tax credit 2016

tyler2027

Hello,


Can anyone advise on the following. I made a recent successful claim for tax credits, and finally got the paperwork. It details the payment dates and amounts for this financial year. It also has this paragraph:-


"Payments in 2016-2017....using the same income as 15/16, will be (amount) and paid on (starting date in april 2016, then 4 weekly). These are provisional payments taking into account of changes we can predict will affect the amount of your award"


The next financial years payments will be lower. I anticipated this, being aware of the July budget changes. The income is the same, the payments lower by 20% - therefore the logical conclusion is their predictions include the reduced allowance and increased taper rate.


But this is where I am confused. Based on the formulas on this site to calculate the reduction for next year....the loss predicted in this letter is a lot less than I calculated..... its about £650 compared to the £1500 I anticipated.


Now, either I have calculated it incorrectly (income of £11060, single 50 something, no children left at home, disabled - claim PIP standard rate).........or the DWP prediction incorporates an increase in the disability allowance? There's no calculation on the letter.


Does anyone know if this is something that has always been on peoples letters (its my first ever claim) and that I am attributing the reduced amount to the expected govt changes...when its actually something else - say an inbuilt buffer?


Thank you for any advice to help my confusion.


Ty

tyler2027

Thank you for the reply blondebubbles.


I work 20 hours pw, so I don't get the extra 30hrs+ allowance.


Ty

tyler2027

Your calculation affirms my guess on losing approx. £1500 ie roughly half.


So I'm still stumped at the HMRC prediction loss for 2016.....its 20%. A figure too low to reflect the budget changes.


I guess its a case of wait and see. Being a new claimant its not going to affect me too much...for a few months I will get a higher amount and make the most of it.


I feel for those people who are going to lose a lot more than me and have families to budget for. Reading the posts on this site its bad enough for those that know whats coming and at least can try to budget/plan in advance............then theres all those who have no idea they will be affected until D day


Thanks again blondebubbles


Ty

Icequeen99

I suspect HMRC have not yet updated their system yet. I think it is 'watch this space' for the next couple of months until it becomes clear what is happening.

IQ

sheramber

The Welfare Bill has only had its second reading in the House of Commons. It has not yet got Royal Assent so nothing will be updated until then.

You can see its progress here

http://services.parliament.uk/bills/2015-16/welfarereformandwork.html

Icequeen99

sheramber wrote: »

The Welfare Bill has only had its second reading in the House of Commons. It has not yet got Royal Assent so nothing will be updated until then.

You can see its progress here

http://services.parliament.uk/bills/2015-16/welfarereformandwork.html

The specific changes being talked about on this thread are the threshold and taper changes which are not in that Bill. They are just done by up-rating regulation as they are each year.

HMRC only do a couple of releases each year to update rates and thresholds.

IQ

Alice312

So basically icequeen the changes are going to happen no matter what?
Still can't believe how huge the changes are and that they can actually do it!

Icequeen99

Alice312 wrote: »

So basically icequeen the changes are going to happen no matter what?
Still can't believe how huge the changes are and that they can actually do it!

Seems that way, unless the Government have a sudden u-turn which is highly doubtful.

IQ

Alice312

Icequeen99 wrote: »

Seems that way, unless the Government have a sudden u-turn which is highly doubtful.

IQ

Thought as much.
Christ knows what they'll decide to chop next!

Bridgeton_Boy

It is a sorry state we are in that hard working people are getting their Tax credits money cut by the same bunch of spivs who have just been awarded an 11 % increase and had another bunch of their old crony pals sent to that overpaid unelected unaccountable house of lords. I just wish the folks in this country were not so apathetic in letting their government get way with such disgraceful double standards. It wouldnt happen in France.