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  • FIRST POST
    • textbook
    • By textbook 13th Apr 19, 8:34 AM
    • 175Posts
    • 17Thanks
    textbook
    If your predicted tax credit amount is different to actual do you tell HMRC?
    • #1
    • 13th Apr 19, 8:34 AM
    If your predicted tax credit amount is different to actual do you tell HMRC? 13th Apr 19 at 8:34 AM
    Predicted £7,000 for tax credits but actually made £8,200. As soon as I submit tax return, should I tell HMRC the difference in figures or wait for them to adjust it?




    To get free prescriptions on tax credits , do I need a card?
Page 1
    • calcotti
    • By calcotti 13th Apr 19, 9:43 AM
    • 2,194 Posts
    • 1,472 Thanks
    calcotti
    • #2
    • 13th Apr 19, 9:43 AM
    • #2
    • 13th Apr 19, 9:43 AM
    Predicted £7,000 for tax credits but actually made £8,200. As soon as I submit tax return, should I tell HMRC the difference in figures or wait for them to adjust it?
    Originally posted by textbook
    Because the difference is less than £2,500 it will not affect your award and there will not have been an overpayment. However your 2019-2020 award will be based on the higher amount so your ongoing award will be reduced. I don't think the Tax Credits section will be informed by the tax section so you need to tell Tax Credits the revised figure either now or when you get your annual renewal letter through. Obviously the longer you leave the longer you will have been receiving a payment which will have been too high and the adjustment will then further reduce your payments for the rest of the year.
    • sheramber
    • By sheramber 13th Apr 19, 10:47 AM
    • 6,189 Posts
    • 4,678 Thanks
    sheramber
    • #3
    • 13th Apr 19, 10:47 AM
    • #3
    • 13th Apr 19, 10:47 AM
    If you are entitled to a NHS exemption card it will be issued automatically.

    Details here https://www.nhsbsa.nhs.uk/exemption-certificates/nhs-tax-credit-exemption-certificates
    • textbook
    • By textbook 14th Apr 19, 9:46 AM
    • 175 Posts
    • 17 Thanks
    textbook
    • #4
    • 14th Apr 19, 9:46 AM
    • #4
    • 14th Apr 19, 9:46 AM
    If you are entitled to a NHS exemption card it will be issued automatically.

    Details here https://www.nhsbsa.nhs.uk/exemption-certificates/nhs-tax-credit-exemption-certificates
    Originally posted by sheramber





    Still a bit confused. I followed the chart and as I don't have a disability with my tax credits I think I am not entitled . I ONLY get £8,200 income last year so get tax credits on last year's tax return. Is it definitely right that I can't claim?


    I don't think I got a card.


    The foreign pharmacist said I was entitled when I said I only get tax credits so I didn't pay. will I now get in trouble? Still not certain if I get them for free or not.


    Should I pay the full amount from now on? Also, now I realise I might have made a mistake, should I contact someone to prevent getting arrested? I got three items without paying


    I ticked the box on back of form to say I get tax credits. It's not very clear
    Last edited by textbook; 14-04-2019 at 9:54 AM.
    • sheramber
    • By sheramber 14th Apr 19, 10:55 AM
    • 6,189 Posts
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    sheramber
    • #5
    • 14th Apr 19, 10:55 AM
    • #5
    • 14th Apr 19, 10:55 AM
    If you only get tax credits then you are not eligible for an exemption card.

    You may be entitled to help under the low income scheme
    https://www.nhsbsa.nhs.uk/nhs-low-income-scheme

    You may be issued with a penalty for wrongly claiming exemption but you will not be arrested.

    You may with to contact service below and explain.

    Prescription Exemption Checking Service (penalty charges)

    Online: use our online form

    Telephone: 0300 330 9291

    Opening hours: 8am to 6pm Monday to Friday, 9am to 3pm on Saturday

    https://www.nhsbsa.nhs.uk/contact-nhs-help-health-costs
    • calcotti
    • By calcotti 14th Apr 19, 11:18 AM
    • 2,194 Posts
    • 1,472 Thanks
    calcotti
    • #6
    • 14th Apr 19, 11:18 AM
    • #6
    • 14th Apr 19, 11:18 AM
    If you only get tax credits then you are not eligible for an exemption card.
    Originally posted by sheramber
    That's not what the link you provided earlier says:
    You're entitled to full help with health costs if your annual family income used to calculate your Tax Credits is £15,276 or less and you receive either:

    Child Tax Credit
    Working Tax Credit and Child Tax Credit paid together
    Working Tax Credit including a disability or severe disability element
    It is true that if you only get Working Tax Credits (without a disability element) you are not entitled to an exemption card. I think this is probably what you meant but just want to be clear for OP.
    • textbook
    • By textbook 16th Apr 19, 6:50 AM
    • 175 Posts
    • 17 Thanks
    textbook
    • #7
    • 16th Apr 19, 6:50 AM
    • #7
    • 16th Apr 19, 6:50 AM
    went back to pharmacies and they hadn't sent the prescriptions off so paid for them. Ill try and apply for card
    • _shel
    • By _shel 16th Apr 19, 7:20 AM
    • 1,850 Posts
    • 3,464 Thanks
    _shel
    • #8
    • 16th Apr 19, 7:20 AM
    • #8
    • 16th Apr 19, 7:20 AM
    Still a bit confused. I followed the chart and as I don't have a disability with my tax credits I think I am not entitled . I ONLY get £8,200 income last year so get tax credits on last year's tax return. Is it definitely right that I can't claim?


    I don't think I got a card.


    The foreign pharmacist said I was entitled when I said I only get tax credits so I didn't pay. will I now get in trouble? Still not certain if I get them for free or not.


    Should I pay the full amount from now on? Also, now I realise I might have made a mistake, should I contact someone to prevent getting arrested? I got three items without paying


    I ticked the box on back of form to say I get tax credits. It's not very clear
    Originally posted by textbook
    The pharmacist nationality is important?
    • 50Twuncle
    • By 50Twuncle 16th Apr 19, 12:30 PM
    • 9,133 Posts
    • 2,316 Thanks
    50Twuncle
    • #9
    • 16th Apr 19, 12:30 PM
    • #9
    • 16th Apr 19, 12:30 PM
    Because the difference is less than £2,500 it will not affect your award and there will not have been an overpayment. However your 2019-2020 award will be based on the higher amount so your ongoing award will be reduced. I don't think the Tax Credits section will be informed by the tax section so you need to tell Tax Credits the revised figure either now or when you get your annual renewal letter through. Obviously the longer you leave the longer you will have been receiving a payment which will have been too high and the adjustment will then further reduce your payments for the rest of the year.
    Originally posted by calcotti

    When was the limit of £2500 set ?
    Because, in 2012 I claimed WTC and underestimated our income by £1600 - I was threatened with a summons, unless I repaid ALL of the WTC that I had received within a month *REALLY THREATENING LETTER* - I repaid it all (some £2000) and have been scared to reapply since then...
    • sheramber
    • By sheramber 16th Apr 19, 1:10 PM
    • 6,189 Posts
    • 4,678 Thanks
    sheramber
    When was the limit of £2500 set ?
    Because, in 2012 I claimed WTC and underestimated our income by £1600 - I was threatened with a summons, unless I repaid ALL of the WTC that I had received within a month *REALLY THREATENING LETTER* - I repaid it all (some £2000) and have been scared to reapply since then...
    Originally posted by 50Twuncle

    The disregard applies to the difference between the 2011 actual income and the 2012 actual income. The estimated income is used until the actual figures are known.

    https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-the-disregard/#History%20of%20the%20income%20disregards
    • 50Twuncle
    • By 50Twuncle 16th Apr 19, 1:16 PM
    • 9,133 Posts
    • 2,316 Thanks
    50Twuncle
    The disregard applies to the difference between the 2011 actual income and the 2012 actual income. The estimated income is used until the actual figures are known.

    https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-the-disregard/#History%20of%20the%20income%20disregards
    Originally posted by sheramber

    Its probably too late to do anything about it now - but my income in 2011 was low due to living on benefits (ESA and my wife had a part time job) - I claimed WTC for a job that I started in 2012 and underestimated our combined income by £1600 - Which caused them to claim it ALL back from me
    • calcotti
    • By calcotti 16th Apr 19, 2:54 PM
    • 2,194 Posts
    • 1,472 Thanks
    calcotti
    When was the limit of £2500 set ?.
    Originally posted by 50Twuncle
    https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-the-disregard/#History of the income disregards

    History of the income disregards
    The income disregard, for rises in income, from 2003-04 to 2005-06 inclusive was £2,500. Its purpose was to provide a ‘buffer zone’ in which a family’s income could increase during the course of a year without affecting their tax credit entitlement. Though considered generous at the time it was introduced, the £2,500 buffer zone proved insufficient to prevent hardship to families whose income increased above that amount. Therefore in 2006-07, in a bid to reduce the volume of overpayments arising from increases in income, the income disregard was increased quite dramatically to £25,000.

    That was probably the most significant of the changes announced in the Pre-Budget Report on 5 December 2005, and the overpayment figures relating to the 2006-2007 tax year showed a significant fall in both the number and amount of overpayments. HMRC have attributed this largely to the increased income disregard.

    The effect of the increase was to bring greater certainty for claimants in a system where a major problem had been the sheer unpredictability of what families could expect to receive. The June 2010 Emergency Budget announced further changes to the disregard both by introducing a disregard for falls in income of £2,500 from April 2012, but also by reducing the disregard for increases in income from £25,000 to £10,000 from April 2011. This was further reduced to £5,000 from April 2013, and from April 2016, the disregard for increases in income is back to the original figure of £2,500
    Last edited by calcotti; 16-04-2019 at 2:58 PM.
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