Working Tax Credits and Self Employed Losses

gazfocus

I am looking for some advice. Following a debate with the Tax Credits people on the phone, my wife and I have received letters today that are provisional tax credits saying that we were overpaid last year and our entitlement to 2015 is £0.00, however, this is because they have not taken into account my Self Employed Losses.

When we had the renewal forms through, I did as the guidance notes suggested and deducted the self employed losses from my PAYE income, but they have ignored this.

Is there anything I can do about this? Is it worth arguing with them?

Is it worth writing to them and including copies of my self assessment tax returns?

Really at a loss here.

gazfocus

blondebubbles wrote: »

Tell the helpline its incorrect. If they cannot change it or pass it to The tax credit office then make an appeal.

Whether it's worth it really depends on the circumstances of the claim, what's the figures are etc

Thanks. Well they're saying we were overpaid by £2400+ in 2013/14 so I guess from that alone, it's definitely worth it.

I will print my self assessments off tonight and get the figures I need and phone them after work tomorrow.

gazfocus

blondebubbles wrote: »

Here is the appeal form of you need it - https://www.gov.uk/tax-credits-appeals-complaints

It also mentions a dispute but an appeal would be more appropriate.

Thanks.

Is it normal for WTC to not take any notice of what you put on the renewal forms? They are saying that they received information from my employer saying I was paid £xx.xx which is correct, but I put on my self assessment that I made self employed losses (last year I lost £10,000 which resulted in me closing the business.

Am I right in that for WTC, where it asks "What are your earnings from all paid jobs", I would put my wages minus my self employed losses?

I just don't understand why they've ignored it.

dori2o

This is the big problem with blindly accepting what the RTI system says. It also causes a problem for people who pay into private pensons or who make substantial contributions to charities.

OP, have you done your SA return? Do you have the SA302 (Tax Calculation) which shows that you have made a loss?

First thing to do is contact Tax redit office and explain that the income figure they have used for 2013/14 is incorrect as you made a loss through SA which you are offsetting against your PAYE income. Make sure you have the tax calculation to hand so you can tell them what the amount is.

If they refuse to deal withh it over the phone then you will have to do the following
1) Make a formal complaint during your telephone call.

Ask to be put through to a Complaints Manager (One may have to call you back if there are none free to speak to immediately). Put to them the facts and request a written reply to your complaint. This will be logged and investigated.

2) Appeal immediately against the Finalised tax credit award for 2013/2014 and the Provisional award for 2014/2015. Take a copy of the SA302 tax calculation and send it in with your appeal. You only have 30 days from the date that the award notice was issued to make the appeal so try and sort this immediately if you can.

Both the taxes and tax credits advisors have brought this matter to the attention of management, but alas we're only advisors,, only the ones who take the flack over the phone for their idiotic processes, what do we possibly know about it.

dori2o

blondebubbles wrote: »

Raising it to contact centre management will do nothing, they have no control. The staff need this to go up to director level in my opinion.

However that said, it is only the first year. I am trying to look on the bright side that next year may be better.

Thats what I meant. It has been raised to the Directors office but trying to get them to see sense is like puling teeth.

I know in our office which is predominantly Taxes we raised the issue before TC started purging the information from RTI during the checks.

We were assured that there wouldn't be an issue as those who were both self employed and employed would be put onto a worklist and the checks would be done manually.

It just goes to show that automation isn't all it's supposed to be.

Icequeen99

dori2o wrote: »

Thats what I meant. It has been raised to the Directors office but trying to get them to see sense is like puling teeth.

I know in our office which is predominantly Taxes we raised the issue before TC started purging the information from RTI during the checks.

We were assured that there wouldn't be an issue as those who were both self employed and employed would be put onto a worklist and the checks would be done manually.

It just goes to show that automation isn't all it's supposed to be.

And yet these are the same directors who are not happy with the volume of appeals.

Well if they sorted the processes out so these things were dealt with properly as you said above then people wouldn't have to waste helpline resources and then TCO staff time dealing with an unnecessary appeal.

(not saying you shoudln't appeal OP - of course you should, I am just saying HMRC are creating work for themselves)

IQ