Reporting change of circumstances fiasco - Tax Credits

UKSBD

I just received my provisional tax credits statement for 2015/2016


In big red writing on the top it says I could be fined up to £300 if I don't report a change within 30 days.


After spending about 15 minutes waiting on the phone I'm then told I can't report any changes for 2015 2016 until I get my renewal pack (which could be end of June)


By the end of June it will be more like 90 days rather than 30.


Why is there so much emphasis on the letter to report changes within 30 days if it is impossible to do that?

Darksparkle

Do you mean your provisional award for this year, 2016/17?

Not sure what advice can really be given here, they are right. You could have reported any changes to 2015/16 during that tax year. Now we are in the new tax year you need to wait for the renewal to update last year's actual income. This is nothing new, it's the same every year.

You can however still update current changes to 2016/17. So for example you have a change in hours and income, you have 30 days to report that.

zagfles

What change do you want to report? There's only a limited list of changes you can be fined for not telling them about.

UKSBD

Darksparkle wrote: »

Do you mean your provisional award for this year, 2016/17?

No, 2015/16
I sent in a letter reporting the change and received a reply saying they couldn't amend the information yet.


Fair enough, but why then send a letter implying if I don't report a change within 30 days I could be fined?

UKSBD

zagfles wrote: »

What change do you want to report? There's only a limited list of changes you can be fined for not telling them about.

I reported extra other income that I received on 31st March.
Sent a letter reporting the change 2 or 3 days later (in same tax year)

NYM

UKSBD wrote: »

I reported extra other income that I received on 31st March.
Sent a letter reporting the change 2 or 3 days later (in same tax year)

Why did you feel the need to ring them if you'd notified them by post?
That letter is most likely a generic one and as you've notified them within the time scale it won't apply to you.

Darksparkle

If you sent the letter on 2nd or 3rd April it's highly unlikely it will have been received and auctioned before the end of the tax year. But if you called on 31st and updated a change, why did you need to write also? Did they not update the change when you called?

The letters are standard, they aren't written specifically for you or the change that you've made. As I said, it still applies to most changes with the exception of the previous year's income as that can only be done by the renewal.

I'd be calling to ask why you've had a provisional award for 2015/16. That shouldn't have happened.

You should only get a provisional award for 2015/16 until you do the renewal (which you would have done last year by end of July). You would have then got a final award for 2014/15 and an initial award for 2015/16 and amended awards for any subsequent changes to 2015/16.

You should only be getting provisional awards now for 2016/17 until you do this year's renewal.

UKSBD

NYM wrote: »

Why did you feel the need to ring them if you'd notified them by post?
That letter is most likely a generic one and as you've notified them within the time scale it won't apply to you.

Because about 2 weeks after receiving a reply saying they couldn't amend the information I then receive another letter saying if I don't make the changes within 30 days I could be fined £300.

zagfles

UKSBD wrote: »

I reported extra other income that I received on 31st March.
Sent a letter reporting the change 2 or 3 days later (in same tax year)

Don't worry about it. You don't have to tell them about income changes anyway, you just need to declare all your income when you do the renewal. Worst that'll happen is an overpayment which you'll need to pay back - definitely no fine.

UKSBD

Darksparkle wrote: »

If you sent the letter on 2nd or 3rd April it's highly unlikely it will have been received and auctioned before the end of the tax year. But if you called on 31st and updated a change, why did you need to write also? Did they not update the change when you called?

The letters are standard, they aren't written specifically for you or the change that you've made. As I said, it still applies to most changes with the exception of the previous year's income as that can only be done by the renewal.

I'd be calling to ask why you've had a provisional award for 2015/16. That shouldn't have happened.

You should only get a provisional award for 2015/16 until you do the renewal (which you would have done last year by end of July). You would have then got a final award for 2014/15 and an initial award for 2015/16 and amended awards for any subsequent changes to 2015/16.

You should only be getting provisional awards now for 2016/17 until you do this year's renewal.

I didn't ring them on 31st, that was the day I got the extra income.


I reported it, and changes for 2016/2017 in a letter I sent on 2nd or 3rd April.


I then received a reply saying they couldn't make amendments yet, they obviously did change something though as those changes are reflected in my 2016/2017 provisional statement.


Would I have received a 2015/2016 provisional because I reported another change about 2 months ago too?


It looks like this is just a timing thing and they send out generic letters that don't apply to people.


Bit of a pain though, 2 weeks after trying to report a change I get a letter threatening if I don't report it in 30 days I could be fined (but it's impossible to report the change).

UKSBD

zagfles wrote: »

Don't worry about it. You don't have to tell them about income changes anyway, you just need to declare all your income when you do the renewal. Worst that'll happen is an overpayment which you'll need to pay back - definitely no fine.

Yeah, I can see that now.


It's just down to the timing of the letters and reporting.


Maybe they need to change their generic letters so they are relevant and then we won't waste both ours and their time?