How to stop tax credit payments

Markb06

How the hell do we stop getting tax credits?


I got a new job at the end of September and the pay varies from month to month as I get premiums for working different hours. In the last month I earned £1245 after tax and £1433 before tax. The month before last I earned £1227 after tax and £1420 before tax. Not much difference but this is just two examples. The lowest I could earn before tax is £1262.


Anyway as my wage is not set I told the tax credits this who took a estimate which I thought was to low. I said I would call them back as I needed to talk to talk to my partner about it.


We pay £80 a month for after school care to a registered child minder. We currently got £40 a month child tax credits. This was based on a wage of £15800 in my old job. At the thought of losing £10 a week we decided to cancel the tax credits as we didn't want to owe any money come the year end.


We rang up and said we would like to stop all tax credits and the advisor said a letter would be issued to confirm this and we left it at that.


We then had a reward notice come through telling us we was still getting £40 a month so I rang back up and said that we had cancelled and we got told we could not cancel before the the tax year end in April and we would still get these payments. We said we did not want the money. I said if I told you I got £17000 a year would this stop the payments. They said yes so thats what we did.


My partner is on £12500 a year working 25 hours a week.


Today I have just had another reward come through with my £17000 and my partners £12500 and we are still getting payments of £40 a month.


Our issue us we don't want the money as no doubt when all calculations are worked out we will end up owing it back next year and its sthis situation we do not want to be in.


Can anyone advise us what to do please?


Many thanks

Darksparkle

Tax credits is an annual award. As you have already signed up to this year you can't just stop claiming unless you actually stop being eligible e.g you separate from your partner.

Withdrawing your claim can't be done until the year end.

Without knowing your full circumstances it's impossible to say if your award is correct or not.

It would depend on number of children, childcare costs the exact household income for last year and estimate for this year because tax credits disregard the first £5000 of an increase in income.

From what you have said your income has only increased by £1,200.

If you don't want the money then you could put it into a savings account and get the interest on it. If you need to pay it back then you'll be able to, if you don't need to pay it back then give it to charity.