Tax Credits - another question please shed some light on this for me?

[sweetkitty]

First baby DD born July 2004, applied for Child Tax Credit which we got (£80 a month) they based this on DP and I's combined income for 2003-04 which was fine as DP was doing a masters for most of it and only working PT. Think our combined income only worked out at just under 40K.

So this year they sent us the reapply forms in September and asked for our 2003-04 income and 2004-05 income. Cannot remember what our 2004-05 income was but it wasn't more than 40K as I was on maternity leave and then gave up work. When I got the award back they are still basing it (we get £38 a month have lost baby element) on our 2003-04 income despite the fact I have told them I am no longer working.

Why would they base our tax credits on my income from 2 years ago? Surely say if you were on 50K then dropped to 10K or became unemployed they wouldn't do this?

Am just about to have DD2 in a week and will be reapplying to them but will they base it on our 2003-04 income again? Is it work phoning them to discuss it? Also is complicated as I cannot find our P60s from when we moved so cannot remember how much our 2004-05 income was although I have told them.

Is it just me or as they are the inland revenue why can't they use your NI number, find out how much you earn and calculate it that way each year?

Phone them, I did and they sorted mone out really quickly over the phone (havingf completely messed it up before) Do bear in mond that you get more for a child under 1 though (confused me for ages)

I can understand losing the baby element but not why they are basing it on our joint income from 2 years ago?

that's what they do- it's barmy. If you can't find your p60 just put a rough guess down. That's what i had to do- i rang them and asked them and they told me to do that

I know what the 2003-04 figure is and had the P60s when I told them the 2004-05 income so they have the figure on the form I sent them back but don't want to use it!

But what if you just made up a figure then and said you earned 10K that year, how would they check it?

What a great system eh?

IIRC on the renewal forms they send out you can put an estimate of what you think your earnings were. It sounds mad but it seems to be the way they work!

you can update it anytime as your circumstances change thought can't you? thats waht we did

So I can phone them up when DD2 is born say "we have had a baby and this is our estimated income for 2005-06 (which is easy to work out as it's just DPs salary) and they will recalculate it for us"?

i claimed in march (ds born in feb) and they based it on previous year 2003/2004
then in new tax year they based it on 2004/2005
for this year
then when i went back to work and ds went to nursery i told them of changes and it changed again
hope that helps
ps yes, ring them

Thanks I'll wait till DD2's here and phone them with all the changes.

That's what I don't understand why they are still basing it on 2003-04 for this year and not 2004-05?

why not give them a bell and ask now anyways? if you are right (and it sounds like you are) then they normally change it tout suite!

But they may ask for 2004-05's earnings again and I cannot remember and cannot find the P60's since moving grrrr! They should have them though!

Knowing my luck though they will recalculate and I'll end up owing them money!

Hope you get it sorted out asap,they have always been very helpful when i have phone them