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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to think tax credits office just pluck random figures out of thin air when deciding how much to give claimants.

79 replies

littleSpud · 21/07/2014 10:40

dh has had to take a pay cut of 9k, taking us from 32k to 23k. we have 3 dcs I am a sahm at the moment

when he was on 32k, we got about 60 a week in tax credits. I did an online calculation which said if he was on 23k we would get about 130 a week

we got our award letter today and we are only getting 70 a week based on his new income!

how the fuck can we take an almost 10k income drop and only get another ten quid a week. it does not make any sense. we are going to be skint and its shit. I genuinely think they just choose random figures as I spoke to my friend who's dp is on 22k (so tiny bit less than dh) and for 3 dc they get 150 !

my youngest dc 4 months old so before the daily mail readers start kicking off I will be looking for work soon. sooner than I thought by looks of it Hmm

OP posts:
Salhal · 21/07/2014 19:52

I'm glad I'm not the only one who doesn't understand how they work it out. It is clearly made up. My understanding is that you need to tell them any change in income or childcare costs straightaway to avoid over and under payments. I have had some fab conversations with them over the phone. And last year's income but this year's (and not even over a year but what you are paying right now) childcare costs, it just makes no sense whatsoever!

HarveySchlumpfenburger · 21/07/2014 19:58

Bits of Universal credit are fine - combining HB and UC, based on current earnings using info from employers (providing HMRC don't have their usual problems with organising a piss up in a brewery). Others not so much.

I have a funny feeling I'm going to lose my disability element. Which apart from the decrease in money will require an increase in hours or I will lose the basic element as well. Which I already know I can't manage because it makes me ill. So I'm looking at losing all my WTC, which might well make me better off not in work. Unless I can get HB to make up the difference.

Original poster
littleSpud · 22/07/2014 08:53

nutella Grin

update

well dh tried to ring them last night to query it, as there is no point me speaking to them as I will end up having a go and being too pissed off to take anything in they tell me anyway

he was on hold in the automated system for about 20 minutes then there was a recorded message saying, we are too busy to speak to you, goodbye!!! then he got cut off

piss taking CUNTs

OP posts:
HarveySchlumpfenburger · 22/07/2014 09:07

That sound typical and a total PITA.

OP when did your DH take his pay cut and what, roughly, does it say he earned for 2013-2014 on his p60?

Original poster
littleSpud · 22/07/2014 09:25

rafa his new job, and pay cut, started on 11 july

his earnings for 2013 - 2014 on his p60 are 31998 exactly

OP posts:
HarveySchlumpfenburger · 22/07/2014 10:09

Then I don't think they have made a mistake. What you need to ask for is a current year calculation based on what you predict he will earn this year. They should be able to do this for you, but I wouldn't hold your breath on getting through this close to the renewal deadline date.

If you do this and you end up getting a job, which increases your predicted income then you absolutely must get them to recalculate it again because you will end up being overpaid and have to pay it back at the end of the year.

Original poster
littleSpud · 23/07/2014 09:57

Oh crap really rafal Sad

That is really shit, I suppose it's still worth calling them (if We can ever get through!) but at the same time I don't want to risk an overpayment Confused

OP posts:
Snatchoo · 23/07/2014 10:07

It is definitely worth trying them again. Every year of claiming aside from this renewal I have asked them to use next year due to pay change/maternity etc.

They will be busy now though due to renewals finishing next week.

Snatchoo · 23/07/2014 10:09

Oh, and try say no to 0870 for an alternative number. THey will tell you off for using it as only overseas folk are supposed to use it, but normally they will allow a couple of calls before they unceremoniously tell you to call back using the 0870 number!

What a joke, nothing gives me the rage more than trying to call them and having to hold for half an hour then THEM cutting me off! Angry

CrystalSkulls · 23/07/2014 10:11

This reply has been deleted

Message withdrawn at poster's request.

HarveySchlumpfenburger · 23/07/2014 10:43

If you happen to call the 'overseas' number from a mobile and tell them you are calling from abroad you can avoid the telling off.

I think you will only get overpaid if your income increases and you don't tell them so they recalculate it. Do check first that they will allow you to do more than one current year calculation in a year though. Otherwise you should be all right.

SoonToBeSix · 23/07/2014 11:01

Tax credits number is 03 so included in free minutes on mobiles.

VioletHare · 23/07/2014 11:05

Be very wary of providing them 'expected' earnings for the coming year, after an income drop. And don't always trust what one person working there tells you, because some of them are rubbish.

We got stung with tc massively in 2008. Dh's salary for the previous year was about £40k so we'd been getting a minimal amount. Then he opened a business, he was making only tiny profits due to various factors and we went through about 6 months where household income was about £400 a month, and we ploughed through all our savings.

I called them about 6 months into the tax year. We were expecting profits to increase and his income for the whole year to come in about £20k. So I gave this years income as approximately £20k.

The girl on the phone would only focus on what he was earning NOW, which was about £400 a month, giving an annual income figure of about £5800. She assured me that as (at that time) there was a £10k disregard on inc

VioletHare · 23/07/2014 11:09

Income higher than provided, we may have a slight overpayment but nothing drastic. Fine.

The end of the year comes, dh's income comes in bang on £20k...and then we are told that sorry, the £10k income disregard only applies when your tc are worked out from the previous years income, not when you give a manual income estimate for the current year.

We had been overpaid by about £3k, all because of one incompetent wench on the phone not understanding the disregard process.

Original poster
littleSpud · 30/07/2014 09:49

Hi all I just wanted to update

Dh rang and queried it the other day (and actually got through!) and they have recalculated and have added another £20 a week. No idea how or why. But not complaining Wink (well unless that ends up being wrong and we end up having to pay it back!)

Fucks me off though, how many people must just accept the figures they tell them when they should be getting more Hmm

OP posts:
BeaglesOfDeathMetal · 30/07/2014 10:09

the overpayment possibility gives me the massive fear.

DP is building a business also, and we've approximated his profit before tax as about £14.5k. I was told by one of their advisers that the figure we gave should be calculated this way.

HMRC then disregarded this and decided, with no explanation that they would use a figure of £16.5k.

When I called to query, they told me that I should have given them his income before expenses and tax and that I was risking an overpayment if I didn't re-estimate

Confused
Bigglesfliesundone · 30/07/2014 10:15

I mentioned this on another thread. We earn just over the cut off (which I have been told is £30,000 for two working, 2 kids??) and get nothing at all. If I drop my hours by 7 a week we would get £3.00 more a week than if I stay as I am!! Oh, and we appear to owe the over £5000 from 2011. Confused

GerbilsAteMyCat · 30/07/2014 10:24

We dealt with tax credit compliance last year after some great fun with them. The guys admitted that even after 14 years in tax credits he frankly had no idea how some of the calculations were worked out, that many of the algorithms used had been done by an external company and that some bits of the process were a black box.
It strangely made me feel better...

Bigglesfliesundone · 30/07/2014 10:44

There you go simples Confused

kazza446 · 30/07/2014 11:02

I rang them to enquire about our eligibility as I was on mat leave and decides to quit my job due to bullying from my manager. I explained that our circumstances had changed and we would be expecting a £30k cut in income. I eventually got through ten minutes before they closed and was politely informed that we could apply but because of last years income it "would hardly be worth my while applying for the amount I would receive!" I'm sorry but when you are skint, every penny counts!

EverythingIsAwesome · 30/07/2014 11:37

Your new amount sounds wrong, we have 3 kids, DH earns £27k and we get £96 a week.

Fairylea · 30/07/2014 11:41

I don't understand any of it either. Dh earns £15500. For the last 3 years it's been the same. No overtime etc. All p 60s the same. Last year we got £140 a week. This year we are getting £124 a week. No explanation. I rang to query and was told the amounts were correct?!!

EhricLovesTheBhrothers · 30/07/2014 11:57

Has anyone pointed out that they disregard the first £5k of a drop? Meaning the salary has been calculated on a £5k drop not £10k. I think £20pw per Dc is the most you can get over a certain income if there are no childcare costs so it's not a surprise that OP tax credits haven't gone up much.

EhricLovesTheBhrothers · 30/07/2014 12:00

Sorry it's not £5k is it it's £2.5k

Babyroobs · 30/07/2014 12:01

If you have a significant drop in income they disregard the first 2.5k drop so your award should now be base on your dp' new income + £2.5k. They will have based your new tax credit award on last years earnings so you need to ring them with an estimate of your household income for 2014-15 and they should adjust it accordingly. If your dp has only very recently dropped his income you ned to bear in mind that he has already worked 4 months at his old ( higher) income.