To ask about tax credits?

[NillyFrickers]

I get child and working tax credits, I read that they were going to increase the amount you get during coronavirus pandemic but this month mine has decreased by almost £20 per week.

Can anyone explain why this is? I'm also on furlough so recieving less wages too and now I'm stressed.
I don't really understand the benefit stuff.

It’s probably gone down as the financial year has just ended.

No idea about the other stuff though sorry.

It’s rolled over onto a new tax year so have they decided you’ll earn more this year? You can log onto your government gateway account to check the amounts. You’ll have to wait for your renewal pack to see what they’ve guessed your earnings at though I think.

Yes normally it changes slightly first payment after 6th April. Not sure about the corona virus but I did notice an extra payment went in for me last week - not sure if it was an adjustment due to end of tax year or some sort of corona payment?? I didn’t get a letter about it just noticed on my bank statement.

I've had the same and curious why.

Use hmrc app and usually you can see why

@Waveysnail I downloaded the app, I can see it's the working tax credits that have decreased , but it doesn't say why. Unless I'm looking in the wrong place?

It's normally because payments are based on the last tax years earnings as declared via HMRC. So even though because of covid you're earning less this year it doesn't take that into account unless you declare your income will drop by a certain amount or more. I think it used to be about £3000 difference either way across the year. When you're renewal comes through you'll be able to declare that it's dropped. I know you used to be able to phone up to tell them it will drop/increase outside of renewal time but not too sure with the current situation.

Obviously I could be wrong as have been on UC for a while now so things may have changed.

It's a major flaw as your almost paid your entitlement figures a year in arrears if that makes sense. So in theory if your earnings this year are lower your payments next tax year would be higher.

You're*

As everyone has said it's a new tax year. Last year you may have been being repayed a small overpayment, or you might have earned more last year than you did the previous year.

If you think you'll earn less this year you can update your earnings on the app or by calling them but be careful about underestimating because you will have to pay back any overpayment.

Is it because the minimum wage went up again on the first of April?

Mine have increased I didn’t get wtc before but getting £35 this week then £65 per month and Ctc gone up need to check my renewal info make sure it’s right but hate it as don’t want to end up paying £ back 😬