what is HMRC's definition of 'Financial Hardship'?

old_fat_biker_bloke

Anyone know what it is? Is there a formula they use or if it discretionary to the individual employee?

Thanks!!

old_fat_biker_bloke

blondebubbles wrote: »

It may be easier to explain the context.

Is this hardship for tax credit purposes or something else?

Hi - Yeah, I did consider that.... It is regarding Tax Credit and an overpayment but a general question too.

Got MP involved last year to try and get repayments reduced but they said since we have £52 a month left they wouldn't.... £1.71 a day (on average) with three young kids is a knife edge...

Icequeen99

http://www.revenuebenefits.org.uk/pdf/How_HMRC_handle_tax_credits_overpayments.pdf

This guide outlines their policy - this was on the HMRC website but is now being updated.

It should give you an idea of what can be done.

IQ

pmlindyloo

old_fat_biker_bloke wrote: »

Hi - Yeah, I did consider that.... It is regarding Tax Credit and an overpayment but a general question too.

Got MP involved last year to try and get repayments reduced but they said since we have £52 a month left they wouldn't.... £1.71 a day (on average) with three young kids is a knife edge...

At the end of the link given is their income and expenditure form.

If you are suffering financial hardship then I am wondering if you did not complete this as a true record of your expenditure. Did CAB /similar help you complete this?

I know that when dealing with debt repayments there are certain figures that are acceptable for certain expenditure. eg so much expenditure allowed for food/clthes etc

I am wondering whether this is also true for tax credits.

old_fat_biker_bloke

pmlindyloo wrote: »

At the end of the link given is their income and expenditure form.

If you are suffering financial hardship then I am wondering if you did not complete this as a true record of your expenditure. Did CAB /similar help you complete this?

I know that when dealing with debt repayments there are certain figures that are acceptable for certain expenditure. eg so much expenditure allowed for food/clthes etc

I am wondering whether this is also true for tax credits.

Thanks pmlindyloo!! Can anyone quantify what the 'certain figures' and 'certain expenditure' is - by that I mean no two shops are the same and my son had his PE kit stolen a couple of months back which cost £35 + trainers to replace....

Icequeen99

old_fat_biker_bloke wrote: »

Thanks pmlindyloo!! Can anyone quantify what the 'certain figures' and 'certain expenditure' is - by that I mean no two shops are the same and my son had his PE kit stolen a couple of months back which cost £35 + trainers to replace....

There are 'trigger figures' that they use as reasonable amounts for main things like phone, gas, electric, shopping for a household etc...but they are just guidelines. If the figures you provide are reasonable there should be no problem with any proposal you put forward.

IQ

pmlindyloo

If you require further help then CAB would be able to help you complete an income and Expenditure form and check that you put reasonable amounts for each catagory.

It is a difficult thing to complete because of expenditure that doesn't occur each month.

For example most people don't spend money on clothes each month but you still should put down a monthly figure to cover the times when you have to buy clothes.

old_fat_biker_bloke

pmlindyloo wrote: »

If you require further help then CAB would be able to help you complete an income and Expenditure form and check that you put reasonable amounts for each catagory.

It is a difficult thing to complete because of expenditure that doesn't occur each month.

For example most people don't spend money on clothes each month but you still should put down a monthly figure to cover the times when you have to buy clothes.

Thanks again!! That was why I mentioned the PE kit, who could have foreseen that.... Then there are Birthday party invites - two kids under 16 we get quite a lot of those!! Can NEVER say 'No, you can't go' as that's just too unfair on them!!

I hate troubling the CAB as I always feel there's someone else more deserving of their time...

RAS

Hi

Even people who are bankrupt are allowed to put in some money for childrens' activities in their budget. It used to be £5 per week per child, I think.

With respect to things like clothing, car, birthdays, TV licence etc you need to work out how much you spend each year and divide by 12.

The hard bit is putting that aside from the money for utilities, food and day to day travel, so it is there when you need it and not absorbed into day to day expenses.