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Tax credits not paying out?

Hi, this is a friends problem, so the details may be a little hazy, but i'm hoping u can help.

Basically they had their first baby one year ago. 1 parent works, other stays at home with bubba. They live in local authority housing. They put in a claim for tax credits when baby was born, but they weren't paid at all until april this year. Since then they have been paid their entitlement of £100 per week.

This means from june 07 to april 08 they didn't recieve their tax credits and are owed about £4000. They were give a date at the beginning of may to recieve the money - it hasn't appeared!

They phone the tax credit people daily, and are told that its being proccessed.

Has anybody any knowledge of this scenario??

They have asked me to help, but i can't think what I can do - they are already badgering tc's everyday!

Ideas, please?

Vtmil xxx

Comments

  • furby-2003
    furby-2003 Posts: 733 Forumite
    Part of the Furniture 500 Posts
    im going through a case at the moment where from 2007-2008 my bank details were incorrect and payments were suspended the error was rectified in may 2008 but they now say i need to possibly open an appeal because my tax credits have been closed down from april 2008 onwards.
    Converted comper to MSE. Thank you for all your answers!
  • vtmil
    vtmil Posts: 282 Forumite
    thanks furby -2003 for that quick reply. Do you have to appeal yourself?

    They haven't said the claim has been closed or anything - they say they will pay, but that its being processed.

    Is their an ombudsmen for such problems. Who looks in to these problems?
  • LadyMorticia
    LadyMorticia Posts: 19,899 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I know this is slightly different but I'm waiting for a little back payment from Income Support that I was due at the end of April/early May and I haven't received it yet. I remember being owed some in January and it arrived in late February/early March.

    Sometimes it can take a while, and I only use what they say as a guide estimate.lol.

    xx
    2019 Wins
    1/25

    £2019 in 2019
    £10/£2019
  • vtmil
    vtmil Posts: 282 Forumite
    thanks LadyMorticia, perhaps its just a wait and see situation. Its just annoying. Really, you could say they have been waiting a year. I think thats really bad!
  • LadyMorticia
    LadyMorticia Posts: 19,899 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    vtmil wrote: »
    thanks LadyMorticia, perhaps its just a wait and see situation. Its just annoying. Really, you could say they have been waiting a year. I think thats really bad!

    I must admit, the first time I thought it had 1)Been lost in the post or 2)The postman had put it in the wrong letter box.

    I was so relieved when it turned up.

    xx
    2019 Wins
    1/25

    £2019 in 2019
    £10/£2019
  • mitchaa
    mitchaa Posts: 4,487 Forumite
    vtmil wrote: »
    Hi, this is a friends problem, so the details may be a little hazy, but i'm hoping u can help.

    Basically they had their first baby one year ago. 1 parent works, other stays at home with bubba. They live in local authority housing. They put in a claim for tax credits when baby was born, but they weren't paid at all until april this year. Since then they have been paid their entitlement of £100 per week.

    This means from june 07 to april 08 they didn't recieve their tax credits and are owed about £4000. They were give a date at the beginning of may to recieve the money - it hasn't appeared!

    They phone the tax credit people daily, and are told that its being proccessed.

    Has anybody any knowledge of this scenario??

    They have asked me to help, but i can't think what I can do - they are already badgering tc's everyday!

    Ideas, please?

    Vtmil xxx

    Where is the £4k derived from? There is only a 10 month period there? (Jun-Apr)

    Also, now they are getting £100pw which equates to an award of £5200pa?? I cant work that out with a single child on CTC unless the child is disabled?

    However max CTC they should have been awarded, if the parent in work is earning less than around £21k and the child is fit and well, ie not severely disabled, then the max they should have been awarded was

    £545 family element
    £545 baby element
    £1845 child element.

    Max entitlement for the year should have been £2935. However this is based on 12 months, they should have only been entitled to 10, so a quick calculation should have put their entitlement at (£2935/12x10 = £2445pa)

    So from my calculations, in CTC if they were entitled to full whack they should have got around £2445pa from Jun 07 to Apri 08.

    So £2445/43wks = £56.86pw.

    Then in April 2008, the threshold went upto £2085pa child, the same £545 family and in your friends case they will only receive 2/12 of the £545 baby element (You only get this upto baby is 1)

    This would have worked out at £2085+545+90 = £2720/52 = £52.30pw from April 08 to April 09.

    But they are getting £100pw which to me looks like some backdated on top?

    The above info is purely based on CTC and assuming that the baby is healthy and also assuming the max award of CTC due to low income (Around <£16k)
  • vtmil
    vtmil Posts: 282 Forumite
    hi mitchaa thanks for the sums!

    However, i believe anyway, the claim is base on wtc and ctc. i think £100 is about right, without any repayments. And tax credits have said they will pay them £4000 (i think the figure is just under this) anyway. its just not appeared!!!

    thanks for the replys - very much appreciated!!
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