too much tax credit????

born_free_4

HI All,

I'm wondering if someone can help me understand the tax credit system and I'm sure all this has been explained 1000s of times on this site, but I'm new!

My wife and I had our 1st baby back in August 07 and assumed as we were quite well paid in our jobs we wouldn't be entitled to any tax credits so didn't bother to apply.
However, I was made redundant in Feb and I am claiming JSA and my wife is still off work and receiving statutory maternity pay, so we've seen a big drop in our income!
I was advised by a friend to look into tax credits, so we applied using our earnings from 2006/07. In that year we had estimated a combined income of around £45,000 which we put on the form,I'm still waiting for the confirmation of these figures from the tax office but i'm confident they're fairly accurate. The lovely people at Tax Credits have since sent us back a break down quoting the figures we gave them and stating that we are entitled to over £7000, I am of course delighted if this is correct but i can't help worrying that there might be a mistake and we could be asked to pay it back (as we have heard so much about this in the media), so we are afraid to spend it!
We gave them a call to check if these payments would continue if I was to find a new job and my wife will also soon be returning to work, and the lady said this rate of payment would continue until april 2009 and would be reviewed then. but I'm still not convinced!
Could someone who understands this system please comment,

Thanks

hotblu

Hey born free,

NO NO NO, you are not entiled to that money at all!!! Maximum your entitled to this year is around £1000- and then £545 every year after that on your income. I can tell you now what you have done wrong because I have seen it done in error so many times before, when you filled out your application you have ticked that you recieve JSA (Inome Based)- which you dont. You recieve JSA (Contributions based). When TCO have calculated your entitlement the JSA (IB) marker has voided all household income. Phone them asap and remove the marker and do not spend the money as you are overpaid.

HTH

Hotblu

plzhelpmesave!

it is amazing how many people don't even want to apply for Tax credits in case they get overpaid! DH is on £32k and i recently went back to work. 2 kids in nursery and with tax credits i only have to pay £50 towards their costs a week. Tax credits can be brilliant - but like everyone else, i worry about whether we are bring overpaid or what will happen next year when they include my income in their calculations?

DaisyFlower

plzhelpmesave! wrote: »

it is amazing how many people don't even want to apply for Tax credits in case they get overpaid! DH is on £32k and i recently went back to work. 2 kids in nursery and with tax credits i only have to pay £50 towards their costs a week. Tax credits can be brilliant - but like everyone else, i worry about whether we are bring overpaid or what will happen next year when they include my income in their calculations?

On a salary of £32k for your SH alone I would have though only basic tax credits would be due and certainly no help with childcare. I would double check your award is correct and ensure your renewal has you both on the correct incomes etc.

Jules

To me this sounds about right. You have no income other than your JSA and your wifes SMP. There may also be a back pay in that figure as you would have been entitled to the Child Tax Credit from your baby was born (you get extra in the baby's 1st year).

Although they have used your earnings from a previous year, we are now into a new tax year and Tax Credits will use your current income of JSA and SMP to work out your current entitlement.

As soon as you get a new job or your wife goes back to work make sure that you tell them as your entitlement will definitely change and you only have a limited time to tell them.
I ring them constantly as our situation changes just to make sure I don't end up owing them money.
Go to www.entitledto.co.uk and input you figures and situation and it will tell you what you are entitled to. It's amazing what people are entitled to and don't claim.

Good Luck

born_free_4

when you filled out your application you have ticked that you recieve JSA (Inome Based)- which you dont. You recieve JSA (Contributions based). When TCO have calculated your entitlement the JSA (IB) marker has voided all household income. Phone them asap and remove the marker and do not spend the money as you are overpaid.

HTH

Hotblu[/quote]

Just phoned the TCO to advise them that I was claiming contributions based JSA and not income based (I don't think there was a box for that on the form?) I asked if this would make any difference to my entitlement but the lady on the phone didn't know, she would have to submit it for processing and we would get a letter in a few days! I don't know why the computer couldn't tell her straight away.

hotblu

born_free wrote: »

when you filled out your application you have ticked that you recieve JSA (Inome Based)- which you dont. You recieve JSA (Contributions based). When TCO have calculated your entitlement the JSA (IB) marker has voided all household income. Phone them asap and remove the marker and do not spend the money as you are overpaid.

HTH

Hotblu

Just phoned the TCO to advise them that I was claiming contributions based JSA and not income based (I don't think there was a box for that on the form?) I asked if this would make any difference to my entitlement but the lady on the phone didn't know, she would have to submit it for processing and we would get a letter in a few days! I don't know why the computer couldn't tell her straight away.[/quote]

Although the change is actioned straight away by the advisor, the new award isn't generated straight away, so you will have to wait for the new award. On the application pack it only ask's you to tick box for JSA (IB). If like yourself you are getting JSA(CB) then you put the amount in the income section under Social Security Benefits (Taxable)

Hotblu