Tax Credit Briefing discussion

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  • Hi All,

    I'm new today so apologies if i make any mistakes.

    I currently receive child tax credit for two children. I know the renewal pack is due soon and I'm unsure what to do. My partner is being made redundant but not until August so when I get my renewal pack which I know is to confirm his money for last year, it also goes off this amount for 2011/2012 year as well. Do I inform them about his redundancy but then I can't really work a figure out for this year, or do I leave it until it's a bit closer to August and then let them know?

    Thanks
  • KevinG
    KevinG Posts: 1,850
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    clucky10 wrote: »
    Hi All,

    I'm new today so apologies if i make any mistakes.

    I currently receive child tax credit for two children. I know the renewal pack is due soon and I'm unsure what to do. My partner is being made redundant but not until August so when I get my renewal pack which I know is to confirm his money for last year, it also goes off this amount for 2011/2012 year as well. Do I inform them about his redundancy but then I can't really work a figure out for this year, or do I leave it until it's a bit closer to August and then let them know?

    Thanks
    Personally I would wait until after it had happened, a lot can change between now and August in any case. As you say, the renewal pack is for last year, you don't have to work out figures for this year, just tell them about any relevant change in circumstances when they happen, and nothing has changed yet.
    2kWp Solar PV - 10*200W Kioto, SMA Sunny Boy 2000HF, SSE facing, some shading in winter, 37° pitch, installed Jun-2011, inverter replaced Sep-2017 AND Feb-2022.
  • avoint
    avoint Posts: 8
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    Would really appreciate any feedback on my case. I contacted TCC today to advise them that I had been made unemployed and that that I wished to claim for Credits. They said that I would need to estimate my wage for 2011. I told them that I had visibility as to what I was going to be paid in my 3month contract termination but did not have a crystal ball to anticipate when or how much I would be paid when I got a new position. They told me that any money paid would have to be paid back if I exceeded the £42K limit in the tax year. However they also said that I could not claim, for instance, at the end of the year for any under payment as this is based on only 3 months.

    My problem is that any new position will be on a salary of over the threshold level of £42K but I have no idea when I may get another job. I am entitled to credits based on what I know I will earn to the end of my contract but have no visibility for the future and do not want to end up paying back money which I may have already spent!!

    The system has turned very one sided now and people such as myself whom have paid excessive amounts of tax and NI seem not to be entitled to help when they need it.
  • Hi there, can anyone help me with the tax credits maze? I filled out the benefit checker and the government's tax credit check last year and they both showed that I could get over £50/wk in tax credits - I was actually awarded £1.04/ wk. This year I have had this amount cancelled as my earnings are apparently too high - I work for a charity and earn £13200/ year. I live alone and after tax, NI, pension, rent and council tax there is really not much income left for bills etc. I realise that £1.04 is not a lot to lose but I needed the tax credit to get free prescriptions. I have filled in the benefit checker for this year and it eastimates that I am entitled to just over £90/ year in tax credits. How come the estimates from both government and non-government sites differ so much from what people are actually entitled to? If anyone could offer any advice I would be most grateful.
  • pipscot
    pipscot Posts: 353 Forumite
    Hi there, can anyone help me with the tax credits maze? I filled out the benefit checker and the government's tax credit check last year and they both showed that I could get over £50/wk in tax credits - I was actually awarded £1.04/ wk. This year I have had this amount cancelled as my earnings are apparently too high - I work for a charity and earn £13200/ year. I live alone and after tax, NI, pension, rent and council tax there is really not much income left for bills etc. I realise that £1.04 is not a lot to lose but I needed the tax credit to get free prescriptions. I have filled in the benefit checker for this year and it eastimates that I am entitled to just over £90/ year in tax credits. How come the estimates from both government and non-government sites differ so much from what people are actually entitled to? If anyone could offer any advice I would be most grateful.

    Hi treaclepins - it is correct that as a single person earning £13200, you would not be entitled to any tax credits for 2011/2012. If you use https://www.entitledto.co.uk to do your estimate, it confirms this. The cutoff for a single person to claim tax credits is approx £12900. Hope this helps. :)
  • KevinG
    KevinG Posts: 1,850
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    avoint wrote: »
    Would really appreciate any feedback on my case. I contacted TCC today to advise them that I had been made unemployed and that that I wished to claim for Credits. They said that I would need to estimate my wage for 2011. I told them that I had visibility as to what I was going to be paid in my 3month contract termination but did not have a crystal ball to anticipate when or how much I would be paid when I got a new position. They told me that any money paid would have to be paid back if I exceeded the £42K limit in the tax year. However they also said that I could not claim, for instance, at the end of the year for any under payment as this is based on only 3 months.

    My problem is that any new position will be on a salary of over the threshold level of £42K but I have no idea when I may get another job. I am entitled to credits based on what I know I will earn to the end of my contract but have no visibility for the future and do not want to end up paying back money which I may have already spent!!

    The system has turned very one sided now and people such as myself whom have paid excessive amounts of tax and NI seem not to be entitled to help when they need it.
    You seem to have assessed the position correctly so why don't you just claim based on an estimate of your likely earnings for the year based on your best guess of how long it will take you to get another job? As you say, if you wait until after the end of the tax year your claim would only be backdated three months so you could lose out. Just be realistic, don't use too low a figure and you shouldn't be left with a large amount to repay. On the plus side, if you do overestimate you will get a nice bonus payment after submitting your year-end update.
    2kWp Solar PV - 10*200W Kioto, SMA Sunny Boy 2000HF, SSE facing, some shading in winter, 37° pitch, installed Jun-2011, inverter replaced Sep-2017 AND Feb-2022.
  • avoint
    avoint Posts: 8
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    KevinG wrote: »
    You seem to have assessed the position correctly so why don't you just claim based on an estimate of your likely earnings for the year based on your best guess of how long it will take you to get another job? As you say, if you wait until after the end of the tax year your claim would only be backdated three months so you could lose out. Just be realistic, don't use too low a figure and you shouldn't be left with a large amount to repay. On the plus side, if you do overestimate you will get a nice bonus payment after submitting your year-end update.

    Thats the million $ question Kevin......I know my next position will place me in a position where I would not be eligible for TCC but do not know when I will get that position! A real pain in the proverbial !!

    Thanks
  • I sent my claim form back to the Tax Credit office last year and to date I am still yet to receive any money. They have confirmed that the form was received on 18th November 2010 and that there are no queries on it. I have rung them on god knows how many occasions and all I am told is that it is "still being processed", on the last phonecall I was told by the person on the other end of the phone that she was "fast tracking" it to management and that it would take 10 working days, that I would "definitely" get a phonecall from them and I then would receive an awards notice. That was a month ago, no phonecall and STILL no money.

    Each time I ring I am variously told that any Child Tax Credt I do receive will only be "backdated 3 months from the receipt of the form" i.e August 2010", or it will be "backdated from 18th November 2010 to date" (5 and a half months and counting!!!...) or "it will be backdated from 3 months from receipt of the form to date".....

    CAN SOMEONE, ANYONE PLEASE GIVE ME SOME ADVICE!!!! I never get the same answer twice from anybody at the Tax Credit Office.
  • 54druids
    54druids Posts: 516 Forumite
    About 4 years ago my husband set up a new business and we weren't getting paid so I phoned the tax credit line and they started giving us 200 quid a month. Once we started getting paid 4 months later they took it all back. They didnt ask for it back they just said it would come off future payments which then stood at 38 a month. Really bad mse member here has not done anything about it since. Our situation now is that we haven't had a full wage for over a year and the company is not making a profit so what do i put down on the form? Or do I phone the the tax credits people and let them know whe aren't getting a full wage. To make this more complicated our wages are paid part wage part dividend. Our accountants firm are not being overly helpful as they say it is not part of their remit and tbh we cannot afford to pay them to fill out our forms
    Smile though your bank is breaking:)
  • Tight_Fist
    Tight_Fist Posts: 408
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    Can someone offer some advice on Child Tax Credits. My wife and I started claiming about 5-6 years ago when our daughter was born and we got about £1500 in the 1st 12 months but then nothing for the last 4-5 years due to over payments. To our amazement my wife received £49.46 in Child Tax Credits at the end of April so I assume we have finally court up. When we complete the new form to show our earnings and childcare costs do we need to state which year they changed or do they only look back 12 months? It's just that our financial position has changed quite a bit in the last 5 years and we never looked at the forms when they came because we weren't getting anything :D
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