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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

tax credit change from april 2011 limit down to £40k my dh earns £44 will we owe april,may and june money?

58 replies

tinkbig · 12/06/2011 13:06

hi

dh earns £44k which is over the £40k
will we owe tax credits that we received apr,may and june - have received £100

OP posts:
EricNorthmansMistress · 12/06/2011 13:31

Yes you will. Tell them asap and they will stop giving you any more. Of course you will owe it.

atswimtwolengths · 12/06/2011 13:41

Why did they pay you, then? Shouldn't they have withheld payments if people are no longer entitled?

Northernlurker · 12/06/2011 13:46

Interestingly this happened to us last year. So far I have had two letters re last years award. One said we will owe £125 and one said nothing was owed Hmm Neither letter asked for payment so I will be waiting for them to sort themselves out.

Original poster
tinkbig · 12/06/2011 14:03

Interesting northern
Thanks

OP posts:
lockets · 12/06/2011 14:10

This reply has been deleted

Message withdrawn at poster's request.

MovingAndScared · 12/06/2011 14:12

does he pay into a pension as I think that doesn't count toward the limit - just make sure they have up to date info that is all you can do

crazycarol · 12/06/2011 14:19

We earn just over £40000 and got a letter end of march saying that our payments would stop. We haven't received a penny and I didn't contact them. There must be some reason why thay have still paid you, I would contact them. Did you get a renewal pack in the mail?

valiumredhead · 12/06/2011 15:42

We haven't had a letter informing us of any change of circumstance!

Original poster
tinkbig · 12/06/2011 16:53

cheers ladies

going to phone but will take with a pinch of salt

thanks

OP posts:
valiumredhead · 12/06/2011 17:08

Have just checked bank statement - we are still being paid TC.

soverylucky · 12/06/2011 17:23

This reply has been deleted

Message withdrawn at poster's request.

TooManyBlossoms · 12/06/2011 17:33

We don't earn over 40k, but did get a letter saying ours would stop due to the new threshold; payments stopped in March. However as I'll qualify as a nurse in January and hopefully be working, we will be well over the limit so haven't bothered re-applying. I think they just make it up as they go along.

Lorelai · 12/06/2011 17:42

We are over £40k but payments have continued. Got a letter this week asking us to confirm salary for last year and this year, so I assume we will owe something once they recalculate it.

What is really annoying is that while I am on mat leave our income is under £40k pro rata, but as my time off is split evenly over 2 tax years, the total for each year is still over £40k IYSWIM.

roulade · 12/06/2011 17:59

I thought it was 42K.

Birdsgottafly · 12/06/2011 18:05

It is an 'over payment' the sooner that you try to sort it out the easier that it will be. In my voluntary job i deal with benefits and people have come in with demands years back, of course then they have no way of proving if the TC have got it right. You should have recieved an estimate of your award by March which is aimed to stop an overpayment or under award. They will make a repayment schedule with you, they cannot demand what you cannot afford, threaten to go to the CAB if they do.

HauntedLittleLunatic · 12/06/2011 18:16

If they have changed the threshold (sorry haven't kept up to date) then they will have adjusted it as on April, and you should be receiving the right amount (but based on income for 2009/10).

If it is your income which has changed since 2009/10 that you haven't told them about yet because you haven't yet renewed then you will have been paid money you are not entitled to and will have to pay back.

Of course it could be a combination of the 2, but ultimately they can't calculate correct amount until you inform them of correct amount Andy discrepancy in tbd made lead to you owing them money.

Original poster
tinkbig · 12/06/2011 20:11

hubby was earning over the £40k at our last renewal last year
the most we should owe is £40 x3 received £40 april,£40 may and £40 june
so not loads!
will be phoning them up this week to deal them how much dh earns
i was also under the impression that payments would stop from april

OP posts:
Lorelai · 13/06/2011 07:12

I think part of the problem is that is you were earning under the old threshold they didn't necessarily know your exact income - they would just ask at renewal if you were still under it. So now, they don't know which people who were under the old one and now over the new one. That is the issue for us anyway.

Now I just need to work out how much I will earn this year - tricky considering work haven't approved/denied my flexible working request yet Hmm

emkana · 13/06/2011 07:29

According to our letter the limit is still 50 k?

ChinnyReckon · 13/06/2011 07:39

I don't get it. We get £40 a month tax credit as well but we only earn £27k combined. Wonder why it's the same amount, doesnt make sense (grumble, grumble).

MumblingRagDoll · 13/06/2011 07:43

Chinny..how many children do you have? There's a big difference between payments for one and for two plus.

bonkers20 · 13/06/2011 07:44

It might be the Child Care Element which makes a difference for people.

Lorelai · 13/06/2011 07:56

Previously there was no difference in payments between £25(ish)k and £56 (ish)k - now the upper threshold has been lowered, and the lower threshold (to get more than the minimum of £545 per year) has been raised. So people above the new upper limit will get nothing and people between the old £25k (ish) lower limit (for getting more than the minimum) and the new uppper threshold will get less, on a sliding scale.

That probably makes no sense at all, sorry, it is very early in the morning!

roulade · 13/06/2011 08:02

I was told when I called that if you earn 42k plus then you wouldn't get the child care element anymore which has buggered me up going back to work after maternity as we would be severely worse off, thanks Dave!

ChinnyReckon · 13/06/2011 08:14

Oh we have one child, so maybe that's it. Plus I am on mat leave so maybe it will increase when I go back to work in a few weeks and have the help with childcare costs?

£27k is the combined total of what we'll earn for the year including when I return to work so I really, reeeaallyy hope we get more otherwise we are completely screwed.