Renewal

karajane

My tax credit award last year changed as I reported a change in circumstances. It stated there was approx £2400 potential payment owing. I have renewed my tax credits on the phone todayand the only change is we earned £1426 more over the year than what our income was estimated. Does this mean we will now get that potential payment? If so when will we know/get paid? My OH is really excited about it but I am cautious as I know what they are like.

SuziQ

I'm sure someone will be along who knows the answer to this,I have given up with ctc as they seem to get my award wrong virtually every year and then demand thousands back!

I wouldn't get too excited though just in case,but really hope you get a very handy cheque!

MRS_TO_BE_2

Anyone know the answer to this? I think I'm owed about £800. Annoyed though as still no renewal issued and tax credits just say before end of July it will be issued.

mitchaa

karajane wrote: »

My tax credit award last year changed as I reported a change in circumstances. It stated there was approx £2400 potential payment owing. I have renewed my tax credits on the phone todayand the only change is we earned £1426 more over the year than what our income was estimated. Does this mean we will now get that potential payment? .

I dont understand that, you under estimated your income so earned more but yet think you are entitled to additional benefit?

For example..

Estimated earnings £15000
Actual earnings £16500

Then claim should be awarded on the £16500, not the £15000.

You would obviously receive a higher award for the lower amount?

So i cannot see how any money is owed? Surely during that year you have benefitted from this as you were being assessed on the £15k as opposed to the £16.5k you were actually earning.

The only way i can see anything owing is if it was the other way around. You said you were going to earn £15000, but only earned £13500. That scenario i assume would result in money being owed?

Well i think anyway.

SuziQ

I think the OP is saying that she originally was owed an amount,and although they have now said she earned more than they originally knew she still earned less than they originally tought so is still owed a (lesser) amount. Have just read that back and it seems to make no sense at all,but I know what I mean lol!

karajane

To clarify our circumstances changed last year, I informed TCO and told them my new income. My award was re-assessed, it came back with a potential payment. This was to stop overpayment in case of any further change in circumstance. However, with overtime I earned slightly more than I had estimated and have now given them the actual figure when I renewed. My question is what will now happen with the potential payment?

Elaine_Wilson

When I read your first post I interpreted it as meaning that your change in circumstances would mean that you would owe them £2,400 but that they would not collect this until after the end of the year.

Are you saying that the change in circumstances was that your income was reduced? I thought that they would have started paying you based on your estimate from the time you notified them.

Anyway, if they confirmed that they would owe you for the year and payments did not change then the net effect is that you will still be owed a repayment but, of course, it will now be reduced slightly because of the increase in your earnings.

How long ago did you give them the actual figure? You should receive any repayment as soon as it is processed but it appears they are a litttle behind again this year in dealing with the renewals. The mandarins in Whitehall do not seem to be able to grasp the concept that because the law says we must renew between April and July that they should expect an increase of work in that period.