Tax credits question

honey71

Hi everyone, I'm just wondering if anyone is willing to tell me, if they have similar circumstances as me, how much they have been awarded for tax credits for 2014/15. I'm new to all this an my award seems very low so just wanted a gage of what others have been awarded. We have a family income of £22,750, estimated as I'm on maternity leave, and we had our first child in April. We both work full time and have no child care costs. We have not been awarded any working tax credit (expected) but have only been awarded £317 child tax credit for the whole of 2014/15 which works out at about £6 a week. I have been on the phone with them a few times but they are saying it's correct. Is it just me or is this very low? Thanks

Icequeen99

honey71 wrote: »

Hi everyone, I'm just wondering if anyone is willing to tell me, if they have similar circumstances as me, how much they have been awarded for tax credits for 2014/15. I'm new to all this an my award seems very low so just wanted a gage of what others have been awarded. We have a family income of £22,750, estimated as I'm on maternity leave, and we had our first child in April. We both work full time and have no child care costs. We have not been awarded any working tax credit (expected) but have only been awarded £317 child tax credit for the whole of 2014/15 which works out at about £6 a week. I have been on the phone with them a few times but they are saying it's correct. Is it just me or is this very low? Thanks

What was your joint income for 13/14 tax year? When did your maternity leave start? Have you deducted £100 a week for each week of statutory maternity pay from your estimate?

IQ

starfish1975

Our situations are similar.. One child and no registered childcare costs. Income for 2013 was 24k.. Got notification that I am entitled to £9.65 tax credits for 2014/2015... Which is below their threshold for payment so we get nothing.

honey71

Thanks IQ, our joint in one for 2013/14 was £33k, my mat leave started on the 03/04/14 and yes I have deducted the £100 a week for my estimated income. I'm also questioning why my 2015/16 payments have been forecast at £30 a week, when I will be back at work by then, but the tax office say that their system can't see that info so why is it included in your award notice?

Thanks for the reply starfish.

zagfles

There's a £2500 disregard for income falls, so your tax credits this year will be based on your estimate plus £2500 ie £25250 which makes about £300 per year.

Next year they'll initially base it on this year's so on £22750, giving you about £1350. If next year's will be higher give them a ring at the start of the tax year, for income rises the first £5000 is disregarded so income in 15/16 will be £33k it will be based on £28k when you tell them.

honey71

Thanks Zagfles, that explains it. Why the tax office can't explain it like that I'll never know! So, does that mean that at the end of the year I'll get a back payment for the differance between my actual income and the disregarded income?

Icequeen99

honey71 wrote: »

Thanks Zagfles, that explains it. Why the tax office can't explain it like that I'll never know! So, does that mean that at the end of the year I'll get a back payment for the differance between my actual income and the disregarded income?

No you won't unfortunately. The disregard applies for the whole year, including when they finalise the award.

IQ

pmlindyloo

Icequeen99 wrote: »

No you won't unfortunately. The disregard applies for the whole year, including when they finalise the award.

IQ

Sorry to hijack this thread.

Icequeen, can you look at More Help Required Please thread?