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Child tax credits and working tax credits- totally just shot myself in the foot

(14 Posts)
fantasyworld Wed 27-Jan-16 10:37:37

I separated from my husband in April 2015, but due to various life messiness I had not informed the tax office up until now. I have been working as self-employed since May 2015, but prior to that I had a government job. I've just come off the phone with HMRC who informed me that now that they know we are separated, they have interrupted the joint claim, and will likely send me a letter re overpayments since April 2015. I can reapply as a single claimant, however I have just calculated how much I would be entitled to on their website and it seems a lot less than with the joint claim! How can that be now that I'm a single parent? They're only taking into account my earrings between April 2014 and April 2015, but what about my situation now, which is very different? Also, the sum calculated through the HMRC website: is it monthly or yearly?

Thanks in advance

fantasyworld Wed 27-Jan-16 10:38:21

*earnings, not earrings

Cirsium Wed 27-Jan-16 10:43:49

We had a similar issue when applying with DD as our award was based on my previous years self employment when I had been working full-time and then some. Not helpful when you are then on Statutory Maternity Allowance for several months. If your current earnings and situation is hugely different you can let them know on the phone and they may adjust your payments accordingly.

aprilanne Wed 27-Jan-16 10:44:32

probably because you left it nearly a year to tell them .and its less because there is only one adult in the household so less expense and they will calculate things like child maintenance .they will take it back monthly of your new claim .

fantasyworld Wed 27-Jan-16 10:50:34

I guess the other big change is that DD is in school now so childcare expenses have gone down to £0. So if the calculator says my entitlement is X, that is my monthly entitlement? Sorry for being thick.

YouMakeMyDreams Wed 27-Jan-16 10:54:44

I haven't used the calculator for a while but when it gave you a figure it used to be the annual amount but only between the date of claim and the end of the tax year. But again not used it in a while so can't say if it still does.
Once your new claim is up and running you can call and inform them of a change in circumstances if you are earning more or less than the tax year they have used for your claim.

aprilanne Wed 27-Jan-16 10:55:55

its cpmplicated i know .we got ctc when hubby ill and got mixed up when he got his disability pension from ex employer and we had to give them back money its easy to get confused .they even got mixed up told us we were getting 60000 a year pension i bloody wish i thought

Iamnotloobrushphobic Wed 27-Jan-16 10:59:44

The amount it gives on thd calculator is usually the amount for the full year. Go onto turn to us and of a benefit check on there as it is usually more accurate. The childcare costs going down to £0 will severely affect your entitlement and if you have been claiming for childcare but not using childcare for a while then you have probably been significantly overpaid.

fantasyworld Wed 27-Jan-16 11:06:08

Gosh what a mess. Ok, thanks for the advice. It did say on the calculator that the sum was the amount I would be entitled up until April 2016, I'm guessing I can make a new claim in the new financial year. And will call them in any case to let them know of my circumstances.

Babyroobs Wed 27-Jan-16 18:53:07

They will initially base your award on last years income . If your income will be significantly different for the tax year 2016 -17 then you need to let them know and ask for it to be recalculated based on an estimate for 2016-17. If you are self employed and it is going to be difficult to estimate your income accurately then it is best to overestimate it otherwise you could possibly have an overpayment to repay at the end of the tax year. maintainence payments are not taken into account for tax credits.

YouMakeMyDreams Wed 27-Jan-16 18:56:47

Once your claim is running as a single claim you won't need to make a new one you will just get a renewal form to fill in to check any changes. In fact did yoy not get one last year? If you separated in April you eill have got a renewal after that for the new tax year.
You can do renewal online now as well.

megletthesecond Wed 27-Jan-16 19:03:44

Maintenance payments aren't taken into account for working or child tax credits.

You should get more tax credits now if you're a lp, not sure if they can back date the claim though. Maybe 3 months?

Wuffleflump Thu 28-Jan-16 13:16:47

Message withdrawn at poster's request.

Wuffleflump Thu 28-Jan-16 13:17:52

Bugger, wrong window! Sorry. Can it be removed?

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