Tax credits reduction help please

Asho1988

Hello, this is my first time writing on one of these so please bare with me.
I recently renewed my Tc with an extension because I didn't receive the first renewal pack. So I phoned HMRC and gave them my income which was £1200 less than my p60 as I had to make reductions for smp. So I thought if anything my payments would go up. Wrong. My payments have gone down by £150 a week which has left me with not even enough to cover my childcare costs. I'm really not sure why this is as nothing else has changed and all of the calculators say I should be getting what I was previously before I renewed.
When I phoned to discuss the guy on the phone wasnt very helpful and told me to wait for an award letter before I rang back. (I view my payments online). He also said that my estimated income for the year ahead is what I earned last year before my Smp reductions... but I didnt give that as an official estimate that's something that the operator must have put in. Not sure why!? Does anyone have any insight as to why my payments have drastically dropped? I honestly cant make ends meet on the new payment. . Any help or enlightenment would be very much appreciated. Many thanks!

[Deleted User]

No use guessing what you might get until you get the actual decision notice. The figures online could change until then.

calcotti

Asho1988 wrote: »

He also said that my estimated income for the year ahead is what I earned last year before my Smp reductions... but I didnt give that as an official estimate that's something that the operator must have put in. Not sure why!?

Whether or not this makes a difference will depend on which year they have used to calculate your award. As to why they have assumed this, it is usual to assume that pay will be the same as the previous year unless told otherwise. In your case if there was a change due to SMP last year it is unlikely that this would apply again in exactly the same way this year. If you have an estimate of what your earnings will be this year you can let them know.

Asho1988

It says on my online account "we have finished processing your renewal, you will receive an award notice within the next 2 weeks" so I am assuming its correct going off of that although I am praying it's not

Asho1988

If they are assuming the pay will be the same then shouldn't they have used my actual income figures for last year? Although I wont be on smp I did more hours after I went back so its likely my earnings could even be lower and I told the operator that on the phone. I really dont understand why they have estimate my income on my behalf with a figure I told them wouldn't be correct ��

busybee100

If I remember correctly from my daughters claim a few years ago, the first one they send out is based on last years figures then you ring them to adjust for this year, including the deduction for SMP.

sheramber

It might make things clearer if you give the income details for each year

18/19 - estimated figure used for tax credit payments.
18/19 - final income figure for tax credits.
19/20 - tax credit estimate figure
19/20 - your estimate figure

Asho1988

Sorry its not letting me quote posts on here for some reason.
I dont know what the estimate was for 18/19
Income after smp for 18/19 was £5475
Tax credits are saying my estimate 19/20 is £6675
I haven't a clue what my estimate will be for 19/20.
Which I told the operator this when she asked. The reason being is because I've just been off for an operation which will make my income go down, I'm having another one early next year. So I will get less income and have to make deductions for ssp I assume?
I've never even given them an estimated figure in the 10 years I've been getting tc since I had my first born. I'm so confused as to why they've used that figure.
And why my payments have gone down by £150 a week.!?

Asho1988

I also wont be able to do any over time at all this year due to no extra childcare help from family.

calcotti

Asho1988 wrote: »

Income after smp for 18/19 was £5475
Tax credits are saying my estimate 19/20 is £6675

And why my payments have gone down by £150 a week.!?

As the difference is less than £2,500 I would expect the award to be based on last year’s income not this year’s estimate.

However the figure used when your previous payments were calculated may be lower than your actual figure for 18/19. You would need to look at last year’s award letter to check this. What were your earnings in 17/18?

Asho1988

I've found 17/18 earnings which were £7462 minus smp which is £4762.
So 17/18 £4762
18/19 £5475
18/19 they have estimated £6675
Are those differences in amounts really enough to cut my payments by £150 per week?