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

"" Message poster lougle Fri 12-Apr-13 08:18:49
It doesn't make sense. The HMRC site confirms the information in the link I posted upthread. There is no cut in tax credits this year, apart from a lowered disregard to £5000 from £10000, and a modest increase in some other elements. The only thing that would change the award is a change in income/circumstance.""

HMRC make an assumption in line with cost of living that everyone gets a pay rise, this is how they estimate the next years award as per your last award letter, on that letter it states the estimated income.

This year there were very few uprated elements of Tax Credits. These are the parts of calculating the award. Ignore at this stage anything to do with disregards. The basic element of tax credits had no uprating this year, they have now assumed you have had an estimated pay rise (this is gross so nothing to do with tax allowance going up) so the two figures are now moved closer to each other making the award less.

So for example

Basic working tax credit element 2011/12 - £1920(actual)

Minus
Income exact from renewal 2011/12 - £7000 (example for this)

Then next year they assume a pay rise

Basic working tax credit element 2012/13 - £1920 (still actual as no uprating)
Minus
Income estimated by HMRC until renewal 2012/13 - £7500 (as above still an example)

As you can see the calculation has changed so therefore you are going to lose money as there is difference in the calculation now when they take into account the 41% withdrawal.

As soon as everyone gets their P60 they can ring Tax Credits and tell them of a likely income, you do not have to wait for the renwal pack. you can give an estimation without the P60 if you know their esimation is way out but try to calculate it correctly.

The disregard mentioned as above dropping from £10,000 to £5,000 only matters to pay rises, so it only applies if your income from 2011/12 to 2012/13 has risen by over £5,000 per year.

i've tried to explain tax credit as best as I can as it is very complex, there are many elements to it that are not mentioned here and many did not get uprated this year and the elements that did were small.

I hope this makes sense, I work in the benefits area so can help hopefully but not exclusively in tax credits

catloony I understand that perfectly, thank you. However, some posters have had their tax credits drop by £100 per week which would mean that they have had an income increase of £244 per week!

Nobody is going to get a standard payrise of £244 per week.

It's hard to say why drops like that happen without seeing exact figures, but sometimes it can be confusing as for example one partner was not in paid employment as staying at home the previous year, at a different job with a different salary.

The bit that can be confusing is it is on the previous years income, so with out knowing those posters exact circumstances over the past couple of years it is impossible to say exactly why not what is now

Of course, but if posters say their circumstances haven't changed, then the confusion is understandable.

MP Jo Swinson is calling for interns to be paid the minimum wage so she ended up getting tweets asking why cant it be the same for workfare.

Difference is, interns are notoriously rich kids (who else can work for free??) so I fear that the link between interns and workfare will be ignored, after all, the poor are just shit people right? The undeserving.

Our income is fixed as we live on dh`s pensions, our tax credit was cut by £30 last month and £40 this month. We rely on every penny with three 15 yr olds and my dh has cancer :(

i thought everyone got a renewal pack in april /may and it had to be filled in by july ?

They did this to me also - I am down 240.00 a month. That is because of one change that I knew of, my son reaching 20 - fair enough. But the reason for the rest, after much calling them up to find out was given as, changes in personal circumstances last year. I asked, what changes? They said they would send me out a new renewal form in due course and I had to fill it in. I said, yes, I know that, I am asking what changes for the last year? They said your son is 20, do you really expect the state to pay for him indefinitely? Bit gobsmacked at that - never mentioned my son at all to the woman beyond saying, that bit I understood...
I asked to speak to another operative because I can't take that sort of c**p over a phone... And got cut off. Had to go through the whole call them up thing again and got told I had to fill out the renewal when it arrived - no explanation given for the loss of the rest of the money beyond change of personal circumstances last year.
No notice at all of this - just my payment went into bank down the money.

This was over a month ago and piddled me off no end. It drove me to apply to college, go back and re-train for a better paid job in 18 months time. Got to work still as well but I am going to knock myself out over the next 18 months working and studying so I can get myself out of this mess. I do not trust the Government at all. They have no idea about the reality of life and are just cutting everything they can think of except their own salaries. They have been wa**ing themselves off ever since they arrived in power... I have massive sympathies for anybody that works in DWP and Tax Credits because they have got to be getting slammed from the public generally because of all the cuts and changes coming in. I even forgive that woman who made the quip over my son as she is possibly just getting abused over the phone all the time.
Sorry - long berating post for a Monday morning.

Shouldnt the renewal pack have come through by now? I have not received anything.

Sieze do you have other children that you also claim for?

It may be that the interim amount currently being paid assumes a pay rise. As soon as you get your figures for last year just ring up and do the renewal over the phone.

I got my pack to discover they'd removed the wrong child dd1 had gone to uni but they took dd2 off instead. Not happy about that.

Lovelygoldboots I only got mine on Friday so they are on their way.

Thanks manic

Ours have been cut by £167 a month, our circumstances remain the same, i called them last night to be told the renewal packs are being sent out between April and June so until they recieved the pack back our tax credits will remain lowered, I'm fuming as its also half term and I don't get paid as I only work term time

Koy Out of curiosity how much money do you and your partner take home a month?

I didn't know tax credit awards were so high. There are some really high figures of what people get per week unless it maybe includes child benefit as well. Wages really do need to increase so they are not supported by tax credits

This is a zombie thread people!

Tax credits take into account the number of children you have, so the more kids you have the more money you get. A couple with 4 kids with a household income of about £12k will get almost £13k in tax credits to top them up.

you can renew on the phone you dont need the pack x

The last page of your latest final awards notice tells you what your payments will be up to the end of the tax year and what it will be at the start of the new tax year. This will change when you give them your final income for 2013/14 but you have to wait for your pack, any underpayment will be credited to your account in a separate payment and any overpayment will be deducted from your new award! Hunt out your paperwork it is all there in black and white, you only need to phone then if the amount you are now getting is less than what's on your latest award notice.

Mine has gone up ten pounds to 331 and change a week.

I noticed I had £20 more today but didn't know why.

I have only been on WTC/CT for a month.

While I am here, I double checked my figures and they estimated my income to be about £800 less than what it was for the year. Is that going to be a huge issue?

Like I say I am new to having to declare my income so really worried about getting in trouble.

I will call them on Monday and let them know but this is all worrying to me.

Any overpayments (if there have been any they will be small if you have only been on it a month) will be deducted from what they award you for the next 12 months when you give them the actual figures for the last tax year when you phone up your renewal when your pack arrives.

We're had a drop but it's because this is the first proper week in the next tax year - it would have told you on your last awards notice what your 14/15 payments would be - it did on mine anyway

Gaaah zombie thread

Oh I see this is a zombie thread.

Thanks McPie.