HMRC letter re tax credits

Spunge2509

Good evening

New member looking for some advise, came home from work tonight to a letter from hmrc saying my work place had informed them of a change to my income. My income has not changed in the last year when I have looked at the estimate form the years income they are saying they have it's almost 6000 above what my income will be. I called the tax credit help line and they said its an automatic letter due to a change in income.

Only possible thing I can think is over Xmas I was paid on the 23rd for 3 weeks (two of which as stated as holiday pay) could they be using this amount and assuming it's my new weekly pay ?

Has anyone had anything like this before ? The hmrc number on the is only open 8-4 and I work 8-5 so can't call them I am really worrying now as we struggle each week on my wages and this letter says my tax credits will go down and also I could face a fine as I did not inform them of a change bit there has not been a change.

What should I do ?


Thank you

restless6

I got same letter today as my income has gone up and I didn't tell them but I'm not fussed as they've just removed my WTC son I'm not too much overpaid
You can phone them in your lunch break

Anthear

Try this number for Tax Credits - 0345 300 3900 - it's open 8am to 8pm Mon to Fri and 8am to 4pm on Sat. Not open on Sunday.

If you have been telling them about changes, then you're ok, but do make sure the info you are giving them is correct. You should be able to give them a pretty good idea of how much you are going to earn by the end of March/beginning of April as only 3 more months to go to the end of the tax year.

Darksparkle

Just call them and give an updated estimate of your own.

As said, they are open until 8pm, not 4pm Mon-Fri and 8-4 on Saturday. Or have your partner call them (assuming you have one as you said we)

Spunge2509

Thanks for the replies my wife tried for over 2 hours today with no luck the helpline number on the letter was engaged. I tired the normal tax credits helpline and they said they couldn't help as it was computer generated letter and I can not give them a new estimate which I am finding very strange as its tax credit related and I know the figure they have is incorrect

zagfles

First off don't worry about a fine. You do not have to tell them of changes in income during a tax year, the only time you have to tell them your income is when you do your annual declaration and declare the previous year's income.

It's a good idea to tell them of income changes in year, to avoid overpayments, but you don't have to, therefore no fine, you have done nothing wrong. The worst that'll happen is an overpayment if your income does go up over £2500 from one year to the next.

Have you registered for a personal tax account? You can use that to give/update income estimates for the current year.

https://www.gov.uk/personal-tax-account

Spunge2509

Thanks for the reply

I have always told the tax credits about any changes within a week of the changes.

The part I can not get my head around is that the tax credit people can't help me as this came direct from hmrc and the 5 people I have spoken to on the tax credit helpline all had never seen this automatic adjust before and said they could not override the new estimate even though they agreed it did appear to be incorrect based on my weekly wage

I have a feeling as I can not get in touch with the correct helpline and I only have 7 days to challenge to new estimate they will run with it and I will lose out until I get my P60

Spunge2509

Quick update 2ND day of being on hold for hours with no answer and then another letter now asking for a our childcare information all payments made etc

Best part the letter is dated the 6th of Jan and in big bold letters it says they need all the information by the 4th of Jan or they will made a judgment based on what information they have which is nothing so they will set it as an over payment

We both work hard and are being treated like criminals for claiming what we are allowed it's a joke and very upsetting

Darksparkle

Spunge2509 wrote: »

Quick update 2ND day of being on hold for hours with no answer and then another letter now asking for a our childcare information all payments made etc

Best part the letter is dated the 6th of Jan and in big bold letters it says they need all the information by the 4th of Jan or they will made a judgment based on what information they have which is nothing so they will set it as an over payment

We both work hard and are being treated like criminals for claiming what we are allowed it's a joke and very upsetting

If you claim they have a right to ask you for evidence. In no way are they treating you like a criminal by doing so.

And as for the typo, I'm sure you've done it at some point. I know I certainly have.

zagfles

Darksparkle wrote: »

If you claim they have a right to ask you for evidence. In no way are they treating you like a criminal by doing so.

Depending on how the letter is phrased that's exactly what's they're doing. It's like the letters people get after they make legitimate deductions from their income on their renewal forms, such as pension gift aid etc where they basically say "you put xxx, our records say yyy, we will use yyy, you can raise a mandatory reconsideration if you think we're wrong"

In other words, we'll assume you're lying unless you appeal and prove you're not. Usually in a letter sent second class, posted a week or 2 after the date on the letter so arriving 2-3 weeks after the date, wanting a response within 4 weeks of the date of the letter (ie 1-2 weeks after reciept), usually in the middle of the summer holidays!

PS OP did you register for the online tax service? It's a lot quicker than waiting on the phone. Though if they want evidence of childcare you'll probably still need to send that by post.

Darksparkle

zagfles wrote: »

Depending on how the letter is phrased that's exactly what's they're doing. It's like the letters people get after they make legitimate deductions from their income on their renewal forms, such as pension gift aid etc where they basically say "you put xxx, our records say yyy, we will use yyy, you can raise a mandatory reconsideration if you think we're wrong"

In other words, we'll assume you're lying unless you appeal and prove you're not. Usually in a letter sent second class, posted a week or 2 after the date on the letter so arriving 2-3 weeks after the date, wanting a response within 4 weeks of the date of the letter (ie 1-2 weeks after reciept), usually in the middle of the summer holidays!

PS OP did you register for the online tax service? It's a lot quicker than waiting on the phone. Though if they want evidence of childcare you'll probably still need to send that by post.

Your example still doesn't suggest that they treat someone like a criminal. Just that there is a discrepancy and if HMRC info is wrong then provide evidence to show that.

I don't know any office that writes letters and posts them a week or two later. My letters go out the next working day. And of course letters will still go out during the summer holidays, they can't sit twiddling their thumbs for two months!