Tax credits stopped (and Housing Benefit)

moneywoes78

This is a little complex.....but I qualified as a staff nurse in February of this year, and have worked full time since. I rang HMRC and declared this, and sent in my renewal stating that my income for 2015/16 would be £10,000+ higher than the previous year.

History: Myself and my children were abandoned completely by my ex, no family nearby, and I just spent years working hard to get us back on track as he was the main earner; doing a degree full time (I got a 1st too!). It was SO HARD. Now I am wondering why I bothered. My ex pays no child maintenance as he puts all his self-employment earnings through his partners account, and thus has 'no income'. He has a huge online presence and gaming website, and came back from a holiday in LA this week I am told. Another kick in the teeth.

Anyway - I applied for housing benefit when I started work, and was told I earn too much to qualify. I was awarded tax credits which have allowed me to pay our rent. We have still been approx £250 a month worse off than when I was a student/unemployed, regardless.

I just received a letter stating that I have been overpaid as our tax credits were calculated on a wage of approx £6500, but projected earnings are above £20000.

As a result, tax credits have now been stopped. I now need to reapply for housing benefit as the entitledto website says we might get a top-up, but first have to wait for HMRC to calculate our overpayment. As such, we will be living on my wage plus child benefit for around the next 12-14 weeks or so. Our rent (expensive but cheap for the area) and bills take every penny of this. Not including food.

There is no way of me earning any more money, as I already work VERY long shifts full time and have children to look after. Unsurprisingly, I had a breakdown at the beginning of the year, and am on medication for anxiety and depression. With now no money for Christmas presents this year I am wondering why I bothered putting us through all this torture to end up worse off in every sense.

Utterly numb with shock at the moment. Anyone been through anything like this before?

pmlindyloo

moneywoes78 wrote: »

This is a little complex.....but I qualified as a staff nurse in February of this year, and have worked full time since. I rang HMRC and declared this, and sent in my renewal stating that my income for 2015/16 would be £10,000+ higher than the previous year.

History: Myself and my children were abandoned completely by my ex, no family nearby, and I just spent years working hard to get us back on track as he was the main earner; doing a degree full time (I got a 1st too!). It was SO HARD. Now I am wondering why I bothered. My ex pays no child maintenance as he puts all his self-employment earnings through his partners account, and thus has 'no income'. He has a huge online presence and gaming website, and came back from a holiday in LA this week I am told. Another kick in the teeth.

Anyway - I applied for housing benefit when I started work, and was told I earn too much to qualify. I was awarded tax credits which have allowed me to pay our rent. We have still been approx £250 a month worse off than when I was a student/unemployed, regardless.

I just received a letter stating that I have been overpaid as our tax credits were calculated on a wage of approx £6500, but projected earnings are above £20000.

As a result, tax credits have now been stopped. I now need to reapply for housing benefit as the entitledto website says we might get a top-up, but first have to wait for HMRC to calculate our overpayment. As such, we will be living on my wage plus child benefit for around the next 12-14 weeks or so. Our rent (expensive but cheap for the area) and bills take every penny of this. Not including food.

There is no way of me earning any more money, as I already work VERY long shifts full time and have children to look after. Unsurprisingly, I had a breakdown at the beginning of the year, and am on medication for anxiety and depression. With now no money for Christmas presents this year I am wondering why I bothered putting us through all this torture to end up worse off in every sense.

Utterly numb with shock at the moment. Anyone been through anything like this before?

I will leave blondbubbles to work out what your entitlement to tax credits might be this year and about the possible overpayment.

Unfortunately, as you know, your tax credits count as income for HB purposes so they cannot do a calculation until you know this.

So you are left with the prospect of getting by on your wage and CB.

A few ideas to help you through this time.

Have a thorough read of this website and look for money saving ideas.
Contact any creditors, explain the circumstances and ask for some 'breathing space' and time to pay.
Have a look at your utility bills and see if you are in credit. Ring and ask if you can have this as a cash payment.
Talk to the father of your children and ask for some money (should have put this first). If his children are going to suffer then he may 'cough up'.

Your priorities are:
your rent
your council tax
food for you and your children

Everything else can wait. Most creditors/utility companies/etc will try to help you if you let them know that you are struggling.
They get 'shirty' if you just stop paying without an explanation.

xylophone

You have no family nearby but do have family? Is there anyone who could assist you with an interest free loan for essentials for a few months?

Topcat1982

So, the father of your children is self employed but not declaring his income? That's illegal, you should report him to HMRC. Point them in the direction of his website as evidence.

Also, do you not qualify for child tax credits?

bloolagoon

You just need to tighten your belts though I 100% know how you feel. Can you not work overtime or do an extra shift?

it is possible (I had my part time nursing wages and CB ONLY) with no tax credits and a mortgage for 5 months whilst my OH was out of work.

Look into groups that offer cheap recipes and ideas on how to cut down your bills.

And most certainly let your Ex know your children are in need of support.

moneywoes78

Thank you all so much for all your replies.

Their father won't pay a penny and doesn't want to know them. As far as I'm aware, his gf has limited company and she banks all earnings (from both their ventures, which are in her name), he doesn't 'earn anything'.

Kids have one set of grandparents, who are retired working class.

Rent, council tax, gas, electricity, phone & travel to school/work (monthly DD's) takes away every penny I earn. Was in the process of saving to move to a cheaper area, but of course that won't be happening for a while now. I work 7am - 8pm sometimes more (up at 5am, out of house at 6am, home at 9pm) approx 4 days a week, and rely on others for childcare. I cannot physically work any more considering my home life - it would kill me. I already have health problems and am under a neurologist.

Blondebubbles my income for 2014/15 was £6500 approx. This tax year it will be £21500 approx. I have three children and no childcare costs at present.

NYM

I can't help with the TC overpayment issue nor offer you any advice that the others haven't already given, but I just wanted to say well done on getting a 1st ! That must have done your self-esteem the world of good.

moneywoes78

Yes, the overpayment is definitely for this year 2015-2016. I completed my update online AND called them when I first got the job, and that my earnings would go up by £10,000+ this year, and still this has happened. I spoke to them today confirming my children and income, and they said it would be calculated on estimated earnings of £21500 this tax year. I thought something was wrong when using entitledto earlier this year, but thought it was due to just starting the job, and also the reductions reflected in no longer getting any housing benefit.

moneywoes78

Apologies blondebubbles I wasn't making myself clear - they mean we're heading for overpayment and so they have stopped our tax credits whilst it is sort out. In the meantime though, I can't apply for the housing benefit top-up as I have to wait for their decision, then there is a 10-12 week backlog for housing benefit in our area. I'm guessing due to most people on my kind of income and below having to claim something due to absolutely extortionate rent prices.