Underpayment due?

tannis

Hi

I usually leave these things to my better half to sort however...................a claim was made last year for Child tax credits and the previous years income (2013/2014) was circa £21K, shortly after i became unemployed and was for the remainder of the tax year (2014/2015) so actual income for that year was around £5K. It seems that my other half did not inform them of the drop in income for the current year (as it was). We are currently still awaiting our renewal pack for this year and i intend to get this corrected, i would assume that we would be due a hefty underpayment for the last tax year?

If anyone in the know could advise that would be great.

scotty1971

not too sure if you need to inform them within 6 weeks of a change of the circumstances,but i could be totally wrong

giddypenguin

You need to work at least 24 hours a week between you to qualify - did you do this? Otherwise it would be an overpayment

tannis

giddypenguin wrote: »

You need to work at least 24 hours a week between you to qualify - did you do this? Otherwise it would be an overpayment

Are you sure as i've never seen that requirement before?

Studebacher_Hoch

Working hours doesn't matter for Child Tax Credits, if your income was as low as you're suggesting you should get maximum CTC last tax year (your partner's taxable income is also included though) and you would add £2500 on to your assessed income as it's dropped by more than £2500.

If there was a working tax credit element also previously included in your claim then that would be subject to the hours rule.

You don't have to tell them about a drop of income during the year and any underpayment when they finalise the award should be paid as a lump sum. It would be seen as capital for housing benefit purposes.

tannis

Studebacher_Hoch wrote: »

Working hours doesn't matter for Child Tax Credits, if your income was as low as you're suggesting you should get maximum CTC last tax year (your partner's taxable income is also included though) and you would add £2500 on to your assessed income as it's dropped by more than £2500.

If there was a working tax credit element also previously included in your claim then that would be subject to the hours rule.

You don't have to tell them about a drop of income during the year and any underpayment when they finalise the award should be paid as a lump sum. It would be seen as capital for housing benefit purposes.

Thanks for the reply, my income was as low as stated and my partner was not working at the time either, at an estimate i would say we received around £500 in child tax credits last tax year.

In theory are you saying that we should receive a lump sum of the maximum award (whatever that would have been??) minus roughly the £500 we were paid?

Apologies for the questions but just trying to figure out what we may receive as a lump sum payment!

tannis

blondebubbles wrote: »

Did she inform them that you finished work?

If you were underpaid last tax year, it will be paid as a lump sum once the renewal has been completed.

No she didn't so it appears we were underpaid.

tannis

So after waiting 11 weeks for our award notice it turns up and they have used my income figures for 2013/14 despite it being clearly rectified on our online renewal......not happy at all and now going to have to sit on hold for God knows how long to get sorted, how long beyond that for our correct award notice who knows?????

Mensch

Overtime has been cut for TC advisers as nobody (well, very few) has been phoning the TC helpline after 6pm this week. Get in there before the news spreads!

tannis

One hour on hold and have now rectified their mistakes, now have to wait 11 days for corrected award notice, If nothing heard in that time then I have to contact them again....