More Tax Credits/PAYE stress, suggestions please

[Springhasarrived]

Hopefully in the smallest nutshell I can manage ..........

In the tax year to April 2012 I was married for some of it and our joint and also my own income was over the tax credit threshold by miles.

From April 2012 my income is very low. ( I used to work in our own business and didnt have a job after ex buggered off till I finally found one for minimum wage in June). 7 days after I started the new job, as it states on Website, I rang and claimed tax credits. I was told I would get around £70 per week. They sent me out the form, I filled it in and sent it back. There were no questions that actually gave me a chance to explain the change in circumstances so unsurprisingly they then sent me an assessment say I was not eligible! I did the ringing and got through! and they said they would sort it and to look out for my bank statement as I would get money through to that quicker than the assessment notice.

Yesterday I saw on my statement they had given me £16.10! Still no idea how they have come to this conclusion other than they have actually assessed me on last years income but as a single parent even though I explained it all and the woman on the other end was very nice and seemed to have a handle on it. As I am only paid hourly we even discussed that I would guess my years total income as higher than it was likely to be in case I do more hours for holiday cover etc so I wouldnt have to pay any back.

Not sure whether to try ringing or wait for the assessment form? I am desperate for the money and I have to provide correct info of my income for the court as just had the First Directions Appointment for the divorce.

I am also getting taxed heavily on my pittance wage and basically the tax office said i would just have to wait to claim it back later in the year!! They were nice but it doesnt help really.

I am freaking out as I have my car tax, insurance etc coming up soon and I need the money..I also dont want to be badgered by the solicitors.

Any help would be gratefully appreciated.

Sorry to hear you've got this stress.
The system is appalling, thinks me.

Anyway, we had similar a few years ago - based on previous years income, we'd have got nada, but in the current year, were due £. I filled in the forms, and sent a covering letter about the changed circumstances. The first award letter was based on the previous year, and then we got an amendment. Is it worth writing to them, rather than phoning?

Why are you being taxed heavily? Is your tax code right? That shouldn't be based on last years pay, just on what is in that paypacket that month. Do you have a payrole department, and see if they can do anything?

Hope things start balancing soon for you

Can't help with the tax credits but with regards to your pay being taxed heavily. Your payroll department cannot change your tax code. They can only use the code given to them by HMRC so if you are on a higher tax code then get your payroll department to give you the phone number of the tax office they are assigned to and the employer tax ref number. Then call them and get them to redo your code. They will be used to doing this and it is really simple to do. If you give them your employers fax number they can usually fax through the change notice and your payroll would be able to change it. I have had to do it several times and ringing the correct office is usually quicker than writing to them.

Also if you google tax rebate forms you can download a form to send to the tax office which allows you to claim back any tax overpaid. I would send this off even after you have sorted your tax code just to make sure you get back any money due.

Hope you get it sorted.

Call HMRC to get your tax code changed for this year. I think you are saying that isince 6 April (new tax year) you have not been highly paid by your ex but on minimum wage. If you worked for a few days for your ex in 2012 then that will be included in this year's income for the tax code purposes.

As said above you can ask for a tax rebate at any time.

I do agree with the person above saying write. Have everythign in very clear letters sent special delivery and keep copies. Put all references on. Ideally send all documents each time again and again so no one can say they could not find them. You can look at tax calculators on line to see what your tax and NI should be on various pay levels (include income from your work for your ex if it is sinec 6 April 21012 as well).

If your tax credits are lower than you and your ex expected then he may be obliged to up his support to you - have a look at the financial consent order which would be part of your divorce if you have reached that state of the divorce yet and indeed if he is not paying and divorce not yet finalised financially you can make an application for interim payments by him pending the financial hearing in court about the divorce/agreement between you.

Thanks everyone. All great advice and I'll do all of the above today on my day off.

I did get through to Tax Credits just now and it seems they have got it right but for some reason the first credit payment is low but later this month I will be getting £250, and from now on a bit less but still yeah! I now feel I can take DS on an outing up to London tomorrow to see the free bit of the Triathalon without worrying that we wont have enough at the end of the month.

Thats also really helpful re the tax. My dear 86 year old dad will be delighted to hear that old fashioned writing to the tax office is the way to go. I am paying so much because I am still on the same code as when I was working in the business and they cant change it yet for some reason. They in fact sent me an even worse code at one point! I will ask my employer to sort if for me now.

Xenia, I had the FDR appointment at court last week. Amongst other things which went well Ex was told not to spend any of the money from assets he is disposing of before things are signed up. He has sold something for ££ and immediately treated him and the OW to TWO holidays. The judges directions have now put paid to any more of that. . Next appointment November so I should just manage till then, but my solicitor says he will have to pay me substantial maintenance and child support.

As an aside I think it is appalling that the Tax Credits I am entitled to are included in my income and therefore Ex will have to pay me less maintenance as a result of them. The reality is that the government are subsidising a man who earns a 6 figure income to pay less to his ex wife and child so he can carry on with the lifestyle he had before he left me. Its the equivalent of giving him his tax backin a way! Equally you could look at it that it is subsidising my employer. They pay me minimum wage and the government tops it up!

Thanks again everyone. I shall continue the day with more of a spring in my step.

Are you getting interim maintenance for you and separately for the chiidren? If you not your solicitor should apply now immediately on an emergency basis - no need to wait until November when it can be finalised.

On the tax issue there used to be tax relief on maintenance payments to a spouse - it was deductible from your highest rate of tax as an expense - this was in the 60s or 70s.

There is also an argument that couples should share tax credits 50/50 where both are not well off (most couples) and it is very very unfair to fathers who have children half the time tha tthey cannot split the credits and child benefit in two. At least you'll keep your child benefit whereas if they lived with your huisband he would lose it when the new rules come in. Anyway go forth and out earn him. It's much mnore fun. I earned 10x my ex (although that meant I paid out to him not visa versa on the divorce).

Now that would be a reversal of fortune for me to out earn him seeing as I am now in minimum wage job and he is taking 100k out of the business .

I didnt realise that about the tax credits and yes it is unfair to fathers who have the children half the time. I wo

My DS is 16 and about to go into 6th form so I have 2 years to up my income!

I am getting some maintenance/child support off him now. Not enough - the amount he gives me isnt even the amount he should be giving under CSA guidelines but as the cost of going for interim maintenance is so high we decided to go for the whole thing at once. I should manage being very careful till then once I get the tax things sorted.