To be worried about how much I receive in tax credits

[Mmmmbrekkie]

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

That seems really high. I earn about 13k (part time) with 3 kids and get less than that(single parent). My kids are not under 1 though and no childcare element. Good idea to keep saving it for now.

I would be concerned that they are going off last year's figures and then next tax year they'll want it back.

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

When did you return to work? If you only returned to work in January for example then you will only have 4 months worth of your 24K.

They have based your amounts on your last years income. You will probably have to pay quite a lot of the money they are giving you back.

Christ. You earn 24000 and they give you that on top?!

That can't be right surely?

That's exactly why she's asking.

I got £475 as entitlement using OP's data. As she is setting aside £500 out of £926 she receives, I think she is on target to save the right amount to repay.

Dont wait for your renewal ever. Call them April 3rd to update them on the previous years earnings figure and what your predicted earnings are for the year ahead. NEVER trust they have their figures correct ever. Always work it out via the entitlement calculator.

• I'd spend it.

IF you need to pay it back its only £10 a month.

I'd see it as an interest free loan.*

It's not only £10 a month in all cases, it's all relative!

It's definitely not right.
We have 2 kids
OH works full time. Salary around 25k
I do not work and do not get any other benefits.
We get£160.00 a month

Not sure if it's the same now op, but I had a demand to pay back some I'd received in error. I was able to show proof of when I had notified them of my circumstances/changes in circumstances so they wrote back confirming as the fault lay with them, they were writing it off.

You don't have to let them base your tax credits on last year. You can ask them to do an 'in-year assessment of earnings', which means they base it on the current year, if your circumstances have changed/will change. I have always made them run on an 'in-year' basis.

It would be ridiculous if it was anywhere near correct.

With OP’s 24k salary, plus CB and the tax credits, it’s the equivalent monthly post-tax income of someone on £45k.

I have 4 children and receive an element for a disabled child, my husband earns 22k and we get £700 in child tax credits a month, no working tax. Yours definitley isn't right.
Neither is yours chocolate you should be getting circa £1240 every four weeks.

It's really shocking how many people are forced into huge debts through this, scandalous, I'm surprised they have been getting away with this.

It seems very high to me. When dh earned 23k and I was a sahm we had about £75 a week.

The threshold for Child tax credits is £26 000 household income. The working tax credit threashold is about £16 000 per year.

It’s not 26k it’s 40k plus .

What tinty said is right.

They calculate yearly. So, your salary is £24k. But if you start work part way through the tax year, they look at your earnings for the year. Which will be £12k. They give you an award based on that. Then, and this is where people really fall down, they calculate next year's award.

Only, they use the previous year's earnings to do it. So the previous year, you earned £12k, according to them. So they give you an award based on £12k. Except you're earning £24k. So you end up with a massive overpayment.

Even though you haven't had a 'change in circumstances'. So you haven't got anything to notify them about.

The only way to avoid this is to ask for a reassessment.

They won't tell you any of this of course. It's shit. OP you do well to keep some of this back.

I'm roughly on the same, although i work part time 16 hours basic pay i have 4 but only get tax credits for 3 mine is roughly 230 a week in total that's both working/childcare tax element and child tax. If you can save a little and it won't hurt your purse strings then I would maybe just incase, if nothing comes up about it then atleast you have a good rainy day pot

tbh we get more than that per month for 2 kids

we get £292 per week (£1168 per month)but i do have both kids on high dla so they get £83 each extra on top of a standard award which i think is £123 per week

the 2 adults dont work as we are on on carers allowance and income support and no childcare

Def think its too much

I have 1 child, earn less and spend approx £45 per month on childcare (2 days a week breakfast club).

Work 40 hrs.

Dont even get half of that

Following on from my last post. My tax credits come to £277 per month.

1 child-8yrs old
Work 40 hrs
£45 per month childcare
19k salary

Somethings not right..hmm

Definitely not right...my son and his partner have a combined income of around 20k, 2 kids under 3, they get around 300 per mnth. You are definitely being overpaid

It’s not 26k it’s 40k plus

Unless it's changed drastically in the last few years that surely isn't right. We earn much less than 40k and don't get any CTC at all.

I work 32.5 hours a week, just under £13000 a year. I have one DC and no childcare costs. I get £380 a month tax credits