Tax Credits withdrawal, why have they started paying me again?

nad1611

Hi
As you can see from the Title, I rang Tax Credits in February to inform them that my husband would no longer be working from July.
and that we therefore would not be entitled to Tax Credits. We only receive Wtc not CT.

We received a letter confirming that I would no longer receive Tax Credits from April. We had the last payment from April 1st, then nothing so thought it was all sorted. So yesterday I went into my online bank account and notice from last week they have started paying me again, then I receive a letter saying that my withdrawal has been cancelled ?

Obviously I'll ring and enquire and despite phoning 3 times today it's obviously a busy time and I haven't got through yet. Can anyone shed any light on this?

shegirl

Why would you tell them in February that he will no longer be working from July?

Is it possible that they are continuing because he is still working (it's not July yet!!!) and that they thought the stopping was a mistake that was made?

Could it possibly be to make up for an underpayment?

nad1611

shegirl wrote: »

Why would you tell them in February that he will no longer be working from July?

Because Tax Credits would renew within 5 weeks (April) of my telling them and I wanted to avoid payments continuing beyond April and then end up owing money.

shegirl wrote: »

Is it possible that they are continuing because he is still working (it's not July yet!!!) and that they thought the stopping was a mistake that was made?

Don't know why they would continue them when they confirmed they would stop and they did stop albeit for a week or so. Why would they think it was a mistake, unless I informed them of such.

shegirl wrote: »

Could it possibly be to make up for an underpayment?

Surely the letter would say as much. We did have a potential payment of £800 showing on our award for the last Tax Year, but I don't believe we'd get that until we have confirmed what our actual income for 201/15 was and we won't do that until we have P60, Interest from saving etc.

shegirl

Just phone them and ask.

However,you could have just called them and told them your husband is no longer working when he has actually stopped, if you need the money (hence claiming it), then why stop it a few months early? They would just have stopped them if you told them in july

nad1611

shegirl wrote: »

Just phone them and ask.

However,you could have just called them and told them your husband is no longer working when he has actually stopped, if you need the money (hence claiming it), then why stop it a few months early? They would just have stopped them if you told them in july

I don't think you've quite grasped the situation here. If I hadn't told them then we would have continued to receive benefits to which we are not entitled!! If I had waited until July I would have an overpayment of 3 months worth of Tax Credits,which we'd have had to pay back. I did say in my original post I have tried ringing but can't get through so tried here.

nad1611

blondebubbles wrote: »

Does the letter say nothing other than they have cancelled the withdrawal?

The letter's header is, "Provisional Tax Credits for 2015/16".

It goes on next to give the Tax Credit amounts. Then at the bottom of the page under "why are we writing to you" It says, "Your withdrawal has been cancelled. If you still wish to withdraw from Tax Credits please contact us".

This seems a strange thing to have done. I haven't spoken to them since I informed them and received a confirmation letter that they would cease, so it's not as though I have retracted my original request.

nad1611

blondebubbles wrote: »

Sorry but it is you that is incorrect. If working between April and July and work the required number of hours then you are eligible between April and July and also get a 4 week run on. The amount you are entitled to is then based on income.

In that case I apologise, but am going on what I was advised at the time and after telling WTC we would earn more than £5000 in this Tax Year if he was to continue above last years income in this Tax Year? I advised them of this but neglected to state that here.

nad1611

Sorry it's not clear. Going on what I believe to be the case and how WTC agreed it. The Tax Credits are based on the Previous year unless the Current Year would exceed the £5000 disregard.

So when I explained that my husband would be retiring in July, they asked what his earnings would have been for the year. I told them he would earn about £10,000 more if he had stayed in employment in 15/16, than we earned in 14/15. So they confirmed we would not be entitled and our Award would cease in April.

nad1611

Okay, yes he is only working 3 months, does that change anything? Are you saying that we'd still be paid something. How do part years work. We definitely wouldn't be entitled if he was working the whole year as explained. Are you saying that the income will be based on 3 months of earned income(from work) plus any other income?

I did explain the scenario to WTC and was told we wouldn't be entitled which didn't come as a surprise because I resumed we wouldn't be. I'd appreciate your thoughts.

Scarla

I'm new here, so please forgive me if I have mis-understood, but as I see it you would be entitled to tax credits until July when your husband retires, It doesn't matter what he would have earnt in this tax year (2015/2016). Your award takes into account your joint income from 2014/2015, and payments will cease in July should you not be entitled further. So, should you renew as normal and then inform them in July that you will no longer be entitled/your husband stops work?

nad1611

Okay so I think we're back where we started. I'm correct in believing that we would not be entitled to WTC in this Tax year and that they shouldn't have cancelled my withdrawal. I probably should have started my post by saying that, the reason I rang in February was because I knew we weren't going to be entitled to WTC in this Tax year 15/16, because the only reason we were entitled to WTC 2014/15, was because my husband bought some additional pension bringing our income in effect within the threshold for WTC.

I wanted to avoid getting payments beyond April knowing as I did we wouldn't be entitled and we'd end up with an overpayment.

So basically what I set out to do, worked initially, but they have for some unknown reason cancelled my withdrawal. Guess I'll have to keep ringing to see if I get a chance to talk to someone.