Urgent help required regarding Child Tax Credits

TonyLisaP

Hi,

We have just been awarded our child tax credits which are worked out to £10 P.W
I lost my job at the end of January and am currently recieving a JSA for myself and spouse which works out to £94 PW and we get child benefit for our two children of £32 PW.

94
+32
+10
=136 pw

We cannot afford to live on this money, out utility bills alone take up most of this. I have spoken to the Tax credit people and they say this is worked out on my previous years earnings of £41,000. I have spoken to the Job Seekers processing people and they say that it cannot possibly be correct and referred me back to the tax credit people who again state that it is based on last years earnings and the fact that I am unemployed is irrelevant.

If anyone can offer any advise we would be most grateful.

Thanks

Tony and Lisa.

donnalove

i am not an expert but when my husband lost his job halfway through the year, we had to give tax credits a new estimate for the current year and they then paid us on that new income.
Although yes tax credits are based on previous years income they should now recalculate on the fact you are on jsa but they will ask for a new estimate for this year.
please be aware when you do give an estimate and claim for current year(as apposed to them using previous years). As you are lowering your income IF it was to go up ie:you become employed, you lose the disregard currently £25,000, and will be overpaid.

hth
donna

[Deleted User]

What type of JSA are you receiving? Income Based (IB) or Contributions Based (CB)? You need to let TCO know the start date if it is IB and they will recalculate your award accordingly and you should see a decent increase.
You need to work out your estimated income for the year out - if it is going to be less than the previous year your Tax Credits will increase, even if you are receiving CB JSA. If it is CB you also need to work out how much you have received as this is counted as a income for Tax Credit purposes.

TonyLisaP

subsoniccoyote wrote: »

What type of JSA are you receiving? Income Based (IB) or Contributions Based (CB)? You need to let TCO know the start date if it is IB and they will recalculate your award accordingly and you should see a decent increase.
You need to work out your estimated income for the year out - if it is going to be less than the previous year your Tax Credits will increase, even if you are receiving CB JSA. If it is CB you also need to work out how much you have received as this is counted as a income for Tax Credit purposes.

We are on income based, no one at the tax office has asked for an estimate of our years income, should I phone them again and ask why not?

[Deleted User]

No point in asking why not, just tell them to take your estimate - if they tell you to wait until you receive you annual declaration you can demand they put it though as a "correction" instead of a "change of circumstance".

Also give them the date your JSA started incase they dont have it - Job Centre dont inform them automatically, you need to do this.

TonyLisaP

Thanks

Will call them tomorrow.