Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

I screwed up my Tax Credits renewal

12 replies

SpidersAreShitheads · 18/08/2021 22:24

Because I am specularly shit at life admin, I failed to notice that I hadn't received my tax credit renewal pack. I've been getting tax credits for more than 10 years so there's no excuse for not knowing.

Today, I looked in my bank account and wondered why I hadn't received payment. I thought the system was down - but after a quick search, I realised that it was because I hadn't renewed.

They say they sent the pack out but no reminders via text, email or letter (which they normally send), and I didn't get the original pack. No excuses, I should have noticed it hadn't arrived. But I didn't. For context, last year it renewed automatically so if I had thought about it (which I didn't) I probably would have assumed they were doing the same again.

Spoke to HMRC chap on the phone this afternoon and he sorted out my renewal, and reinstated my tax credits. Huge relief all round.

He told me that it could take up to 21 days to reinstate the claim and pay me. Gulp. I work self-employed around two disabled kids and don't earn a huge amount so that's a long time to be without a large chunk of my income - but OK, I'll figure something out make it through.

But here's the kicker - although the tax credit claim is being renewed to follow on with no break, the payments I should get between now and when it's reinstated will be spread out over the year......

So, let's say I was getting £200 a week - if it takes 21 days to reinstate the claim, that's £600 I would have been normally receiving. They agree they owe me the money for that period, but rather than paying it as a lump sum to bring payments up to date, they now spread it out over the rest of the year. That works out as an extra £11 per week. So during the period that I would normally have received £600 , they will pay me £33.

A few years back they screwed up my tax credits claim (I hadn't forgotten or anything then - they lost the renewal even though I had phoned it in). They reinstated the claim and paid me the outstanding benefit as a lump sum.

If I wasn't already on a low income, I wouldn't be on a tax credits claim so suddenly being £600 down and getting £33 instead, and £11 extra per week for the next year to make up this underpayment - I just don't know how I'm going to manage.

Absolutely gutted. Don't think I could be kicking myself any harder for not realising the pack hadn't arrived. Just wondering - has anyone else here had their tax credit claim reinstated, and did it take the full 21 days??

OP posts:
Flowerlane · 18/08/2021 22:29

Did you have changes to report? Because I thought it renewed automatically unless you had to report a change? I could be wrong and maybe it’s changed now.

Iminaglasscaseofemotion · 18/08/2021 22:32

Have you got an one account for checking your payments? If not set one up now. They usually have it processed in a few days and that will allow you to log in and see your next payment date and how much they will pay you.
Sorry, I know that doesn't solve your problem but it mean you can check and might not have to sit and worry for a whole week until your next usual payment date.

SpidersAreShitheads · 18/08/2021 22:37

@Flowerlane - yes, normally I have to manually renew, regardless of the fact there are no changes. They just ask my income for the previous year, and that's it. Last year was the first year I didn't need to do anything, and it renewed automatically.

@Iminaglasscaseofemotion - sorry, I'm not sure what a One account is, could you explain please? I've got the normal HMRC gateway account so I can usually see my tax credits and self employment details online. The man said I would be able to see the payments they had scheduled once they had processed the reinstatement - at the moment under the Tax Credits part, it just says "you can't view this online" or something similar.

Basically, the sooner they process it, the fewer payments I'll have to do without - the longer they take, the more payments I'll miss now and will be spread over the rest of the year so I'm desperate for them to reinstate it quickly!

OP posts:
TheWristBoundLatexBitch · 18/08/2021 22:41

I did the same and also went through the same process as you. I was told backdated would come as a one off payment when they restart.

SpidersAreShitheads · 18/08/2021 22:47

Was that this year @TheWristBoundLatexBitch? It's happened before and they always paid me as a lump sum. This time though the man was at great pains to point out that the outstanding money would be spread out over the year which seems like an awful decision, and one that would cause most people on tax credits real financial hardship.

OP posts:
santabetterwashhishands · 18/08/2021 22:47

They told me it would take 21 days and it only took 24 hours x they also told me my payments would be spread but I got a lump sum x

Iminaglasscaseofemotion · 18/08/2021 22:48

Ah sorry OP, my phone does that all the time. I ment online account, but you do have that.

Iminaglasscaseofemotion · 18/08/2021 22:49

Meant 🙄

RyanReynoldsHusband · 18/08/2021 22:51

I can’t help with the tax credits but is there any more money from SE work? Hard to say without knowing what you do, but any unpaid invoices you could chase, sales you could have, discount on pre bookings, discount on lump sum hours if a package is paid ahead of time, anything like that?

TheWristBoundLatexBitch · 18/08/2021 23:50

@SpidersAreShitheads

Was that this year *@TheWristBoundLatexBitch*? It's happened before and they always paid me as a lump sum. This time though the man was at great pains to point out that the outstanding money would be spread out over the year which seems like an awful decision, and one that would cause most people on tax credits real financial hardship.
It was today
TheWristBoundLatexBitch · 25/08/2021 00:09

Just updating to say I received a payment just now.

Hankunamatata · 25/08/2021 01:09

Download HMRC app. Its much easier to track payments.

New posts on this thread. Refresh page