didn't realise. Sorry!

Horseunderwater

Wait for the final award for last year to arrive & check it for accuracy. If all is correct it will then tell you on last page how much is due, but as it's based on last years income you need to work out what your estimated income for this year will be. Then tell them - suggest over estimating a little - this will help prevent any overpayment during this year. There are income disregards in place too. The approx cut off for 2 x children is £32k.

stampede

With the £2500 disregard for drop in earnings from previous year, calculations more or less mean that they work it out from £31k (£28.5K+£2.5k disregard) earnings which means you probably won't be entitled to a fat lot this year

Potbellypig

blondebubbles wrote: »

When you say the claim was rejected to you mean you got an award saying you had a nil award? I just ask is a rejected claim is different to a nil award.

A rejected claim means you aren't entitled. A nil award means you would have been entitled but income is too high.

Before I work out the figures can you confirm what the 2012/13 income was?

Yea I mean a nil award (due to high income).


We never received anything for 2012/13 either as my wage was nearly £34,000.

Potbellypig

Thanks for the rest of your responses.

zagfles

On the assumption your partner doesn't work 30+ hours but you did while you were in work, your final award will probably be around £400, accounting for the disregard as above and the 30 hour element for about 9 months of the year. So you should get around £240 or so underpayment.

Potbellypig

blondebubbles wrote: »

As stampede explained, there is a £2500 disregard for tax credits when your income decreased from one year to the next.

So if your household income went from £34,000 to £28,500 your award for 2013/14 will be based on £31,000.

If no childcare or disabilities the limit for tax credits for 2 children is approx £32000. You may be entitled to around £600-700 for 2013/14.

Your 2014/15 award will now be based on the figure of £28500 unless you expect a change to your 2014/15 income. If not you'd be entitled to approx £1700.

Great, thank you. We've put the figure for 2014/15 based on £28,500 but I'm on the cusp of promotion so I think we'll be back to 'not being entitled' before long.


2 further questions based on that then...


We're still receiving this life changing £8 per week at the minute. If, for example, we are entitled to £1700 for 2014/15, will they backdate from April 1st? Then what happens if and when this promotion and payrise happens? I'd be expecting a payrise to approx £31,000 (plus my partners wage of £5,000).


You've been a great help.