Child tax credits help

Gonnadoit · 10 August 2018 at 10:38PM

So I have just started a new job after been out of work for 5 years, we have been claiming child tax credits which this year was calculated at 289 every 4 weeks.

I entered my change of circumstance online and told them the hours I would be doing and the pay and they have said I am still entitled to 109 every 4 weeks, this seems a lot and I've called them up to check and they have said it's correct. I'm worried that come next year they have said I have been overplayed and will and up having to pay it back !,

Another thing is that there is always overtime going at work and how would this effects the tax credits and how to I declare it ? Obviously it wouldn't be the same each month and some months I might not even get any.

Any help is much appreciated thank you

calcotti · 10 August 2018 at 11:29PM

If your income for this year is less than £2,500 more than last year your tax credits will still be based on income from last year. If it is more than £2,500 above last year then they will be based on this year minus £2,500. this means that this increase has a smaller impact this year than you might expect.

I don’t know the best way of keeping up to date with overtime. Perhaps you can provide an estimate and then monitor what actually happens and report it if you can see there is a divergence. Others may have a better idea.

Gonnadoit · 10 August 2018 at 11:59PM

Hello thank you for the reply, I don't quite understand though, my income for last year was zero as I wasn't working.
I'm just really worried that I shouldn't be getting the payment they are giving me, even though I have called and double checked. It just seems wrong that I have gone from earning nothing and getting 289 every 4 weeks to earning 640 and then still getting 109 every 4 weeks.

Newtothis92 · 11 August 2018 at 12:19AM

Could it be that you are now entitled to working tax credits possibly?

calcotti · 11 August 2018 at 7:00AM

Assuming you have had a written confirmation of the award look carefully at the details they have used to do the calculation. If the income figures are correct the award should be too.

As per previous post look to see if you are getting some Working Tax Credits as well as Child Tax Credits.

Darksparkle · 11 August 2018 at 9:00AM

You say we are claiming, do you have a partner? If so do they work?

Gonnadoit · 11 August 2018 at 7:55PM

Thanks for the replies.

Yes I have written confirmation and confirmation over the phone. Not entitled to working tax credits it's just child tax credits.

Yes I have a partner who works and earns 25000 a year.

Darksparkle · 11 August 2018 at 11:07PM

If you have a partner working full time then your claim is WTC and CTC. You'll not receive WTC though due to income.

Are you claiming help with childcare? Without knowing more about your circumstances and income it's hard to give much advice on whether your claim is correct. If working overtime I'd advice you to over estimate your income to avoid overpayment

Gonnadoit · 12 August 2018 at 3:49PM

Hi thanks for the reply.

No help with childcare as they will be starting school and nursery in September.

That's the thing with the overtime it's not guaranteed and I'm not going to be doing the same each month, the last person I spoke to on the phone was really unhelpful and just said if they overpay me then I will have to pay it back, but that's what I'm trying to avoid before it happens !

I've seen on another thread about a 2500 disregard ? Would that apply for me or not , it's all so confusing.

calcotti · 12 August 2018 at 4:17PM

Gonnadoit wrote: »

I've seen on another thread about a 2500 disregard ? Would that apply for me or not , it's all so confusing.

Post 2 in this thread refers also.
Your award is based on your joint income. If you are going to earn more than £2,500 before the end of this tax year (which I trust you are) and your partner's income is unchanged then clearly your joint income will rise by more than £2,500. Your Tax Credits award should therefore be based on income for this year minus £2,500.

If the thing that most worries you is the risk of a Tax Credits overpayment I agree with Darksparkle that probably the best you can do is be generous to yourself in estimating your overtime to reduce the risk.

I have also seen instances where HMRC have only applied a £1,500 disregard to the revised Tax Credit award thereby keeping £1,000 of the disregard you are entitled to in hand for the final end of year adjustment. This has the effect of reducing the risk of overpayment.

If there is an underpayment of Tax Credits as a result you should get paid that next year.

Gonnadoit · 12 August 2018 at 6:00PM

Thanks for taking the time to reply.
I have just amended my claim online and added another 1500 to my pay for the year, so hopefully this should cover any overtime I do.

Child tax credits help

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