tax credits!!!!

[rosieanon11]

I hate tax credits and have nothing but issues with them.. anyway...

I am currently working from home, since lockdown. Going back start Aug. After-school club has been closed, though no word of whether or not they will invoice. So I have not paid childcare.

My kids are going back to childcare 1 Aug, unsure how much for, could be all month could be 4 days.

How on earth do I work out my childcare for tax credits? I've seen various ways - add up what I anticipate to pay over the next 12 months, add up what I paid over the previous 12 months, put as 0 then update weekly...my costs will be estimates for august and then regular from september, so I am so confused! Gov.uk checker said my costs had gone up and to inform tax credits based on estimate for next 12 months, but at the minute they are 0?!

I had an overpayment of 9k last year, which I am adamant was their fault so I don't want another!!! I am a key worker, but shielded hence not 'working' outside the home...

To date, tax credits have:

1. Removed all childcare providers then told me I did it???
2. When I asked to change my hours to 50 as I started a new job they changed to 16?!
3. They removed one childcare provider for no reason and said it was an error
4. I changed my weekly costs to 222 and they put 0
5. I changed my salary from 17170 to 17600 and they put 20222 (last month!!)
6. I left 1 of my 2 jobs and they put my hours to 0 instead of 37
7. I informed them of my job start date nad they said they had no idea, despite looking at my contract whilst on the phone to me

They never receive letters, updating on the app causes problems, updating online is the same, can never get through on the phone and at least 3 of the above errors happened after speaking to them on the phone!!!

I am now paying back out of my award and still have loads left to pay, I never argued it as it all happened a year after my ex partner died and 1 month before my only other relative died... mental health was not good so I just put up with it...pretty sure it's all their fault

Waaaay off topic but this is one of many reasons I oppose government ID cards - we cannot run admin in this country at all and no-one cares.

its so true. every time I phone I confirm at least twice the changes, so how on earth they get it so wildly wrong I don't know!! When I updated my salary I know for certain I entered it correctly, and yet they came up with £20,222 which is sooo bizarre given I have never, and would never earn that!

If you had an overpayment of 9k last year then you won't get any tax credits this year will you?

Can't you just tell them the monthly childcare bill from now until April when the tax year ends?

I get £150 per week, for 2 children plus childcare element. A tiny amount (£8 ish?) is working tax credits. I have already been paying back the overpayment for 18 months or so.

I always assumed it was childcare from now til April but the websites are so confusing, the gov.uk checker asks for the next 12 months costs?! But I assumed tax credits were worked out April-April?

This is an absolute nightmare!!

My childcare from August-August will be 10 weeks holiday care (£320 per week) and 39 weeks after-school (£90 per week) .

I agree with you, OP. I hated tax credits. UC much easier/transparent, IMO.
Do you rent, OP?
UC is much easier to update/follow their calculations. UC is better for renters though rather than homeowners.

I don't have anything much constructive to add, but tax credits are an honest to god nightmare.

I had to repay around £8,000 or something like that? I appealed it and jumped through countless numbers of hoops to try and find out exactly why I was due to pay this money back to them despite constantly keeping my records as up to date as possible.

After hundreds of hours of phone calls, I got someone (apparently) high up who actually outright said and admitted to me that it was nothing I did. It's a system designed to fail. If you make any changes regardless of what they are, you will end up with overpayments.

I was shocked & so wish I'd somehow managed to record them saying that because it's an absolute disgrace.

voldemortsMaid - I am not surprised at all, I am pretty sure my overpayment is the same! It's a lot of money as well!

Lifeisabeach - I am a homeowner.

I have heard nightmare stories about UC too, like people being worse off. Can't win in either system!! Really need the extra help though as I'm a single (widowed) mum, the only childcare I have is paid. Nightmare!!!

I hated tax credits so much. Error after error after error.
I started claiming when ds1 was born. They then decided I had been overpaid by the whole amount so I owed a years worth of TC back to them. I paid this back month by month whilst disputing that I owed it. (I was a sahm, then dp was earning about 12k)
It took about 6 years for them to realise it was there mistake! Apparently I'd given birth and started a new job the same day. But they said as it had been more than 5 years since the mistake it was too late to claim it back

OP I'd seriously get a benefits check to see if you would be better off on UC. It sounds like you would be one of the few people that might be better off on UC. As you are a home owner your work allowance is higher and you can claim a higher percentage of childcare costs than you can on TC. However, with childcare they always pay you in arrears, so you would have to pay the first month of childcare costs out of your own pocket.

would I be able to change to UC if i am still repaying tax credits overpayment?

I am billed termly for after school club and weekly during the holidays, would this still work?

I'm no expert on this - there are some ladies on here who do advise on benefits - hopefully they'll pop on soon. I'm sure the tax credits over-payment would be taken out of your UC. I 'think' the termly billing would be worked out as a monthly amount - not 100% sure on that.

Have you tried one of the online calculators? Make an appointment with local citizens advise and they should be able to run through things with you.

UC works in real time, so if you earn extra one month then your UC just gets reduced - you don't end up with a massive over payment!

@rosieanon11

would I be able to change to UC if i am still repaying tax credits overpayment?

I am billed termly for after school club and weekly during the holidays, would this still work?

Yes and yes. They’ll repay the days used and paid for in that month of UC. Don’t use the calculators on entitled to etc though as they aren’t super accurate. Get some proper advice.

If you had an overpayment of 9k last year then you won't get any tax credits this year will you?
I have a close relative who gets £38k a year, a 9k overpayment would not stop many claims. @bettsbattenburg

@AldiAisleofCrap

If you had an overpayment of 9k last year then you won't get any tax credits this year will you? I have a close relative who gets £38k a year, a 9k overpayment would not stop many claims. *@bettsbattenburg*

38k in tax credits????!!!! Bloody hell, I need more children!

Join universal credit essentials on facebook, they have an accurate calculator and the admins can answer any questions.
I hate tax credits, I had a massive over payment which I was repaying and then this year when everyones amount went up mine went down because of more over payments, they dont tell you what it is or why but I've updated at the right times, I dont think even they know how they work it out.
That left me with not enough money to live on with only 80% furlough wages so i claimed universal credit and im much better off.
They will take my over payment from universal credit but there's a debt holiday at the moment because of the virus situation.
I prefer it, even if i wasn't hundreds of pounds a month better off i would still rather not have overpayments and I can work it out each month what I will get before they even upload my statement because its transparent.

@bettsbattenburg
38k in tax credits????!!!!
Bloody hell, I need more children!
Am sure children’s service would love to hear from you. My relative only has to birth dc , her and her dh adopted four disabled children, hence the high tax credits. Her dh works so they claim childcare costs for the youngest as df is a carer to the other dc.
They are actually saving the state a fortune!

*two not to

*And dn not df!

Oh yes I dread renewal every year. One year I was audited & had to send all docs (not even copies) of car ins, tv package, phone bills plus my renewal pack to NI. In that aug I didn’t get any TC/WTC no warning. Apparently because they didn’t get my renewal in Preston everything stopped. For 4mths. Eveytime I called ( which took hrs or days ) they insisted it had been sorted. Totally brassic for 4mths. All they said was I should have sent renewal pack to Preston. Yeah ok - audit letters were full of threats of TC withdrawal and full repayment of any monies I’d ever had if I didn’t fully comply immediately! One time Forgot to tell them I had changed jobs ( different school but same employer being the LA) salary was the same. I realised after 3mths. Phoned to tell them. Was properly told off by call handler for nearly an hr who again threatened with repaying all monies I’ve ever had, then after an hr said he would speak to his supervisor and came back nice as and said it’s ok this time. Like being told off by my dad. And last year I got new job with salary increase so called , when I got the adjustment notice they had put £1700 as my salary not £17000. When I got through after hrs of trying, the call handler told me “that is really bad” I agreed and hoped he could help me he replied what did I think he could do about it ? He didn’t seem to know.
Totally grateful for the support given but will be so happy when I don’t have to claim-
Good luck!

Honestly, with so many issues, could it be that they’re updating wrong account or something? Is your name particularly popular?

I think that if you move to UC then you have to pay childcare upfront.

This is where UC wins out. It's calculated monthly in arrears, so as long as you accurately tell them about your income and circumstances for the previous month it's pretty much impossible to be overpaid.

No hoonim this is just how the system works. Very crapply.
Its designed like that.
Ive got a completly unique name thats not why they fuck it up, they dont just use your name anyway its linked to national insurance number and tax account.
They make it hard to claim, difficult to understand to scare people out of claiming.
I stopped claiming housing benefit for the same reason, for a small amount it just wasnt worth the bother.

I requested the recording of when I called to make changes. I knew I'd given accurate information. The recording proved I had and I did not have to repay the overpayment. Money they had deducted from that year was paid back.

I'm pretty sure if I add up every penny during the overpayment period, even the basic element I'd get if I was unemployed, it still wouldn't amount to 9k.

It's enough to drive you insane