Tax credit in year finalisation.

gremlinimon

Thank you for advice beforehand. 

My family was recieving Child tax credit and working tax credit at the start of this tax year as my husband was the one working and earning minimal salary. However In October we made a move to different city that meant he stopped working, however I gained employment that tripled our monthly  income. 
Naturally we are not in need of tax credits anymore, which we are happy about and I notified them off our changes straight away. As we did move into UC area, I though it will triggere migration into UC so  we will just get in the year finalisation of tax credits, be determined not to need any more assistance and that would be the end it. However we have since recieved letter stating payments are stopping (which is fine of course) and that we will be having to pay back everything we recieved this tax year once the tax year ends (what we recieved while being on minimal salary). 
While I understand they consider whole year income, I can't help feeling penalised for bettering our life and getting off benefits.

I suppose what I am asking is there no way we can be finalised mid year? Has anyone had similar situation?
Of course if it comes to it, we will pay it all back.

KatrinaWaves

Tax credits are based on yearly income, and as you talk about a very large income of triple your normal monthly, then it appears you no longer qualify based on the letter. You have not been penalised for getting a job, surely having triple your old income is a big step up, and if/when your husband gets a job you will be laughing.

gremlinimon

KatrinaWaves said:

Tax credits are based on yearly income, and as you talk about a very large income of triple your normal monthly, then it appears you no longer qualify based on the letter. You have not been penalised for getting a job, surely having triple your old income is a big step up, and if/when your husband gets a job you will be laughing.

I absolutely understand I do not qualify now- I am happy not to recieve anything anymore. We worked hard to get to this point and it was never our goal to be on benefits long term- just to tide us over the hard patch really while we worked on our goal- that we have achieved now.
Our income is up but 2000 in debt isn't really how one dreams to start a new, hopefully better patch of life.

KatrinaWaves

gremlinimon said:

KatrinaWaves said:

Tax credits are based on yearly income, and as you talk about a very large income of triple your normal monthly, then it appears you no longer qualify based on the letter. You have not been penalised for getting a job, surely having triple your old income is a big step up, and if/when your husband gets a job you will be laughing.

I absolutely understand I do not qualify now- I am happy not to recieve anything anymore. We worked hard to get to this point and it was never our goal to be on benefits long term- just to tide us over the hard patch really while we worked on our goal- that we have achieved now.
Our income is up but 2000 in debt isn't really how one dreams to start a new, hopefully better patch of life.

That is simply how tax credits work. In some ways they are more generous than UC, and in some ways they are not. 

Icequeen1

gremlinimon said:

Thank you for advice beforehand. 

My family was recieving Child tax credit and working tax credit at the start of this tax year as my husband was the one working and earning minimal salary. However In October we made a move to different city that meant he stopped working, however I gained employment that tripled our monthly  income. 
Naturally we are not in need of tax credits anymore, which we are happy about and I notified them off our changes straight away. As we did move into UC area, I though it will triggere migration into UC so  we will just get in the year finalisation of tax credits, be determined not to need any more assistance and that would be the end it. However we have since recieved letter stating payments are stopping (which is fine of course) and that we will be having to pay back everything we recieved this tax year once the tax year ends (what we recieved while being on minimal salary). 
While I understand they consider whole year income, I can't help feeling penalised for bettering our life and getting off benefits.

I suppose what I am asking is there no way we can be finalised mid year? Has anyone had similar situation?
Of course if it comes to it, we will pay it all back.

It doesn't sound like your claim has ended - they have just dealt with your income change. Your claim will just continue as a nill award. 
The only way to end your claim and trigger in year finalisation would be to claim UC - but that obviously comes with issues in itself and the debt will then pass to DWP even you don't get any UC. In-year finalisation can create overpayments of itself so i would think very carefully and ensure you fully understand the outcome if you think about trying to claim UC. 

buckbeak1

Hi what was your outcome on this?? I am going to come off working tax credits and child tax credits in the summer (more work opportunities and no longer want to claim) but I’m so scared that I’ll have to repay the money between April and the summer which is thousands and I wouldn’t be able to afford it! Feel like I’m really trying to come off benefits - so from a few things I’ve read do they allow you to make £2,500 more than the amount you earn the year before?? 

I’m not sure if I should transfer to universal credits then stop or stop and do no more than 10 hours overtime a month between summer and April ?
And just scrape by until next April!? 

I don’t want to owe thousands, I’m a single mum of a 17year old. So confused! At the moment I work 23 hours a week earning only £9.50 , it’s so unfair how they do this as I’m too scared to earn money incase I owe thousands back 😭😢 please help! X