Tax credit 90% repayment wanted knowbody can tell me why ?

sausagesurfer

Northern_Wanderer said:

For 2023-2024 child tax credits, your elements are likely:

£545 family element + 3x £3235 chile element = £10250 total elements

The income threshold for tax credit only claims is £18725, income over this is deducted by 41p per £1

On an income of £45000 - 18725 = £26275 over the threshold, this is multiplied by 41%  = £10772.75 deduction from award, as your award is £10250, this wipes out your award. Therefore you have been overpaid as you didn't qualify for tax credits and presumably didn't tell them about your change in income.

On an income of £38000 - 18725 = £19275 over the threshold, this is multiplied by 41%  = £7902.75 deduction from award, as your award is £10250, this gives an award of £2347.25.

Does that help you?

This makes sense so this means anybody earning over 45k with 3 children was not entitled to child tax credit ?
odd as now on UC which is worked out monthly seems to be almost the same approximate payments ?
but if this is correct and they way child tax credits works then i guess thats it . 

sausagesurfer

HMRC and DWP seem clueless on the phones 

poppy12345

sausagesurfer said:

sheramber said:

How long ago did you get notified of the overpayment as you have 3 months  to appeal it.

think it was may 24 and have been paying back around £155 a month since -
if were are not eligible i get it but we are now on UC 3 children on almost exactly the same as when we on TC earning more money now and this is worked out each month -
?

UC and Tax Credits are 2 completely different benefits. You can’t compare them both for this reason. UC entitlement is based on earnings received each monthly assessment period. 

Northern_Wanderer

Yamor said:

Assuming that you were entitled to the 30-hour element of WTC, but no disability elements, nor any childcare, then when your award was based on the previous year income of £38k, you would have expected to receive about £3.3k in tax credits over the 23-24 tax year.

With an actual income in 23-24 of £45k, actual entitlement would go down to about £1,460, and with an income of £47k, it would be about £640.

OP, the threshold if in reciept of working tax credits is £7455 for 2023-2024 tax year. So you would add up all your elements and use a similar calculation to what I wrote earlier but use the lower threshold of £7455. I can calculate it if you can list all elements in your award.

Northern_Wanderer

Icequeen1 said:

Northern_Wanderer said:

For 2023-2024 child tax credits, your elements are likely:

£545 family element + 3x £3235 chile element = £10250 total elements

The income threshold for tax credit only claims is £18725, income over this is deducted by 41p per £1

On an income of £45000 - 18725 = £26275 over the threshold, this is multiplied by 41%  = £10772.75 deduction from award, as your award is £10250, this wipes out your award. Therefore you have been overpaid as you didn't qualify for tax credits and presumably didn't tell them about your change in income.

On an income of £38000 - 18725 = £19275 over the threshold, this is multiplied by 41%  = £7902.75 deduction from award, as your award is £10250, this gives an award of £2347.25.

Does that help you?

The OP is working, so it isn't a CTC only claim so the joint threshold needs to be used and WTC elements included. Yamor has explained it on their post. 

Thye OP only mentioned child tax credits, that is why I used those figures. OP may have been working and not qualify for WTC. Those facts are not clear here.

Icequeen1

Northern_Wanderer said:

Icequeen1 said:

Northern_Wanderer said:

For 2023-2024 child tax credits, your elements are likely:

£545 family element + 3x £3235 chile element = £10250 total elements

The income threshold for tax credit only claims is £18725, income over this is deducted by 41p per £1

On an income of £45000 - 18725 = £26275 over the threshold, this is multiplied by 41%  = £10772.75 deduction from award, as your award is £10250, this wipes out your award. Therefore you have been overpaid as you didn't qualify for tax credits and presumably didn't tell them about your change in income.

On an income of £38000 - 18725 = £19275 over the threshold, this is multiplied by 41%  = £7902.75 deduction from award, as your award is £10250, this gives an award of £2347.25.

Does that help you?

The OP is working, so it isn't a CTC only claim so the joint threshold needs to be used and WTC elements included. Yamor has explained it on their post. 

Thye OP only mentioned child tax credits, that is why I used those figures. OP may have been working and not qualify for WTC. Those facts are not clear here.

Yes, the OP is probably only receiving payments of CTC, but usually people incorrectly assume they are not entitled to WTC if they aren't receiving any payments of WTC and use the CTC threshold which is why i mentioned it. Given the figures, most likely there must be WTC elements included.