extra money from tax credits

mrs_angry

Hi there today, i noticed in my bank 3 extra payments from tax credits, i sent in my renewal form a few weeks ago and want to know if these payments are extra from april, as they have underpaid me for the year 2007-2008 and these payments dont seem very much!

on my calculation the tax credits people owe me about £1000 as they have been underpaying me by about £29 a week, but this payment only seems to account for an under payment from april 2008

what about my under payment for the whole of last year!

any answers! please!

kind regards in advance

jane

mitchaa

Tax credits are only backdated by a max 3 months.

mrs_angry

mitchaa wrote: »

Tax credits are only backdated by a max 3 months.

hi there thats only for a change in circumstances, mine is just because my income figure is lower than last year! in this case they usually pay all underpayments for the previous tax year

regards

mitchaa

mrs_angry wrote: »

hi there thats only for a change in circumstances, mine is just because my income figure is lower than last year! in this case they usually pay all underpayments for the previous tax year

regards

Are you sure? For example...

Apr 07-April 08....You earned £12000.

For April 08-April 09, you are assessed on this amount. However, you have a change in circumstance where you estimate this years earnings to drop to £8000, you are now assessed on £8000 so gain more tax credits immediately.

But why would they give you TC based on £8000 backdated for a year, when it should only be from April 08?

Or perhaps you can explain what you mean and why you think they are owe you over £1000?

sjaypink

mrs_angry wrote: »

Hi there today, i noticed in my bank 3 extra payments from tax credits, i sent in my renewal form a few weeks ago and want to know if these payments are extra from april, as they have underpaid me for the year 2007-2008 and these payments dont seem very much!

on my calculation the tax credits people owe me about £1000 as they have been underpaying me by about £29 a week, but this payment only seems to account for an under payment from april 2008

what about my under payment for the whole of last year!

any answers! please!

kind regards in advance

jane

yep ive had a few odd payments in the last couple of weeks, so have several friends. as yet no letters to explain them, so ill just wait and see.

if you want to find out urgently just ring them, although personally i cant be arsed, id rather deal with them via letter.

good luck x

sjaypink

mrs_angry wrote: »

hi there thats only for a change in circumstances, mine is just because my income figure is lower than last year! in this case they usually pay all underpayments for the previous tax year

regards

take it you mean you've finalised your 07/08 award which turned out less than you estimated/ or less than your 06/07 income which your 07/08 award was based on.

yeah ring them- let us know how you get on x

mrs_angry

mitchaa wrote: »

Are you sure? For example...

Apr 07-April 08....You earned £12000.

For April 08-April 09, you are assessed on this amount. However, you have a change in circumstance where you estimate this years earnings to drop to £8000, you are now assessed on £8000 so gain more tax credits immediately.

But why would they give you TC based on £8000 backdated for a year, when it should only be from April 08?

Or perhaps you can explain what you mean and why you think they are owe you over £1000?

tax credits paid us last year based on our income figure for the previous year, but when i put in what we actually earned on my renewal for this year it was very much less, this has resulted in tax credits paying us based on a different figure,They have been paying us £29 less each week for the last year, so i presumed that they would owe us that money for the whole of the last tax year

they have put this right for this tax year IE: paying from april the extra £29 but as i thought we have been being paid less tax credits because our figure was different and they state that that may result in you being underpaid you will recieve any underpayment for the previous tax year

i know a big drop like your example most probably is a change in circumstances where as ours is classed as an underpayment as you dont have to report a drop in your money during the tax year as they will make up any underpayments when your claim is renewed this year

thankyou very much for you help think i will ring them and sort it out

regards

mitchaa

Remember tax credits were increased from April 2008, so if you are receiving an extra £29pw since then, you cant assume that it was £29pw before then.

Ie

CTC went up from £1845 to £2085 an increase of £240pa per child.

So if you had 3 children, you would see an increase of £720pa over the year which equates to £13.85pw

This would obviously only be from April 08, not before.

So dont assume that the £29pw goes back fully before as a lot of the thresholds were changed in April, so it may be quite a bit less than the £29pw.

mrs_angry

Thanks very much for your replys, i get what your saying (i think)

have just been looking over all my figures and our income is £1061.00 less than what i declared for the tax year 2007-2008

tax credits put £235.57 in my bank today so i presume this is all money owed from april 08 this is where i got the £29 from!

as for whether im owed anything more, by your calculations id say no

ive been getting £76.57 a week and now i will be getting £104.00 a week so you could see where i got my confusion from!

kind regards from me

LYNRIK

Hi everyone im new to all this but was wondering if you could help.......
I recieved my final tax credits decisions form for 2007/2008 and the new ones for 2008-2009, it turns out that last year i was owed £958 in underpayments and i wont recieve a penny! my circumstances are i owe them money from 2006-2007(there fault as far as im concerened) so they say as i owe money they can keep the lot! can they??? since the overpayment started i have paid 25% of my payments back to them and will continue to do so this year (£1500 last year and £1600 this year) surely under there legislation they can only take 25% of any money i recieve? i was in a finacial mess last year and owe money to gas electricity etc so if i had that money i would have been so much better off, i did phone and moan that i thought the payments were low but got told each time that my payments are correct!!! im sorry if this doesnt make much sense but im soooooooo angry at the moment!!
Im sorry for going on and i hope someone can give me some sort of advice.
Thanks

sjaypink

hi, i dont know the ins and outs of this but i suspect even if you were entitled to it back it it would be huge hassle getting it. id try and look at it in a positive way and think at least now itl be paid back a lot quicker than you originally thought.
if you think it is definately their fault in the first place then you can appeal it.
if you are struggling to meet your day to day living expenses then you can ask them to review the amount you are paying back.
there are people on here who have a much better knowledge of how it works so re-post this question as a new thread and you'll get more answers.
good luck x