Huge concern over benefits! Please help

[DukeOfSmellington]

I've just seen another thread and it's triggered me to ask MN, since I've asked Tax Credits and they're saying 'the computer calculates it so of course it's right'.

I'm a single mum. 1 DC. Childcare costs of around £130 a week, so £500 or so a month.

I get around £330 in tax credits every month.

I earn £30K a year.

Would you say this is accurate?

I'm frightful I've been overpaid. It seems too generous an amount.

Sounds a lot to me, but overpayments are common. I'd ask them to recalculate and if you have been overpaid then ask them to set up a repayment plan, obviously interest free. They'll let you pay what you can spare provided you're paying back. I've always been scrupulously honest regarding circumstances and they somehow overpaid me £900

Sounds normal for childcare for two children .

Have you tried the entitledto.co.uk website? It’s quite accurate if you know all of your amounts. Has your payment changed since after June/July when they would have assessed your yearly income from April?

Thankfully, I've only just started receiving them since going back to work after a year off with my DC!

Thanks kitkat. I think it's horrendously unfair how they can over pay, with it being entirely their fault due to miscalculations, yet then demand ££££ back at a drop of a hat

Sounds normal for childcare for two children

I have 1 DC

Sorry I misread wouldn’t be normal except you say you have just gone back to work. TC are based on last year and April to April. Therefore you income is not 30k.

You're entitled to 70% of childcard costs aren't you so doesnt that sound right?

You need to update your projected earnings for this financial year to be entirely sure. April 2019-20 you might be earning £30k but April 2018-19 you shouldnt be if you've just gone back to work? Tax credits are worked out over earnings within the tax year and divided by the months remaining in that tax year from your claim. It's not monthly pay based like UC is.

For 1 DC I thought the CTC limit was under 30k or at least it was when I was a single parent to 1

Sorry I misread wouldn’t be normal except you say you have just gone back to work. TC are based on last year and April to April. Therefore you income is not 30k

My understanding was that only calculate it as last year's income and give you the money based on that if your income doesn't go up more than 2K. Which it has.

Also, if I put my details into entitledto.co.uk, and enter the details as if I've been earning £30k since last year even, the amount still comes back the same

For 1 DC I thought the CTC limit was under 30k or at least it was when I was a single parent to 1

Yes I also thought it stopped at £26,000 for one child but could be wrong.

Just had a look, the annual household limit for 1 child is £40K!

The childcare makes a big difference to the amount.

For one child you can get up to 70% of £175 (so a max of £122.50).

I don't know about childcare but the threshold for 1 child is £25000.

I don’t think childcare changes the limit. I was paid overtime one year and lost my award for going over £24,000. Maybe you should call HMRC and double check .... you don’t want to get hit with a massive overpayment