To ask for help with tax credits?

[Rowenaravenclawsdiadem]

Background

I earn 15k a year. DH has just been made redundant but had earned over £50k 2017-2018.

When I go onto tax calculator based on what he earned last year we are not entitled to anything. But his income is now zero.

I read somewhere that they take into consideration the money he has earned this year to date and this will be deducted from any figure. But our household income is now £15k which is not enough to cover the bills let alone mortgage.

I’ve tried calling but they keep saying call numbers are too high and then it gets disconnected.

Are we entitled to claim anything? We have 4 dc, 1 disabled.

Have asked for this to be move posted in wrong place!

Yes you are able to claim. Put in a claim with this years figures.

Do you know why they take the previous amount into consideration and not just do it from this point on. I just don’t get bloody tax credits!

The do it for the amount he earned this tax year. So April to next April. So it's possible that he's earned too much this tax year for you to get anything until the next tax year starts next April.

Its complicated becsuse they base it on last years earnings they will reassess if theres been a change in circumstances which there has, however if he has earned to much in the currant tax year ie last april untill next april you might not get much untill next apeill.

And they do it based upon the last tax year's pay as an estimate. Most people won't have a massive change in circumstances. However you do need to let them know if you change jobs or have a massive increase or decrease in salary or hours then they recalculate.

Depending on area you may have to claim uc not tax credits if it's a brand new claim.

You always need to report major changes in circumstances such as new job/losing a job/new income etc. That will trigger a re-assessment. But do check whether your area is still under TC or has been moved to UC. God forbid it has...

Jesus so what are you supposed to do basically when you are taking a £50k hit. We don’t leave beyond our means and we don’t have savings. Is there any other help we can get?

You can order the form online
www.gov.uk/claim-tax-credits

Make your claim
Then you will need to call them and give your current income figures

Well you’re going to have to take some sort of hit, TC won’t pay you £50k a year. If your outgoings don’t leave anything to be saved then something will have to give as they’re too high to continue.

They will only backdate it 31 days so claim ASAP

As Flutter said above, they can work it out on the current tax year alone, but that includes what your DH has earned so far this year. You could use one of the online calculators to work out what you are entitled to this year by putting your annual salary in, alongside the amout DH has earned to date, since 6 April (and assuming he won't earn any more before next April). They will also ask for last years salary details, but as long as it has dropped more than £2.5k it should be recalculated on this years alone.

Years ago my DH was made redundant at this time of year. He had earned too much to affect our tax credits for the current tax year, so we had to live off his redundancy payment and contribution based JSA till the tax credits kicked in 6 months later.

I know it isn’t going to pay me £50k a year but on the calculations I’ve put in we get zero help.

I will look into JSA he is applying for loads of jobs a day. Some paying hardly anything to help and I’m now working 2 jobs.

You need to get in touch with tc and tell them your situation. Did he get any redundancy pay? We earned 17,000 last year april- April less than usual and so therefore topped up £90 per week which is what we live off to get by weekly, family of four. So you will need to live within your means even if you do get topped up with tax credits. It will probably be a shock coming down 50k. On 65k combined a year I think you shouldve been able to save a little anyway? there's also a disability element for children but u don't know your personal circumstances. Good luck.

We have four children and dh pays maintenance for another child so 5 between us. I know we have to make huge cutbacks which we already have. But £15k doesn’t cover the mortgage and we have the bills on top of that.

If he's just been made redundant his current year earnings will be high. How much has he earned since April? How many children do you have?

Work out (from his p45) how much he has earnt this tax year so far and use that figure instead (plus your income). That’s what your award will be based on.

You would definitely be entitled to something on your salary alone but like others said it's what your dh has earned since April to date added to yours. Depending on the ages of dc you may only get calculated for two of them as I think they capped it after the second child born after a certain year. They won't take into consideration your outgoings or other child maintenance that is paid out, it's just a top up to a minimum amount the government sets as a basic standard amount to live off on lower earnings.

We have four children at home. They are age range between 11 and 16. My dd has Sen and I get DLA for her.

It is what is, but what he earned in the last six months isn’t going to carry us from this point onwards. I’m looking at JSA now and see if we can take a mortgage holiday.

The difficulty is, if you tell them your household income is £25k (6mo @ £50k) plus £15k - £40k and declare that, that won’t be right because if that had been your income since April you would have received 6 months of tax credits by now, which you haven’t.

I’m sure the correct thing to do is to tell them what your current income is as it stands right now. Then you’ll have received 6 months of no payments and 6 months of payments as a household with a £15k income which should even out at as 12 months at £40k.

Getting through to them is a nightmare. Worst case you’d have to pay some back when they recalculate, which takes them bloody ages (You send the information by end of July after tax year ends in April, they confirm in the October), and your DH should be back in a job by then anyway.

Your lender should be able to give two months mortgage holiday....
Look at what you can cancel in short term, ie now tv, Netflix, sky tv?
If you didn’t have child benefit can you claim that now?
Have you rung up? I’d do that and speak to to them... short time is he applying for everything out there? Supermarket... shops... Christmas jobs are 10 a penny out there at the moment...
go to an agency look for any temp work? He needs to just get anything short term to tie yourselves over!

Do you know why they take the previous amount into consideration and not just do it from this point on. They do it because last year's income is a definite amount, but this year's income is an estimate. So the theory is you're less likely to find yourself having to repay an overpaid amount.

When i was claiming tax credits, they would do it on current year's income if your household income had dropped by more than 15%. Now it seems they will do it on "current year plus £2500" and reconcile at the end of the year. www.entitledto.co.uk/help/change-of-circumstances

You can ask for it to be worked out on an estimate of this years income. You’ll
Probably get less this tax year, based on what your DH has earned this year to date, but it should go up in April.

Also, if your getting at least mid rate DLA, you’ll be entitled to the disability premium with is £250 per month.