To think this is unfair?

[DonVitoCorleone]

My DPs work colleague/friend earns the same amount as my DP. His wife also works full time. I work 30 hours a week on min wage (she earns more than me)

They earn about £40K between them (which is a good wage around here) and they have no childcare costs.

They claim tax credits.

We earn around £5K less than them and have been told we are not entitled to tax credits as we earn over £30K between us.

So, if £30K is the threshold, how come they are entitled and we aren't? Same goes for a few other work colleagues that DP has spoke to

That is unfair. You are right.

They have more kids? Or they are being paid erroneously and will soon get a great big bill from HMRC.

I'd say you don't know the full story & there are details that you are unaware of.

How do you know so much about their finances? I have no idea what the threshold is but can't imagine it woukd be applied differently to different people, there must be some further relevant info you don't have

Do they have more children than you? are their childcare costs higher?

The person could just be fibbing too!

Or they could be lying about wages?

There are set criteria for tax credits, so they won't get more than you under the exact same circumstances if you earn less.

Perhaps they both pay large amounts in pension contributions which takes their income below yours?

Most tax credits are calculated on your previous year's income. So if she and/or her husband earned significantly less last year they will get the payment in this year. It's not likely to be an ongoing entitlement.

This is quite a good friend of DP, they have talked money, they compared P60's and earned the same. His wife works full time in a decent job.

They definitely earn more than us.

We have the same amount of kids and neither of us have childcare costs.

Their situation is the exact same as ours except they earn more

Why are you concerned with someone elses finances? It's fuck all to do with you.

Perhaps they both pay large amounts in pension contributions

Not sure about the wife but i know my DP pays more into his pension that the husband (not by much, but still more than him)

Why are you concerned with someone elses finances? It's fuck all to do with you

I don't care about their finances, i care that for the last 6 weeks we have struggled and haven't had tax credits to fall back on, and wonder why somebody in the same situation would have those tax credits.

If they aren't paying any childcare costs then I don't think they should be getting anything!

Seeing as they compare payslips etc, why doesn't your DH just ask him how come he gets tax credits??

Well if it's all exactly as you say it is then yes it's unfair so one couple is either getting overpaid tax credits or you are not getting what you are entitled to.
However if they are getting overpaid then you need to back off anyway, not really any of your business and it'll come back to bite them on the bum eventually.
When I was a single parent before I met my now DH I lost all my tax credits when I started earning over £30k so your situation sounds right.

If they're that comfortable discussing wages why don't they discuss the tax credits?

Based on two children with no childcare and a household income of £40k, they would be entitled to zero.

Based on the information you have entered, your household may be entitled to the following tax credits award:-
Child Tax Credit £0.00
Childcare element of Working Tax Credit £0.00
Sub total £0.00
Working Tax Credit (less the childcare element of Working Tax Credit) £0.00
Note: The childcare element of Working Tax Credit will always be paid direct to the person who is mainly responsible for caring for the child or children, alongside payments of Child Tax Credit.
Total £0.00
This is based on your household income of £40000.00.
This is the amount your household may be entitled to from 24/06/2015 until 05/04/2016. This result is only an estimate and is based on the information provided assuming you make the claim on 24/06/2015. This means the amount shown may not be your entitlement for the full year.

The amount may change when your claim is processed and in certain circumstances may be paid from an earlier date (up to a maximum of 1 month) where you (or your partner if it is a joint claim) satisfied the requirements for entitlement.
Even if you think that you are unlikely to be entitled to an award at this stage, you may wish to claim anyway in case your financial circumstances change later in the year. This may mean that you become entitled and we may be able to backdate your claim.
To make a claim

If you're new to tax credits, you can order a claim form online.

You'll need a National Insurance number. If you don't have one call the Tax Credit Helpline instead.

The claim form will be sent to you in the post. It will take up to two weeks to arrive.

If you're already claiming tax credits you don't need to order a claim form. Just call the Tax Credit Helpline to update your claim.

Our household income is half this and we don't qualify for WTCs. I don't understand it either.

Do they have a baby as you get more for the first year usually.

I wouldn't have though either of you would qualify unless it was for childcare which you don't seem to need. Are you sure she didn't mean child benefit?

We don't get tax credits either so I would be a bit miffed if someone else in the situation did.

If they are getting them by mistake they will have to pay back though.

Clearly they are claiming in error or fraudulently.

I'm just going to assume they are being overpaid then and will have to pay it back. Id rather do without than get a bill bill at the end of the tax year. Just threw my renewal pack in the bin, no point filling it out if i know we're not entitled.

Unless, as a PP said, they are getting confused with tax credits and child benefit.

sounds fraudulent to Me

I'm not surprised you're trying to figure it out.

I think the wife might have mislead you about how much she earns, or they have more children than you do. They must have mislead you about something. And, tbh, they're obliged to give you any detail of their finances. But, with what you do know something doesn't add up.

We have a similar income and receive tax credits. But we have a disabled child who receives the top care rate of DLA - this entitles you to more tax credits. Could this be the case here?

Don't forget the base it on last year's earnings so if she earned less last year than she is doing this year, that will affect it.

Also if anyone in the household has a disability then they may well get more.