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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be worried about how much I receive in tax credits

106 replies

Mmmmbrekkie · 09/03/2019 08:15

Single mum
Two primary children
I work part time (24 hours a week)
Salary £40k a year (pro rata £24k)
£91 a week spent on childcare

Please see attached for what I receive in tax credit. I have been receiving this ever since I returned to work.

It seems very high.

I am saving a good proportion of it as worried I will be required to pay back.

Is this in line with what others receive?

I have rung hmrc and they have confirmed all my details and confirmed I am receiving the correct amount

I just can’t shake feeling that it’s too much

To be worried about how much I receive in tax credits
OP posts:
ShortandSweet96 · 09/03/2019 08:19

My SIL and DB are going through this at the moment.
Shes been receiving credit that was the same amount as you, DB works full time shes a SAHM. My SIL even rang them often to check she was being paid the right amount, they told her she was. But after a year it turned out she wasnt.

Shes not £6000 in debt with them, they want every penny back and they now have £10 between them after Bill's and food shopping has been paid.

It's been an absolute nightmare.

RJnomore1 · 09/03/2019 08:19

Try the gov.uk tax calculator. I ran the basics of what you say through it and got £475 every 4 weeks but I don’t know all your circumstances.

RJnomore1 · 09/03/2019 08:19

Tax credit calculator sorry

Processedpea · 09/03/2019 08:20

Seems high I had to pay back 5k be wary

Weebitawks · 09/03/2019 08:21

It could be right. How long have you been in your job? Basically I started a new job in Feb 2017, updated tax credits and started getting what I thought was a high amount. I even rung them confirm it and they did. Roll on Aprilish 2018, they tell me they've been paying me too much and I owe them 5k!

What the guy on the phone said was that while all the info was correct, they based the amount they were giving me in my 2016-2017 earnings (very little) and kept paying me that through 2017/18. He said what they don't tell you to do is call after the new financial tax year.

As I said it could be correct but they're fuckers even when they make a mistake and there's not harm in calling next month/may.

sunnymornings123 · 09/03/2019 08:21

I might be wrong or have missed something but I was under the impression that to receive tax credits your earnings/savings had to be under £16,000 pa but yours is £19,000 even after childcare - is that correct OP?

Invisimamma · 09/03/2019 08:22

That does seem like a lot. Just for comparison, we have two DC, DH and I earn around £33k between us and pay £60 per week in childcare. We recieve £90 per month tax credits.

Takeapolaroid · 09/03/2019 08:22

Yes seems high. I was overpaid £7k and am still paying it back several years on (£6k left.)

greyspottedgoose · 09/03/2019 08:22

I'm on universal credit so it's obviously different but I get about the same amount of UC in total including housing as you are getting, and my annual income is about 8k at the moment so yours seems very high!

DanielRicciardosSmile · 09/03/2019 08:22

It does seem rather high alongside what is a pretty good salary tbh, but if they've checked and told you it's correct than I think you have to take their word for it. Do you get DLA for either of your DC? As I know there's a disability element that you get in your tax credits if you do and that may explain why the amount is so high.

berrybubbles · 09/03/2019 08:23

That sounds about right for the hours you work and you have two children. They are subsidising minimum wage and it’s sort of a insentive to go full time/give you the opportunities you need. I need to change work patterns for a while (freelance atm) so I will be entitled to the UC version and it shocked me how much! I will only be earning £160 a week though. But if you’ve paid/are paying taxes then I don’t really see the issue. You enjoy it whilst you canSmile

Original poster
Mmmmbrekkie · 09/03/2019 08:24

Ah thank you
Will continue to squirrel away for likely scenario of payback!

OP posts:
Mumsymumphy · 09/03/2019 08:24

Yes its too much. They will claw it all back, if you can't pay it back they will pass the debt to a debt collecting agency and threaten you with bailiffs/fines/prison. This will be despite you repeatedly telling them the amount is wrong, despite you putting in a dispute, despite them saying they'll sort it, despite everything!

Can you tell I have beef with HMRC?!

I really recommend, if you can, putting it into a separate account. Work out what you should be getting and put aside the overpayments. They will, somewhere along the line, demand it back, probably at end of next tax year.

DanielRicciardosSmile · 09/03/2019 08:26

Also would add that DH and I used to get Child Tax Credit of £40 a month on a combined salary of less than yours (only one DC admittedly) and that was stopped a few years ago as we earned too much to get anything.

Original poster
Mmmmbrekkie · 09/03/2019 08:26

Yes I’m putting £500 a month aside

OP posts:
DanielRicciardosSmile · 09/03/2019 08:28

@berrybubbles £24k a year for 24 hours per week is definitely not minimum wage. That's only £7.83 an hour so more like £9000.

Wenttoseainasieve · 09/03/2019 08:28

@ShortandSweet96

They shouldn't be in hardship over repaying tax credits, they can and should rearrange with them to repay a lower amount. HMRC are usually quite reasonable about this if you complete a detailed income and expenditure with them.

Waveysnail · 09/03/2019 08:31

If you have changed jobs or increase on money get them to use an estimated figure for your income so.they don't use last year's stats if income was much lower.

Babyroobs · 09/03/2019 08:36

yes that seems ridiculously high even with childcare costs unless either of your children are disabled.

OldGrinch · 09/03/2019 08:37

It's definitely far too much. It says you are getting some of it as working tax credit. You are not entitled to working tax credit on your income of about £24 k the cut off amount for working tax credit is about 16k Shock

Kittywampus · 09/03/2019 08:40

Be very careful, they paid us too much despite me giving them the correct earnings figures. Now we apparently owe them £££ which means we are getting zero until it is all paid off. If they ever give me money again I will try to put the money in savings just in case they ask for it back. I would rather be poor than spend the money and unwittingly end up in debt.

MissingSilence · 09/03/2019 08:41

Seems a lot to me, I’m a single mum to one DD, have a mortgage and work part time (30 hours) take home after tax is only about 18k a year and I pay £600 a month childcare. They only give me £340 a month towards childcare as my salary means they deduct basically everything I’m awarded (about £900 before they take it away).

QuirkyQuark · 09/03/2019 08:43

I was overpaid when iwas a working single parent years ago. I had to pay back £4K despite me ringing to query itwith HMRC long beforethey demanded the money back.

Ivalueloyaltyaboveallelse · 09/03/2019 08:43

I have two children one is disabled child we get nothing near that at all. We get less than £200

Chocolatecoffeeaddict · 09/03/2019 08:43

I'd ask them to check whether it's right to avoid a massive overpayment.
I've been over paid and paying it back wasn't easy. Someone working for them hadn't done there job properly and we were the ones to lose out.