Child tax credits 2023 increases

jane_doe

I have 3 children, all aged between 8 and 12. Last (tax) year, I was receiving child tax credits at a rate of about £177 per week. I was expecting an increase this year given that the child element has increased from 2935 to 3235 per child - so 3x £300 would be £900/year more, or about £17 per week. But I'm only actually receiving £3 per week more than I was. 

Entitled To's calculator suggested I was eligible for £180 per week last year (so quite close to what I was receiving). For this year their calculator suggests my entitlement is £197 per week. Both seem in line with the govt published figures of the full rates with no deductions based on my income. Playing with ET's calculator suggests my income would have to increase by about £10k per year before it gets high enough to start reducing my child tax credits.

I've logged into HMRC website, but the tax credits section doesn't show any of their calculations, just the weekly amounts. There's no change of circumstances, and no overpayments being deducted/clawed back as far as I'm aware. Any idea why the payment hasn't gone up in line with the 2023 increases? 

KxMx

Tax credits are paid in arrears, and the benefit increase happened on the 11th April.
So it's likely that your payment was x days at old date and y days at new rate. 

jane_doe

KxMx said:

Tax credits are paid in arrears, and the benefit increase happened on the 11th April.
So it's likely that your payment was x days at old date and y days at new rate. 

No, unfortunately it's not that. Payment on the 11th April was a few pence different, but today's was the new fixed amount going forward. HMRC website shows my next 8 payments, going through to 6th June, all for this same amount.

Jyana

You mention in your other thread last month that you are self-employed, did your year end profits show you earned above minimum wage for the whole year, and that you worked the correct hours, etc? I'm not 100% on all CTC rules but I know those two are important for claiming the full amounts if self-employed.

allison445

Mines has actually decreased by £1 a week I thought it was because you get a provisional amount until you renew and then the amount is recalculated

jane_doe

Jyana said:

You mention in your other thread last month that you are self-employed, did your year end profits show you earned above minimum wage for the whole year, and that you worked the correct hours, etc? I'm not 100% on all CTC rules but I know those two are important for claiming the full amounts if self-employed.

I'm not technically self employed but PAYE of my own limited company. So they'll have my PAYE figures to work from (which I don't think shows hours, just pay?). As I say, according to the Entitled To calculator, it would take a massive increase in income before my CTC should start getting reduced. So even if they've assumed my income has increased in line with min wage increase it still wouldn't explain the rate I'm receiving.

allison445 said:

Mines has actually decreased by £1 a week I thought it was because you get a provisional amount until you renew and then the amount is recalculated

It would only change when you renew if your circumstances have changed from what they have on record for you? The renewals process for tax credits is pretty streamlined the last few years - they just send out a letter asking you to report any change in circumstances online - if nothing has changed then you don't have to do anything at all, it just renews automatically on the same basis as previous year. 

allison445

allison445 said:

Mines has actually decreased by £1 a week I thought it was because you get a provisional amount until you renew and then the amount is recalculated

It would only change when you renew if your circumstances have changed from what they have on record for you? The renewals process for tax credits is pretty streamlined the last few years - they just send out a letter asking you to report any change in circumstances online - if nothing has changed then you don't have to do anything at all, it just renews automatically on the same basis as previous year. 

Until you renew regardless if it is automatic or your details have changed you receive provisional payments 

Provisional payments

So long as renewal papers are returned by the deadlines shown below, claims are treated as made for the new tax year and are backdated to 6 April.

While the renewal process is going on, HMRC will continue pay on the basis of the last known income and circumstances for the tax year just ended. These run-on payments are known technically as provisional payments.

Even with automatic renewals it can take a few weeks for new payment amounts to be recalculated

jane_doe

allison445 said:

allison445 said:

Mines has actually decreased by £1 a week I thought it was because you get a provisional amount until you renew and then the amount is recalculated

It would only change when you renew if your circumstances have changed from what they have on record for you? The renewals process for tax credits is pretty streamlined the last few years - they just send out a letter asking you to report any change in circumstances online - if nothing has changed then you don't have to do anything at all, it just renews automatically on the same basis as previous year. 

Until you renew regardless if it is automatic or your details have changed you receive provisional payments 

Provisional payments

So long as renewal papers are returned by the deadlines shown below, claims are treated as made for the new tax year and are backdated to 6 April.

While the renewal process is going on, HMRC will continue pay on the basis of the last known income and circumstances for the tax year just ended. These run-on payments are known technically as provisional payments.

Even with automatic renewals it can take a few weeks for new payment amounts to be recalculated

I know they're provisional payments. Last year (and probably the year before that too) my circumstances didn't change and so my provisonal payments were (presumably) correct and carried on at the same rate for the rest of the year. This year my circumstances haven't changed either, so I'm not expecting the provisonal payments to be based on anything other than my existing circumstances. And as I said earlier, HMRC would need to have assumed that my income had increased by about £10k before my CTC would get reduced, and there's nothing to suggest that's the case.

I've been told that I need to migrate to UC next month, but TC renewals aren't due until end of July, so they might not even have sent my renewal notice before I need to migrate. Obviously I want to make sure my TC payments are right so that my transitional protection is right...