CTC WTC i am stumped!! pls help

helpmeout_3

Hi there

New on here and looking for some advice.

In last tax year ( 2007-08) my wife had an income of £13000 per annum, i was self employed in first year and only made £1086 profit from business. We were receiving £122 each week from tc/wfc. We have 2 children aged 7 and 2.

My wife has now started a full time job 2 weeks ago and now earns £22000 per annum. I am looking to estimate my profit at £7000 for this tax year (2008-09).

I called the tax credits people and told them about our changes in income 2 weeks ago when my wife started her new job, they advised me that this has now been done and a new award would be sent out but it would not change much????????.

They have now started paying in £139 per week so i called them again and they said that was the new award.

THIS CANNOT BE RIGHT CAN ANYONE HELP AS I AM AT MY WITS END.

Thank You

mitchaa

Your £122 was obviously based on 06/07 earnings
Your £139 was based on 07/08 earnings

I take it you earned more in 06/07 than what you did in 07/08 hence the increase in benefits?

I'm sure there is a £25000 income disregard in the same year but you'll obviously see quite a drop next year for 09/10

They mess up things quite a bit though so dont be surprised if they overpay you and decide to take it back in arrears 1 day.

alwaysonthego_2

keep dates of your phone calls and send anything to them via recorded delivery just for back up

System

Your 2008-2009 award will be based solely on your actual income during the 2007-2008 tax year. You said that was £13000 + £1086 = £14086

You don't need to let them know of your estimated
2008-2009 income unless you think it is going to be £25000 or more than your £14086 which it isn't as you said it would be around £29000. This is well within the £25000 disregard so your payments of £139 are probably correct

What you need to do is contact TCO near the end of the tax year, say middle of March 2009 and tell them that your 2008-2009 income is around £29000 and that will ensure that the payments from April 2009 will be based on realistic 08/09 figures and will reduce and so prevent any overpayment occuring while TCO wait for you to complete your annual renewal.

helpmeout_3

Pam17 wrote: »

Your 2008-2009 award will be based solely on your actual income during the 2007-2008 tax year. You said that was £13000 + £1086 = £14086

You don't need to let them know of your estimated
2008-2009 income unless you think it is going to be £25000 or more than your £14086 which it isn't as you said it would be around £29000. This is well within the £25000 disregard so your payments of £139 are probably correct

What you need to do is contact TCO near the end of the tax year, say middle of March 2009 and tell them that your 2008-2009 income is around £29000 and that will ensure that the payments from April 2009 will be based on realistic 08/09 figures and will reduce and so prevent any overpayment occuring while TCO wait for you to complete your annual renewal.

thanks very much for this info this seems to have cleared it up, thanks again!!