Entitlement Advice

tomxlisa

Hello everyone!.

New here so hope this is in the correct place on the forum, was just wondering if anyone could give me some advice about working and tax credits, my other half earnt around (25k) last tax year, there was lots of extra shifts available than there usual is, anyways those shifts have gone and she is back down to her usual earnings of around 15k now for this tax year, I don't work currently it is just her, anyway as we used to get working and tax credits every month, we checked the bank yesterday and noticed that the amount has dropped considerably, we called them up and they said its cause it's based on what she earnt last year, they even said she is no longer entitled to working tax credits either just tax credits, so now she is back on the lower rate at work and our tax credits have been reduced and working tax credits stopped we are struggling a bit now, will this be the case for the rest of the year or is there any chance they will put it back up based on this years earnings or do we just have to bare this until next tax year?. Thanks for your advice.

nannytone_2

it will all be sorted out when you renew your claim.
they will set an initial award based on last years earnings, but then you can phone and give them an estimate for this current year and they will calculate a new award based on this information and the fisredards

tomxlisa

Thanks for your reply, I don't think we received a renewal form last year or if we did I don't think we had to fill anything in, I think it was done automatically, the advisor on the phone wasn't very helpful with her and just said your gonna get the lower amount cause of last years tax earnings, nothing about that it might go up this year once we have renewed and my other half even said to the advisor that her take home isn't half as much as it was last year and she said it don't matter as it goes on last years takings and not now, so basically we was left thinking this is how it's gonna be until next tax year until they can see she isn't earning as much, I guess this isn't the case though, I hope not?.

tomxlisa

Update:

Apparently our cuts are due to a overpayment last year so will this stay reduced now until it's paid or will it get sorted when the renewal happens, also I read online they can only take 25% off you, I am sure they are taking more than thst from us as we are down by about £500 a month, what's your advice on this I've told the other half to ring them back?.

tomxlisa

I don't think they have, she told them she won't be earning that much this year and can they increase the amouth we get and they said no as she earnt that much last year, we used to get about £820 a month that is child and working tax credits but now we have just had a payment for the month for £230, that is a huge drop surely more than 25% and they also say we are not entitled to working tax credits now, would this be because of last years salary?.

thorsoak

What are your circumstances? Are you SAH parent? If not, is there any reason why you can't seek work?

tomxlisa

Is that question relevant to the problem, my circumstances has nothing to do with the reduced rate as far as I'm aware, it's purely cause she earnt too much last year and was over paid, but yeah I do look after the kids when she is working etc.

tomxlisa

In simple terms then should this problem of ours be solved when we get our renewal, I've told her to ring them back up as well, might get a more helpful person next time as the last one wasn't very polite.

thorsoak

tomxlisa wrote: »

Is that question relevant to the problem, my circumstances has nothing to do with the reduced rate as far as I'm aware, it's purely cause she earnt too much last year and was over paid, but yeah I do look after the kids when she is working etc.

It could be relevant for the advice that we give you : had you been on a disability benefit for instance.

Are you getting NI credits for being responsible for child care? If not, you should register.

wiltsguy_2

if your OH earned £25k last year, but tax credits were paying an award based on £15k per annum then you have been overpaid on the £10k extra earned. This is how they claim it back by reducing your payments to cover the debt

tomxlisa

Thanks for your advice again, it is strange how we got over paid as she kept calling them up and telling them how much she was earning, I will get her to phone again next week and hopefully get it sorted out, I am guessing once she gives this years projective income the monthly money should go back up right, would she be entitled to working tax credits again as they said she wasn't cause of last years income, it is very strange they never sorted it out on the phone as she told them she isn't earning that much now and can the payments be increased and she told me they said no cause of last years earnings, but on here and from whet I've read they can be increased and i have also read that they can only take 25% from you for a over payment, they are taken about £500 a month off us which is surely more than 25%?.