To think HMRC would inform us about changes to tax credits

[noisytoys]

I saw this morning from various sources (FB, a thread in money) that tax credits have been reduced for a lot of people with no notice. I checked my tax credits which went in today and lo and behold, £94 every 4 weeks reduction. There is no more I can cut. I can't afford to live now. I thought I would put this here for traffic because I fear millions of people will affected

[RedHelenB]

Do you know why it's been reduced?

[ohmentalnessisme]

Yes, we've just lost £65 per week with no notice but its because of changes to our circumstances that weren't taken into account last year. We knew our tax credits would be reduced but had no idea by how much so it was a bit of a shock when dh went to the bank to check yesterday and nothing had been paid in.

[LaurieFairyCake]

There will be stuff you can cut, people here are amazing at budgeting - post your budget and people will have a look

Is there a way you can increase your income - again folks here are brilliant at suggestions.

[NameThatTuna]

Forgive me if i'm wrong as I know zilch about tax credits, but I just had a thought. Could this be because the personal tax allowance has increased this month?

[lougle]

It can't be with no notice. They must have sent a revised award notice, surely?

[Mrcrumpswife]

Ours dropped by 63.00 per week as from today and like ohmental it was due to change in circumstance from last year. We had no idea how much until this morning and its a massive shock considering the increase in wage last year was relatively small.

[NameThatTuna]

I agree lougle - I don't claim tax credits but I thought everyone knew about the changes. I mentioned it to my mate the other week and she looked shocked. I've seen it mentioned on the new and read it in the papers.

[NameThatTuna]

News

[lougle]

To lose £63 per week in tax credits simply due to income increase, your income must have increased by £154 per week, because the withdrawl rate is 41%.

[MrsPeeWee]

We usually get £41 tax credits per week, usually paid into our acc on a friday. I hope I don't wake up to a big change tomorrow. I'll die on the spot!

[Mrcrumpswife]

I wish it had! I'm going to do battle on the phone line later and get a woolly answer about waiting until my annual renewal form before they will do anything

It seems to be the standard response.

[messybedhead]

Mine was decreased by £60 yesterday and I was not informed that this was going to happen until I checked my account yesterday.

Like you, that money was what I relied on for weekly expenses such as food shopping and travel costs etc.

Like you, I am extremely worried about how I am going to feed my family.

But, I started a thread yesterday and some kind mumsnetters gave me some wonderful tips!

[SherbetVodka]

Ours have been cut from today with no warning too. It came as a particular shock because I stopped work a few weeks ago and although I informed the tax credits office straight away about the change in circs, our child tax credits weren't changed at all (I'd expected them to go back to what they were before I was working as I'd only been in my job since after the last renewal).

Apparently my phoning to tell them about the change in circumstances after leaving work made no difference as they needed income figures for DH too in order to recalculate our award but they never told me this at the time

[messybedhead]

60 per week that should have said.

[Rainbowinthesky]

Surely people knew about this anyway as it's been all over the news for some time. I knew and I don't get them.

[totallystumped]

noisytoys double check the (I think) last page of your most recent notice of award. it usually says what you get the week they issue it, what you'll get every week after that and what you will get every week from the start of the next year - all 3 amounts are often different. If what has gone into your account is different to the "next tax year amount" on the award notice get in touch with them for a reason why.

[Doubtfuldaphne]

Mine went up as from yesterday. It always changes in April doesn't it? I think? According to your circumstances from previous tax year.

[Koyangwuti]

By choice, my family do not claim any tax credits even though we easily qualify for them. We do not take any benefits of any kind in any sphere. We do this because we believe a government in debt is in no position to be subsidizing people's lifestyles; this is a moral stand based on simple, objective mathematics rather than the subjective political arguments that I think are arguable when and if there actually is money to help people.

Whether you agree with me on this or not, either way, I agree with LaurieFairyCake. There will be ways to budget and be okay. There are people in less privileged areas of the world who live off a few pounds a month and smile and stay in good spirits. I've never spoken with someone who was stressed about money and not found they had expenses which they have said are critically necessary, but yet I would consider such things a wishful luxury. My family is happy and healthy and we feel privileged even though our financial means are very limited. We have avoided money stress almost entirely simply by following the rule that you spend less than what you take in. When we all learn to follow this rule everyone will be in a position of greater security.

[Mrcrumpswife]

Thats nice for you Koyangwuti

[YoniOneSugar]

Koya thanks for that tale of morality but lots of people will be hit hard especially if they're not expecting it in advance.

[NameThatTuna]

I don't claim tax credits Koyang - Through choice too - but I wouldn't be preaching that to people worried about money. You know nothing of the OP's circumstances. Your post isn't helpful is it?

[lougle]

koyanwuti I'm sure that explains precisely why these families have had cuts You make your choices, they claim what they are entitled to.

Nobody should find that their tax credits have gone down without warning. When you do your renewal, you state your income for the current year. The following year's tax credit award is based on that year's income.

So, if your circumstances are the same (ie. number of hours worked, family constitution) then the only change will be due to income.

This year there has been a £30 rise in allowance per child and a freeze on all other allowances.

To lose £94 every 4 weeks, your income must have risen £229 every 4 weeks, or £57 per week.

[noisytoys]

We have cut everything we can. We already have a budget of £30 a week to feed 4. We already live in a 1 bed flat. We already have 2 changes of clothes and 1 pair of shoes each. There is nothing more to cut

[Koyangwuti]

The posts that I do not think are helpful are the ones that complain and encourage a person to feel like a victim. There is another way. What I said was to encourage personal empowerment. I know nothing of the OP's circumstances? I know what the OP said. The OP is getting less money in tax credits and is stressed. To that I responded. Nor do I think it is out of place to do so.

[JambalayaCodfishPie]

My payment today was £4.00 less than normal. Obviously not a shock on the scale that other MNers have received, but I have had no SPECIFIC information with regards to this, no notification letter or anything.