Child Tax Credit - income higher than expected

Squirrel29

When I renewed my tax credits last year I quoted my expected 2007/8 income to be £20103 per annum. I have been receiving £104 per month CTC since August (it was £115, then £82 then jumped up following an appeal over my working hours).

However I won an appeal against my former employer for backpay and received £1200 before tax, this was actually backpay for 2006/7 but was paid in May 07. I have also earned a bit of overtime over Christmas and I think my annual salary will finish up at approximately £22500 by April.

My son is 16 soon and due to leave school this summer to go into full time employment so tax credits will finish this year for me. What is the threshhold for CTC of when it goes to minimum payment (I think £545?).

Tonight I tried to ring them to inform them of increase to expected salary but one of the security questions they asked is what year I first started receiving tax credits. I honestly couldn't remember and so they said I had not passed security so they could not deal with my account. Ahhhhhhh!

System

Check your last award notice. It should tell you how much your income is allowed to increase by this year before it affects your current award. Usually if your income change is less than £25000 it will not affect your award. However if your income was to rise by such an amount it would be wise to tell TCO asap before the end of the tax year to avoid them overpaying you in the next tax year whilst they wait for your annual declaration to come in.

BTW since the loss of the Child Benefit discs by HMRC the TCO have been told to operate a more vigorous security policy. That means they ask some impossible questions like -

when did you last tell us of a change in your circumstances?
when did you first apply for tax credits?
what is your telephone number?

as a result more people are failing security. What you can do though is visit your local HMRC enquiry centre (make an appointment), take 2 forms of ID (1 photographic) and they will look at your claim for you, answer any queries and provide you with some of those answers so you can pass security on the phone the next time.

Squirrel29

Thanks for that Pam, I can't see where it states on my award the amount my salary can go up by. It used to a few years ago when I was eligible to claim WTC too. Now it just states last year's salary and my expected salary.

I wish my money would increase by £25k! Will be lucky to get 2% and that will probably be after strike action :mad::mad::mad: