ESA contrubution based and Child Tax Credits

Mark78

Hi Can anyone help me please?
My wife was made redundant in July 2016 and is now on contribution based ESA. We thought we might be entitled to child tax credit and HMRC said we were but then changed there mind as they calculated that the 3 months she was working in tax year 2016-2017 put us above the threshold and they had overpaid us! We now owe HMRC £1000.
Now the new Tax year of 2017-2018 is here we thought we would re-apply. We have done a quick child tax credit calculation (using the approved HMRC website) and it says we could be entitled to £470 a month! I'm very confused. My wages have stayed the same and I have a company car which i pay BIK and our savings are less than £4000. I do not want to go what we went through last year and end up with another over-payment. Im bascially asking will HMRC take into question that my wife is on a higher contribution based ESA before they overpay us?

Diary

Mark78 wrote: »

Hi Can anyone help me please?
My wife was made redundant in July 2016 and is now on contribution based ESA. We thought we might be entitled to child tax credit and HMRC said we were but then changed there mind as they calculated that the 3 months she was working in tax year 2016-2017 put us above the threshold and they had overpaid us! We now owe HMRC £1000.
Now the new Tax year of 2017-2018 is here we thought we would re-apply. We have done a quick child tax credit calculation (using the approved HMRC website) and it says we could be entitled to £470 a month! I'm very confused. My wages have stayed the same and I have a company car which i pay BIK and our savings are less than £4000. I do not want to go what we went through last year and end up with another over-payment. Im bascially asking will HMRC take into question that my wife is on a higher contribution based ESA before they overpay us?

What do you mean by 'a higher contribution based ESA'? Has she had an assessment already and been grouped?

Darksparkle

Tax credits don't just change their mind. Tax credits are based on your personal circumstances (and if you inform them of the correct circumstances).

Mark78

Diary wrote: »

What do you mean by 'a higher contribution based ESA'? Has she had an assessment already and been grouped?

yes she has been regrouped after a assesment

Mark78

Darksparkle wrote: »

Tax credits don't just change their mind. Tax credits are based on your personal circumstances (and if you inform them of the correct circumstances).

i used the term "changed there minds" as we told them everything up front and because it took so long to process they just stopped!

Caz3121

Mark78 wrote: »

We have done a quick child tax credit calculation (using the approved HMRC website) and it says we could be entitled to £470 a month! I'

Is there a chance that in section 5.1 you ticked the box for Income - based ESA?
It appears that if this box is ticked (which it should not be for Contributions based) then it ignores all other income and shows the maximum amount

You have not stated your income or number of children so cannot say what the correct figure should be but the entitlement tables are here
https://www.gov.uk/government/publications/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare

Mark78

Caz3121 wrote: »

Is there a chance that in section 5.1 you ticked the box for Income - based ESA?
It appears that if this box is ticked (which it should not be for Contributions based) then it ignores all other income and shows the maximum amount
You have not stated your income or number of children so cannot say what the correct figure should be but the entitlement tables are here

Hi Thanks I have unticked the box and done a recalculation and it says now £302.49 a month!.
My wages are £26945 and i have 2 children

nannytone_2

you need to add in your wife's ESA as well as this is also incomeme

Mark78

nannytone wrote: »

you need to add in your wife's ESA as well as this is also incomeme

I have put in my wifes contribution based esa and not put in either way it still says im entitled to something. The question is that I did all this last year, declared everything and because it took them so long to make up there mind i ended up owing them £1000!

nannytone_2

is the £28,945 including you wife's ESA or is her ESA in addition?

what income did you receive for 16/17 ( your income, your wife's income and any ESA paid during that year)

Mark78

nannytone wrote: »

is the £28,945 including you wife's ESA or is her ESA in addition?

what income did you receive for 16/17 ( your income, your wife's income and any ESA paid during that year)

My Salary is £26945 and her contribution based ESA is on top of that.
At a guess last years income2016/2017 was 26945 (my salary) £8000 (my wifes salary before redundancy) £3360 ESA contribution based