Child Tax Credit Question

[Millie1]

When DH got his P60 recently it showed his gross income for 2004-05 as being around 5-6k less than what we had anticipated, and advised the IR of for Child Tax Credit purposes. I've called to tell them and they have sent out a revised payment schedule for the current year but with no mention of last year. Can anyone tell me if they are likely to make up last year's shortfall at this stage or do we just have to write it off?

Thanks!

[SaintGeorge]

AFAIK they don't always pay it as a lump sum, they just adjust your current credits to pay you the backlog when it is an ongoing claim. If you don't see a rise in your current payments then query it with them (Good luck!)

[Millie1]

Thanks ... the most recent correspondence shows a rise but details it to cover this year so I might ring them to see if we're entitled to claim what is now an underpayment for last year. Bet they'll say no but it's worth a shot!

[Dingle]

If you haven't already done so , it's very easy to check the figures out online. It might be that they are paying you withing the increase in this years figure.

If you ned the link just shout, sure I just used inlandrevenue.gov.uk and there was a header for tax credits!

[SaintGeorge]

It will cover this year - Tax Credits are always effectively calculated a year in arrears with this years income just an estimate.
When they confirm your 05/06 income this time next year any amendments would be made to your credits in 06/07
The only time that changes is if you have a massive change of circumstances such as redundacy.

[Millie1]

Thanks Dingle & SaintGeorge. I checked it out based on salary and what we should get is less than their assessment so they're obviously making up last year's shortfall - hooray!!