How to check Tax Credits

Ponsienella

I apologise in advance for the formatting of my post. No matter what I try my formatting gets knocked out and this site doesn't seem to like my tab key.


My brother has received a letter entitled Final tax credits decision for 26/06/2015 to 05/04/2016 and I am wondering how I can check everything on it. (He started to claim WTC on 26 Jun 2015).

His income is correctly stated.
His individual status, the fact that he has a disability, receives Enhance Daily living component of PIP and has no qualifying children or childcare costs is correct.

It states he worked 16 hours a week yet he was actually on a phased return to work from 5th July 2016 and I did contact them each time his hours increased.
When he went off sick on 23rd October 2015 he had built up his hours to 22 hours per week and I did inform them of that. After that date until the end of the tax year he claimed SSP.

In hindsight I don't know whether I should have told HMRC when he became sick but I didn't.

He has now ceased his claim (11th May 2016 so in 2016/17 tax year) as he has had to claim ESA.

Does anyone know how they calculate WTC so that I can check the figures?

His elements are:
Basic from 26/06/2015 to 05/04/2016 (285 days) £1527.60
30-hour element from 26/06/2015 to 04/07/2016 (9 days) £19.98
1 disability element from 26/06/2015 to 05/04/2016 (285 days) £2314.20
1 severe disability element from 26/06/2015 to 05/04/2016 (285 days) £994.65
Total WTC elements £4856.43
Reduction due to your income £1669.40
Amount for the period £3187.03

He had previously been off sick in the prior tax year and when he returned he was given a 30 hour contract (although he wasn't claiming WTC at that time).
He was also off sick from 7th June 2015, returning on Sunday 5th July 2015.

Can anyone help me with this please?

Darksparkle

Why do you need to check their calculation? Provided the income and circumstances are correct, the calculation will be.

The dates don't appear to be correct for the 30hr element as we are not yet at July 2016, I assume you mean 2015? If so is it correct that he was working 30hrs at that time?

It would also be easier to explain how it works if you gave the 2014/15 income and 2015/16.

Ponsienella

Thanks Darksparkle,

Yes - I did mean July 2015. and no, he wasn't working 30 hours at that time so I probably need to go back and speak to HMRC about that.

I wasn't sure what they meant by checking the figures, whether it is just the info I had given that needed to be confirmed or whether they meant to check their figures too.


His income is as follows:

2014/15 income
Earnings £7,548
ESA £1,481
Pension £2920
Disregard £(300.00)
TOTAL £11,649

2015/16 income
Earnings £6,956
ESA £483
Pension £2,920
Disregard £(300)
TOTAL £10,059
TOTAL

Darksparkle

You're not expected to check the calculations, just the information used for them to complete the calculations.

When did his hours decrease?

Was the ESA income based or contributions based?

Ponsienella

Essentially my brother was off sick for much of the 2014/15 tax year and only returned to work on 9th March 2015.

At that time he was only working 8 hours per week on a phased return. He gradually built up his hours. When he started working 16 hours he cancelled his contribution-based ESA claim. He increased his hours until he was finally on 26 per week when he unfortunately became sick again.

When he claimed Tax Credits on 26th June 2015 he was off sick. He returned to work from sickness on 5th July 2015 and started on a phased return again.

HMRC were never told he was working 30 hours but that his contract was for 30 hours.