Finishing working tax credit help

cazzanne

Hi, hope someone can guide me on this.
I am self employed but due to illness unable to carry on, I informed tax credits and was told about the 28 weeks, had the month run on after telling them I will not be returning to work for the foreseeable future. Last years figures given to them.
The problem I have now is from this new tax year until mid June they were paying me (including the run on). They have not sent me a final figure for last year but have sent me a proposed figure for the new tax year only for April through to mid June when I stopped altogether and it is estimating that I will owe them. They say that is what I will owe April 2017 if nothing changes.
So, the question I have is I want rid of this altogether if I get my accounts done for just that period and let them know will they be able to finalise my credits or do I have to wait until April?
Guidance appreciated.

Darksparkle

You can't give the actual income for this tax year until the tax year has ended as you won't know for sure that you won't receive any taxable income or benefits.

cazzanne

I understand about the full tax year.
I cannot get my head around the fact that I no longer claim working tax credit as of mid June of this year I finished completely.

Are you saying that whatever income I get for the full tax year will be divided by 356 days and then multiplied by the 72 days which took me over the new tax year? Is that why I have to wait until the end of the tax year? In which case I may as well leave the accounts until the end of the year and let the business go at the same time.

Darksparkle

No, tax credits is based on what you earn in the full tax year. It's not split into when you claim and don't claim.

So even if you only claim until June, any money you earn after that will be taken into account.

So you need to wait until the end of the year because that's then only way you can confirm your total taxable income for the year.

You can do your accounts if you wish but that doesn't mean you won't have any further taxable income in this tax year.

Icequeen99

cazzanne wrote: »

I understand about the full tax year.
I cannot get my head around the fact that I no longer claim working tax credit as of mid June of this year I finished completely.

Are you saying that whatever income I get for the full tax year will be divided by 356 days and then multiplied by the 72 days which took me over the new tax year? Is that why I have to wait until the end of the tax year? In which case I may as well leave the accounts until the end of the year and let the business go at the same time.

Yes, that is exactly how it works. So any income you receive after the claim has ended can impact on the amount awarded for those 72 days.

Edited to add: The only exception to this is if someone claims Universal credit in the same tax year as the tax credit claim ends. In that case, HMRC have the power to finalise the claim at the point you make the UC claim.

IQ

cazzanne

Can I ask another question please.
Should I have had my final figures from them for the last tax year.
I have been and continue to be very ill this knowledge has really worried me I have to say I do not want any debt.

Darksparkle

cazzanne wrote: »

Can I ask another question please.
Should I have had my final figures from them for the last tax year.
I have been and continue to be very ill this knowledge has really worried me I have to say I do not want any debt.

Have you completed your renewal? If so when?

cazzanne

This years provisional review came in May they organised it once I rang with last years figures in April.

Darksparkle

cazzanne wrote: »

This years provisional review came in May they organised it once I rang with last years figures in April.

A provisional award is different to a renewal form.

If you have completed the renewal you should have heard back within 8 weeks. If not you'll need to call them to progress chase.