Change in circumstances

Melziejane

I'm totally new to claiming so I hope I've explained this right.
I went on maternity leave in June 2015 (smp only) and my hubby was working part time. I was receiving child tax credits from June 2015. In December 2015 my hubby got a new, full time job earning more money which I immediately told HMRC about. Now they are saying we owe them £500. Can someone explain this to me? Also I haven't returned to work after my maternity leave so my earnings from April 2016 are £0. Will I be entitled to any tax credits now if I already owe them £500? Thank you.

Darksparkle

Without knowing your circumstances working hours, number of children, income for tax years 2014/15, 2015/16 and 2016/17 it's not possible to say if the overpayment is correct or if you are still entitled.

You can deduct the first £100 per week of SMP from your income.

Melziejane

Hi Darksparkle, thanks for replying.

2014/15 - no children
Me - 20k 40 hrs pw
Oh - £9328 25 hrs pw

2015/16 - 1 child as of July 15
Me - £8563 (was estimated at 12k when I made my initial claim)
Oh - £12,310 (oh got full time job in Dec 15)

2016/17
Me - £0
Oh - 18.5k (45 hrs pw)

Thanks for your help!

Darksparkle

So 2014/15 £29328 and 2015/16 £20,873.

At any point in 2015/16 did you give them an estimate of less than £20,873? If so the overpayment is likely to be correct.

Melziejane

Yes, as my hubby was in part time work when the initial claim was made I think the estimate was me 12k, oh £9328 but I notified hmrc straight away when he changed jobs in December.
Will I be entitled to anything now I'm not earning even if I owe £500?

Thanks again

Darksparkle

Melziejane wrote: »

Yes, as my hubby was in part time work when the initial claim was made I think the estimate was me 12k, oh £9328 but I notified hmrc straight away when he changed jobs in December.
Will I be entitled to anything now I'm not earning even if I owe £500?

Thanks again

Unfortunately that's the way the system works as its based on your income for the tax year rather than the period he earned more/less.

Yes you are still entitled now (I assume you've noticed them of the income for 2016/17?) but they will take some of it back to cover the overpayment.

Melziejane

Thank you.

Yes I told them about three weeks ago but haven't heard anything yet. Also just noticed that have reduced my child benefit from £20 a week to £8 a week, so that's all I am getting at the moment.

Darksparkle

Melziejane wrote: »

Thank you.

Yes I told them about three weeks ago but haven't heard anything yet. Also just noticed that have reduced my child benefit from £20 a week to £8 a week, so that's all I am getting at the moment.

The tax year only started on 6th, it wouldn't have been possible for them to update it 3 weeks ago.

Also child benefit is a set amount for your first child so it shouldn't be cut.

Melziejane

Ok that makes sense, they didn't say that on the phone. I'm best to phone them back then.

I normally get £80 paid into my bank but they've paid £30?

Darksparkle

Melziejane wrote: »

Ok that makes sense, they didn't say that on the phone. I'm best to phone them back then.

I normally get £80 paid into my bank but they've paid £30?

You'll need to call them and ask.

Melziejane

Apologies, my mistake. I've just looked again and the £30 is child tax credits, now I'm really confused lol as my last letter said I was entitled to nothing..ill phone them.

Thank you so much for all your help ��