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  • FIRST POST
    • Former MSE Wendy
    • By Former MSE Wendy 21st Jul 09, 12:45 PM
    • 868Posts
    • 1,782Thanks
    Former MSE Wendy
    Tax Credit Briefing discussion
    • #1
    • 21st Jul 09, 12:45 PM
    Tax Credit Briefing discussion 21st Jul 09 at 12:45 PM


    This is to specifically discuss the


    ... just click 'post reply' to discuss or comment.
    Last edited by MSE Researcher; 15-06-2010 at 1:34 PM.
Page 3
  • subsoniccoyote
    Subsoniccoyote

    On which page of the guidance notice is the 3 months backdating rule mentioned?

    The 3 month rule is not on the new guidance pack as it has been simplified due to people complaining there was too much information to digest/understand (not sure why people moaned there was too much but they did). However your award notice and renewal pack should tell you to notify TCO of any changes as soon as they happen. You are normally advised on the documentation to notify within 1 month. The guidance (TC600 notes) does, however, state to declare your circumstances and advises you of the information required if you do pay childcare costs.

    Surely the July deadline declaration relates to the whole of the previous tax year which covers the period 16 to 4 months ago i.e. automatically outside the 3 month backdating rule.

    You should report changes as they happen and not wait until your renewal to make the changes. This is a common error by claimants as they do not read all of the information sent to them.

    So what is the purpose of the declaration if it falls outside the backdating limit?

    As explained, it is mainly to declare your income but TCO also want to make sure you have been keeping them up to date with your circumstances.

    If income can be declared up to Jan 31st following the tax year why not 'expenditure'?

    If you are talking about the childcare costs it because there is the 3 month backdating rule. The self assessment deadline is 31st January and is the reson why there is such a long period of time. TCO cannot expect someone who is self employed to have their actual profit figures 6 months before their deadline. [/QUOTE]
    • Stabilo
    • By Stabilo 27th Sep 09, 11:08 AM
    • 441 Posts
    • 85 Thanks
    Stabilo
    Claiming childcare costs
    But childcare costs can only be claimed if your income is below a certain level so surely you need to know the income level (as declared by the July & Jan deadlines) before you know if the childcare costs can be reclaimed?
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  • subsoniccoyote
    But childcare costs can only be claimed if your income is below a certain level so surely you need to know the income level (as declared by the July & Jan deadlines) before you know if the childcare costs can be reclaimed?
    Originally posted by Stabilo
    This is incorrect. The amount you may be awarded is based on your income but you should still declare the costs to TCO straight away.

    They cannot calculate your correct entitlement without knowing the exact circumstances.

    If you have current childcare costs make sure you have added them as you may get an increase in your payments which would be backdated for the 3 months.
  • lalaloulou
    What do I do? The tax credit owed me money (4127) and took out the money they owed me before they put it into account leaving me overdrawn by 4127. Following day they put that amount into my account but this then cancelled out the overdrawn amount and therefore left me with nothing! I have contacted them but its showing on the screen at tax credit as its been accepted by the bank!
    Help me!!!
    • KevinG
    • By KevinG 21st Nov 09, 7:34 AM
    • 1,582 Posts
    • 4,653 Thanks
    KevinG
    What do I do? The tax credit owed me money (4127) and took out the money they owed me before they put it into account leaving me overdrawn by 4127. Following day they put that amount into my account but this then cancelled out the overdrawn amount and therefore left me with nothing! I have contacted them but its showing on the screen at tax credit as its been accepted by the bank!
    Help me!!!
    Originally posted by lalaloulou
    Do the Tax Credit people have a Direct Debit mandate on your account? If not how did they take money out of it? Contact your bank and let them know what happened. I'm surprised they processed the payment - I'd be livid if my bank put through a payment that took me that much overdrawn! Get evidence of what happened, e.g. a statement then contact Tax Credits again and ask them to sort it out pronto and make good any losses you have incurred. It sounds like a pure !!!!-up so I really can't see why there should be any issue with this.

    P.S. I'm not sure why you tacked this on the end of this thread - it would have been more likely to get noticed if you had started a new thread.
  • subsoniccoyote
    Tax Credits cannot just take money from your account. They may only recall uncleared funds.

    If they release a high value payment it may be recalled before it is due to clear in your account to verify it is correct and you are not receiving the money in error.

    With some banks it causes a problem as they see the recall as a withdrawal. So if the payment hasnt cleared yet and the bank sees a withdrawal they will charge you for being overdrawn.

    The best advice would be to contact your bank to find out why this happened and to find out if the charges would be waived as it was a recall of money waiting to clear, not an additional transaction and you had no control of it whatosoever.

    I would also contact TCO to make a complaint as you are being told that the amount has been paid but this cannot be the case if it was recalled. The payment screen will show it has been paid but if the adviser was to check your notes there would be a note from the payment section stating that the large amount was recalled to be verified. The adviser would then need to ask you for additional information (normally your income from last year and a current year estimate) in irder to send a referral to the payments section in order to verify the payment.
    Last edited by subsoniccoyote; 21-11-2009 at 11:48 AM.
    • stphnstevey
    • By stphnstevey 1st Jan 10, 10:27 PM
    • 3,115 Posts
    • 503 Thanks
    stphnstevey
    Do dividends count as income?
  • subsoniccoyote
    Do dividends count as income?
    Originally posted by stphnstevey
    Yes. They come under the "other income" section.
    • KevinG
    • By KevinG 3rd Jan 10, 7:22 AM
    • 1,582 Posts
    • 4,653 Thanks
    KevinG
    Yes. They come under the "other income" section.
    Originally posted by subsoniccoyote
    Unless they are received in an ISA, in which case they are not taxable so AFAIK do not need to be declared for Tax Credits.
  • subsoniccoyote
    I answered this in the other thread with the following links attached.

    The second one shows clearly not to include tax exempt investment income.

    http://www.hmrc.gov.uk/taxcredits/st...her-income.htm

    http://www.hmrc.gov.uk/forms/tc600-notes.pdf section 5.6
    • ikr2
    • By ikr2 3rd Feb 10, 12:50 PM
    • 147 Posts
    • 26 Thanks
    ikr2
    Income
    My employer deducts my contribution (about 7%) to the council's pension scheme before I get my "net" pay. This is not the employer's contribution - it is the employee's contribution to the pension.

    Do I include this pension contribution in the income I report on my Child Tax Credit claim?
    • KevinG
    • By KevinG 3rd Feb 10, 6:47 PM
    • 1,582 Posts
    • 4,653 Thanks
    KevinG
    My employer deducts my contribution (about 7%) to the council's pension scheme before I get my "net" pay. This is not the employer's contribution - it is the employee's contribution to the pension.

    Do I include this pension contribution in the income I report on my Child Tax Credit claim?
    Originally posted by ikr2
    Normally no, because in a company scheme the contribution is deducted from your pay before tax is calculated (i.e. you get tax relief on the contribution) and it's your taxable pay that counts for Tax Credits purposes.
  • sam.ali
    can anyone tell me if i start claiming jobseekers allowance as i am searching for employment do i need to notify TCO? thanks
  • subsoniccoyote
    can anyone tell me if i start claiming jobseekers allowance as i am searching for employment do i need to notify TCO? thanks
    Originally posted by sam.ali
    Yes you do.
    • wildthing01
    • By wildthing01 5th Feb 10, 1:56 PM
    • 328 Posts
    • 2,237 Thanks
    wildthing01
    would anyone have any idea why my child tax credits were roughly halved this year, despite me having had a second child, and our family income not changing significantly? i am hopeless at maths etc, so can't work it out myself, and when i rang the tax credit people, the woman on the phone sounded as though she had less of a clue than me!!!
  • subsoniccoyote
    would anyone have any idea why my child tax credits were roughly halved this year, despite me having had a second child, and our family income not changing significantly? i am hopeless at maths etc, so can't work it out myself, and when i rang the tax credit people, the woman on the phone sounded as though she had less of a clue than me!!!
    Originally posted by wildthing01
    Has your youngest child reached 1 year old?

    You lose the baby element when the child reaches 1 year old.

    The baby element is the same amount as the family element - approx 10 p/w each. So in the first year you would have around 20 p/w then reducing to 10 p/w after a year.
  • Braith
    Claiming as a couple, I don't work now, help!!
    Hi, me and my partner have just tried to claim tax credits. I am no longer working. They have said that we were earning too much from 2008-2009, but I probably will have earned too much in 2009-2010.

    I am not working now though and won't be for a year, so will we be able to claim anything as I will not be earning this year, or will they base it on last year?

    I am so confused!!! Help!!!
  • wkd
    will it affect my tax credits??
    Hi im a single parent who works and earns under 25k, as i have been struggling with my morgagerepayments recently i have now taken in a tenant to help with the costs at 70 a week, im wandering if this will affect my tax credits and if i have to declare it plz??? wuld be greatfull if you could help me...
  • LYNDS2904
    Renewal tax credits
    I posted my renewal form of 3 weeks agoa and havent heard anything back does anyone know how long it takes to get a reply because in the past its been only a few days thanks
  • LYNDS2904
    Renewal tax credits
    Hi could anyone tell how long it takes to get your forms back i hve posted my renewal 3 weeks ago and havent heard anything from them normally only takes a couple of days please help i am confused xx
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