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Lost my working tax

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mwryo26mwryo26 Forumite
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Received a letter today headed Provisional tax award, couldn't really make heads or tails of it so I checked my HMRC app on my phone and saw that my payments for working tax had disappeared, this then prompted me to go online to speak to an advisor who advised me that my claim had ended because I ended employment. Although true I did end employment I started a new job within days of leaving and advised HMRC of this. I was told that because my working tax had ended I couldn't reapply and need to apply for Universal Credits, I have filled out the calculator and I am not eligible for a single penny. I work full time and claim PIP because I have mental health problems.  My working tax credits were £120 every week so this is such a massive drop that I just feel like crying tbh, does anyone know what I can do or appeal this?
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  • edited 24 July at 6:14PM
    poppy12345poppy12345 Forumite
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    edited 24 July at 6:14PM
    Did you report the change that your employment had ended and then report the 2nd change when your new employment started? or did you report both the changes at the same time?
  • edited 24 July at 6:16PM
    calcotticalcotti Forumite
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    edited 24 July at 6:16PM
    This doesn’t sound right. When employment ended if you were actually in work immediately prior to the job ending you should have got a 4 week run on. They should have advised you if they were closing the claim. When did all this happen? If it’s within the last 30 days you can challenge the decision to close the claim https://www.gov.uk/tax-credits-appeals-complaints/disagree-with-a-tax-credits-decision

    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • mwryo26mwryo26 Forumite
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    I reported both changes online to an online chat advisor, I ended my Job on the 16th June and started my new Job on the 22nd. I have had no letter to tell me my claim has stopped. 
  • edited 24 July at 7:20PM
    calcotticalcotti Forumite
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    edited 24 July at 7:20PM
    When did you report the change? I suggest speaking to them again and asking if they have confirmed the decision to close the claim to you and find out the date of the decision. If the decision is confirmed request a Mandatory Reconsideration and put in all the facts. This needs to be done as quickly as possible but I think you need a writt3n decision before you can do the MR.

    Were you actually working up to the 16th June? As mentioned before when work ends you are entitled to a four week run on of Tax Credits beyond the date work ends.

    if ice queen sees this they may be able to add more as they are very knowledgeable about Tax Credits.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • mwryo26mwryo26 Forumite
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    I was on SSP up until the 16th, I have just spoken to another online advisor at HMRC and she took some details from me and said she would get me a new tax credit award notice sent out and I should get it in 2 weeks, not sure what this means. Can anyone advise?
  • edited 24 July at 7:36PM
    calcotticalcotti Forumite
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    edited 24 July at 7:36PM
    https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0114120
    A person is entitled to WTC if they .... have an offer of work which has been accepted at the date of the claim and the work is expected to start within seven days of making the claim 

    https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0124120

    If a person has a gap in their employment - for example, they are between two jobs - they will be treated as being in qualifying remunerative work, provided they have been engaged in qualifying remunerative work within the past seven days.
    https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0042120
    Where a change of circumstances results in the customer no longer being eligible for an award of tax credits
    • the award will be finalised
    • and
    • a Finalised Award Notice will automatically be issued to the customer.
    If WTC entitlement ends due to employment changes, for example total hours worked have dropped below 16 hours or employment ends, the customer .... will continue to receive Working Tax Credit (WTC) for four weeks starting from the day after entitlement ended. The customer will receive a letter explaining this.

    Unfortunately this last paragraph appears to indicate that although there should be a four week run on the entitlement actually ends on the day employment ends. I wasn’t aware of that. If that is the case you would be reliant on being entitled for 7 days before the second job started if you already hadn’t the job offer.

    This may mean that the decision to close your claim is correct.

    Tax Credits are not an award I am particularly familiar with so will be interested to hear what others think.

    What does the provisional award letter you referred to say?


    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • mwryo26mwryo26 Forumite
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    thankyou calcotti

  • edited 24 July at 8:25PM
    calcotticalcotti Forumite
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    edited 24 July at 8:25PM
    If your claim has definitely been closed you may be able to say you want to make a new claim relying on article 3 (5)(c) of the Welfare Reform Act 2012 (Commencement No. 32 and Savings and Transitional Provisions) Order 2019. https://www.legislation.gov.uk/uksi/2019/167/article/3
    HMRC will almost certainly refuse to facilitate this so you might have send a letter asking them to reconsider the decision to refuse a new claim. They will then almost certainly refuse that too and you can then appeal to the tribunal service.
    Discussion here https://www.rightsnet.org.uk/forums/viewthread/16002/
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • edited 24 July at 9:52PM
    calcotticalcotti Forumite
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    edited 24 July at 9:52PM
    sheramber said:
    That’s correct. The four week run on applies if actually in work as I stated. While on SSP one is treated as in work but that is not the same.
    Didn’t spot OP’s post about being on SSP while I was looking through the Tax Credits manual!
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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