Child tax credits - different to online calculator

[eebagum]

We've been claiming tax credits since my eldest was born, through low income, maternity leave and pay rises, the amount we've been entitled to over the years has been up and down.

Now after child no 3, I am a stay at home parent, and my other half has a decent salary. Last year, his gross pay was just shy of £37,000, and thus year he's had a pay rise and has performance based bonuses at the end of the year - so we have informed tax credits over the phone his salary will be £40,000. We've received £24 per week CTC until now, and looked on the online manage tax credits account, expecting to show the amount we will receive from now on as £0, as this is what the tax credits entitlement calculator (the one on .gov website) says we are entitled to. However, it says all future payments will be £17 per week!

When we did the online calculation, 3 kids, £40,000 salary, it stated we would receive £0. 3 kids, £39,000 salary is £24 every 4 weeks. So why are we now receiving £17 per week? I'm worried we'll be asked to repay is at the end of the financial year!

Also should add - no other benefits received ,(other than child benefit) pension is salary sacrifice so only tax / NI / student loan taken out. Kids are all primary school age, so not got baby element etc.

I'd say it's because they go on last years income. I've always notified them of increases and decreases in my income but as they have never been more than 2500 either way they've never taken it into account until you are asked to renew the following year. Naughty really as they are basically paying you too much when you have told them but they will still want it back.

Personally if you are able to forgo it, I would cancel the claim. As if he earns more this year than he did last year then you will almost certainly owe some if not all of it back.

I've found the calculator to be pretty accurate, give or take a few pounds. Not everyone has the same opinion but for me it's never been far out

Exactly as above. You will most likely end up paying it back. Theres no extra child element for a third child. The cut off for 2 kids is around 32k so I dont understand how on earth you are still getting payments.

There is an extra element for a 3rd child if born before 2016.

Yes sorry there is a child element if born before April 2017 - I read it as it op had finished work with the third child recently. the cut off for 3 kids is around 38k so would still end up paying money back.

Yes youngest was born before April 2017. If I do the online calculation for his expected salary minus 2500 it seems to tally with what we are going to receive. I'll update his income a couple of thousand more so it says we're not entitled to anything. I said to the call handler about closing the claim, he said better to wait til end of this financial year. With his basic salary (36k) we would still get a little bit of CTC, and the extra pay that take him over the cut off aren't guaranteed (over time and performance based bonuses). I think we'll leave it open for now so if something does happen such as a job loss or off sick from work so doesn't earn the extras, we would still be eligible for some back pay. Thanks for all your replies!

OP I've had similar, where I know TCs have been overpaying and will want it back, despite me notifying them of all changes. I put the money to one side, ideally somewhere with high interest, until the renewal has been done and it's all in the clear. Tedious!!

@dustydoorframes good idea!

Best way to to it @DustyDoorframes

I never used to take into account my Xmas bonus as it isn't guaranteed. It was never very much but when I declared it come December (although it was far far less than 2500, I can't stress how much less it is lol) it always knocked the remaining months down a fair bit. So now I allow for it. Its much better to be underpaid than overpaid. The one year I was overpaid and they stopped my TCs until it was clear. Was a horrible 6 weeks!

I’m a single mum with low level physical disabilities. I resent qualified and got a job and the pay is £31.401 yearly. Before this I was on universal credit, but since I got this job they have cut all the help such as childcare, housing, even child tax credits. The only thing I get is my disability standard allowance and child benefit. I thought a person or couple should earn over £50.000 for them not to qualify for any assistance. I made calculations and it say I should be entitled to some child tax credit but as far as I know tax credit are not taking new applicants.
On top of being taxed highly I pay student loans and post graduate loans, higher NI contributions plus rent childcare and bills and I’m left with nothing every month.

@pink9252 I'm sorry to hear that, I can't give you any advice but it might be best to start your own thread and ask for advice so hopefully the people who can advise you will see it x