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Tax credits part year claim.
Alex_HAZEL
Posts: 2 Newbie
Hello All, I was awarded tax credits as a single parent in May 2017. I have rececently been notified by HRMC that I have been overpaid tax credits for 2017/18. The paperwork I have been sent from HRMC shows that the elements I have been awarded have been reduced for the year 2017/18. For example the child element has been reduced to £2,280. I believe this is fair enough. As I only claimed tax credits for part of the year then any elements in my tax credit calculation should match the time period I claimed. It appears, however, that when they assessed my income for 2017/18 they have used my income for the whole year. Not the income I earned during my tax credit claim period! Anyone know if such an approach by HRMC to earned income is correct?
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Comments
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Unfortunately yes, they consider your income for the full year.0
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Thanks for that. Seems unfair approach to me. Cheers.0
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Unfortunately yes, they consider your income for the full year.
No that's not correct. They ask for your income for the whole year but then it is pro-rated to cover the period of your award.
OP - on the section of your award notice where the elements are there should be something that says 'reduction due to income' - in that bit they should have pro-rated the income. However on the income parts of your award notice it will show the annual income.
It isn't your income that you received in the period of your claim, but your income for the whole year/365 x no of days of the claim. Income is spread out evenly across the year.
IQ0 -
I always renewed my tax credits claim although even as a single person I wasn't entitled to payments due to earnings but just filled in the renewal each year in case I had a change of circumstances. I ended my claim in October last year when my partner moved in, I rang and notified them and we didn't bother making a joint claim.
I've now been told that they will owe me money as I have been underpaid. This is due to me only earning £17k last year as I was on maternity leave so they've said in the claim period march 17-oct 17 I should have received payments.
Although my yearly earnings were much lower I didn't feel this as I was receiving 90% of my salary in that time period and by the time my mat pay had dropped off my partner had sold his house and moved in with us so was then contributing towards household bills etc
The advisor said on the phone it doesn't matter that in the march-oct time I was earning usual salary (30k) as they look at the annual figure and pro-rata this for the amount of months I had a claim as a single person. It feels a bit wrong as she was talking as though I was owed a fair bit of money.0
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