Child Tax Credits

[WeBuiltThisBuffetOnSausageRoll]

We used to receive about £25 a month in CTC several years ago, but following a modest pay rise, we were reassessed for the new year and were told our new entitlement was zero, so that was that, and we got no more for a couple of years or so.

However, a few months back, we received a random £2 or so - and then, checking the bank account, we've had a totally unexpected £73 paid in today. Very welcome, but a real surprise.

I was under the impression that CTC was no more, having been replaced by the despised UC. Is it some kind of special COVID payment for all parents, or a past correction?

Any suggestions? Happy but baffled!

It depends where you live. Universal credit has been rolled out in some areas, others still have tax credits.
I would say don't spend it though. At some point, when you least expect it and can least afford it, they will demand it back, in full, immediately, and make out that you somehow fiddled the system to get it. (Bitter experience, moi?....)

I'm still on tax credits, I haven't been switched over yet because my claim is over 6 years old and I've had no change in circumstances.

It's the end of the tax year so they're adjusting all the payments. I had an extra £140 last week. Chances are you've been underpaid in the last tax year. They have also increased the elgibility threshold on how much you're allowed to earn by up to £20 a week due to coronavirus.

If I were you I would be very careful; don’t consider it “your” money to spend. They can and most likely will ask for it back at some point.

I think you should contact them to query it. Just because it’s in your bank account doesn’t mean it’s now “yours”.

I'm fairly sure it will be a past correction.

Improved systems at HMRC are throwing up a lot of (mostly small) anomalies. A couple of years ago, there was a whole swathe of these, and lots of people were receiving payments or overpayment notices as a result of retrospective corrections.

As you haven't had CTC for "several years", I can't imagine they've suddenly resuscitated your claim.

Universal credit has been rolled out in some areas, others still have tax credits

Universal credit has been rolled out in all areas and the rollout was completed a few years ago. However "managed migration" hasn't started yet, so unless the claim is closed, tax credit recipients will remain on tax credits for the foreseeable future.

The managed migration test that started in Harrogate last year has dealt with such a tiny number of cases that it hasn't been possible to say if it works or not.

Thanks, All - great thoughts and suggestions.

I think it must be a past correction, what with it being financial year end. The advice and caution about them demanding it back is wise, but I don't see how they could possibly suggest that we've claimed it fraudulently when we never actually claimed it in the first place! We haven't submitted any forms or made any representations whatsoever - we just accepted that we no longer qualified a few years back and just left it there.

I don't see how they could possibly suggest that we've claimed it fraudulently when we never actually claimed it in the first place!

They don’t need to say you’ve claimed it fraudulently, or that you even tried to claim it at all.

They could at some point in the future just write to you and tell you they made a mistake and you need to give them the money back, immediately and in full. It happens quite often.

Fair enough, then - if they do, they do. At least it's not thousands to potentially have to try to find and fail.

It just seems bizarre that we've effectively severed any association with the scheme and they might have randomly started it up again for us. I think it's probably the opposite: them having to pay us back following a previous miscalculation.

I could call them, I suppose, when I have a spare two hours to wait on hold....

Download hmrc app. Tax credit details are on there

Ah, thanks, Waveysnail

It just seems bizarre that we've effectively severed any association with the scheme and they might have randomly started it up again for us

That doesn't happen. You must have had an open claim.

Same happened to me op, I logged in to the government gateway and it shows I am suddenly eligible for £15 per week tax credits plus a one off payment of £56 which went in yesterday. I guess they must have slightly changed the threshold as we haven’t had a change of circumstances

UC has been increased by £20pwk for a year due to COVID, but also in line with the inflation rise at with the new tax year (benefits had a previous 4yr freeze). So it's likely its just kicked back in due to you having an open claim for a legacy benefit, and now being back in the catchment zone iyswim.

It could be that with the extra 1k ploughed into the scheme you're now eligible again. But won't be in a year.

That doesn't happen. You must have had an open claim.

Didn't you have to renew/reapply every year? We stopped bothering after we were going to get nothing anyway.