help no tax credits paid into account

ALIBOBSY

I have 3 children including a baby born last November. Was only getting £16 per week due to our income and an old overpayment. The overpayment only has a small amount left which will be recovered from the next yr in full. I am on maternity from my part time work and am shortly going on unpaid leave so our income this year will be quite a lot lower than last year when I do my renewal. However the imediate problem is that the tax credit just didn't arrive at all this week. Do I need to ring them and check what is happening or ould it be that because of the overpayment it can't be system updated and has been reffered for the new payments to be manually worked out? If I will get it back next week fine, I would prefer not to have to sit on the phone all day trying to get through if I don't need to. Especially as I am sure some people who rely much more than we do on the CTC being paid are probably trying to call as well.
ali x

[Deleted User]

Do you have your most recent award notice? It should show what you are going to be paid provisionally for the 08/09 tax year.

If it shows payments there is a chance there has been a system glitch which has not set up the provisional 08/09 payments on the schedule.

The adviser needs to apply a workaround which only takes a day or two to sort out the schedule. If you are unsure give them a call and tell them ou have had no payment.

System

Just to add to this that subsonicoyote is correct re the technical glitch. We have noticed a significant number of claimants visiting our office because there is no schedule of payments for the new 08/09 tax year.

Technical staff are attempting workarounds to sort the matter out but these are failing in some cases and the awards are being referred to a separate section to be clerically maintained. This means payments would be calculated manually and giros paid rather that payments made via the BACS system. Hardship payments can be made at Enquiry Centres for those people who fulfil the relevant criteria.

ALIBOBSY

Ah ok thanks for that, will route out last years award notice and take a look.
ali x

ALIBOBSY

Well ended up alot more complicated than just a problem with 08/09 payments needing a workaround. Couldn't find last years award notice so waited one more week, still no cash so decided to ring them up.

Spoke to a guy who I can only describe as unhelpful and completely useless with customers lol. He was of the "computer says no" ilk. He repeatedly read out a set of estimated figures for next year and said, and all your weekly figure is being taken towards the overpayment left. I repeatedly asked why then last year did they pay me some money and take some for the overpayment, but not in the new tax year.
He simply could not understand what I was asking, I finally stated was he trying to say that on this years estimates we had hit a level at which we crossed some kind of threshold above which the whole amount is withheld until the last of the overpayment (233) is recovered? Erm yes he states. Ok I said, but i have had no paperwork will I get any, "erm no only your renewal which has not gone out yet".

I then said the figures will be incorrect anyway, as you already know I am on maternity leave and will shortly go onto unpaid leave. He said it would be sorted on my renewal. So I pointed out this leaves us with no benefit just when we need it most? At this point I decided I needed to speak to someone else and asked to speak to a supervisor. Off he went.

After ages on hold he came back and said the supervisor wouldn't speak to me as it was "pointless as she doesn't do processing". I was gobsmacked that my request was refused, but after I pointed this out he finally said he could take an estimated value for the next years earnings and pass the details on to the processing team.

Given that I am only getting SMP the first 100 of which is disregarded I worked out esimated earnings for me and excepted their estimate for my husband. At this point I asked if I would get some payment, but he couldn't tell me anything, and to be honest seemed to be trying to get rid of me.

Wasn't very happy but left things to see what would happen. Next thing I get 2 payments into the account on the saturday followed by a further payment on the usual payday. Finally got a new award notice yesterday. Even with the overpayment coming off going from £16 to £80 per week . This will really help us when I go onto unpaid leave and may in fact mean I can take more unpaid carear break. So all good in the end lol.
Thanks for all the help.
ali x

[Deleted User]

If you are taking unpaid leave remember to call up and end your work details as you will be classed as unemployed at this point for tax credit purposes.
So if you have any childcare details on your claim they will stop during the unpaid leave.

bigheadxx

This has happened to a lot of people, tax credits suddenly stopping this month. When I phoned them they said that "you are now only entitled to the basic award". As there was an overpayment previously the 548 pounds we are entitled to (per annum) will be used to repay this. This doesnt bother me but the fact that they didnt tell us and we havent even received a new award notice from them does.

Tax credits is a complete farce and waste of resources. What is the point in paying tax and then the government giving it back to you in what is at the end of the day a state benefit. It would be far simpler if personal allowances were increased so that you keep more of your income before giving it to the tax man. You then would have more money and not need to claim tax credits thus removing this bureaucratic shambles.

xxxMistyxxx

Tax credits are paid based on alot of different criterior, you need the system thats in place to calculate each individuals entitlement... increasing everyones allowances would hinder the Aims of Tax Credits... helping those in poverty (Especially children) etc.

I personally think WTC makes it easier for alot of disadvantaged people to go back into work.. older people, the disabled, people with children..

We all benefit from a good economy and if Tax Credits encourage people to work and therefore pay money back into society and help our economy then how can it be such a farce.

As far as I can see the only drawback is the system needs everyone to work together to make it work properly.

If you have a Change of Circumstances or there is anything your not sure about give them a ring & let them know.. it will save problems in the long run

bigheadxx

People would be encouraged back into work if they were allowed to keep more of the money that they earn before paying tax. Obviously just increasing personal allowances alone is not a solution but would be a positive factor. There would have to be enhancements for the lower paid and part time workers but the Tax Credits system has created poverty by overpaying people and then bringing them into debt. When somebody has a drop in income casued by an overpayment then they may well look to other credit providers thus increasing their debt liability further.

[Deleted User]

Discussions are meant to be in the discussions board. This board if for benefits advice not opinions of the benefits systems.

ALIBOBSY

subsoniccoyote wrote: »

If you are taking unpaid leave remember to call up and end your work details as you will be classed as unemployed at this point for tax credit purposes.
So if you have any childcare details on your claim they will stop during the unpaid leave.

Will this apply even though I am still employed albeit on unpaid maternity leave, to be followed by an unpaid carear break?
I assume if it does I would need to ring them in June when the SMP ends and my unpaid leave starts?
BTW no childcare as my mum looked after the kids part time whilst I worked, but she wasn't a registered child minder so nothing could be claimed.

Thanks for your help
ali x