Tax Credit Tax Years

Lionrampant

Hello, first time poster here.

I worked in Benefits for years and thought I had a decent knowledge of them, but the whole Tax Credit operation is a totally different beast to me. I am looking for some advice.

Last summer I took Voluntary Redundancy from DWP. My final working date was 30th June. The change was reported and I calculated my income for the 15/16 tax year to be 3 months at my normal salary. I also informed HMRC that I may well claim JSA(C) for 6 months, which subsequently I did not. My wife circumstances changed a couple of times during the year and she ended up working 30hpw whilst I became a house daddy.

We received a letter stating that our TCs were stopping and that we had to pay back an overpayment. This stated that my wife's earnings for 15/16 were approx £15k and mine were approx similar.

My calculations that I reported last year were based on my 12 month salary divided by 12 and multiplied by 3 (April, May and June) paydays. Which came out at approx (£6.5K gross).

Am I to assume that the £14K figure quoted on my review letter for 15/16 tax year is my actual earning plus my redundancy pay over the £30K threshold?

Will we be able to claim tax credits this year if it is just my wife working?

Many Thanks

Darksparkle

Do you not know how much your redundancy was?

What was your taxable pay on your P45? That's what you should have reported to HMRC as that should include your pay from April to when you finished work and any redundancy over £30,000.

What do you expect the household income to be this tax year and have you told them that figure?

Lionrampant

I reported the gross figure of the redundancy payment, at the time, but the operator I was speaking to was more interested in my projected earning for 15/16.
Our income as it stands at present for 16/17 will be my wife's earnings and ChB.
When I spoke to Tax Credits the other day I was asked for my P60 for 15/16, as I have left the Civil Service I had to phone Shared Services to raise a Service Request to get one sent to me.
I was told to phone back when that had arrived.

I am assuming that my renewal has been calculated using real time info that has downloaded to Tax Credits.

Darksparkle

From your post, you were made redundant in the 2015/16 tax year so the redundancy payment (over £30,000) should have been included in your 2015/16 projected earnings.

CHB isn't included for tax credits. You need to make sure they have your estimated household income for this tax year. Without knowing your circumstances and income it's impossible to answer whether you'll get tax credits this year.

You won't get a P60 for 2015/16 as you weren't employed at the end of the tax year, you should have been provided a P45 when you left.

Lionrampant

Having dug out my P45, it shows my pay from April to June 15 only, it has no mention of my 'over the threshold' redundancy payment. Bloke at HMRC still looking for my P60 for tax year 15/16.

My Taxable pay on P45 is £4600.68 but apparently the real time figure figure for the year is close to £15K. I have no way of knowing that if it is not on the P45 and I am not going to get a P60 as I no longer work.

Frustrated doesn't even come close.

Darksparkle

Didn't you get any paperwork when you were made redundancy telling you what your redundancy payment would be?

Was it paid aged you left? That might be why it's not on the P45.

densol_2

Lionrampant wrote: »

Having dug out my P45, it shows my pay from April to June 15 only, it has no mention of my 'over the threshold' redundancy payment. Bloke at HMRC still looking for my P60 for tax year 15/16.

My Taxable pay on P45 is £4600.68 but apparently the real time figure figure for the year is close to £15K. I have no way of knowing that if it is not on the P45 and I am not going to get a P60 as I no longer work.

Frustrated doesn't even come close.

HMRC did receive RTI about the subsequent payment at renewal stage as well as the P45.

Lionrampant

I reported the Gross figure which was outlined on my final Redundancy Package letter.

Lionrampant

That is what I assume has happened to me as well. However I am being asked repeatedly for a P60 when we try to renew after our claim has been closed due to RTI downloading in mid May.

Darksparkle

Lionrampant wrote: »

I reported the Gross figure which was outlined on my final Redundancy Package letter.

How much was the redundancy payment as per the letter?

Lionrampant

£40250 gross