Really stressed re tax credits, does this sound right?

[sherby]

Last year DP was out of work so total taxable ss benefits were £7864.

He went back to work this year on April 10 so I informed them that his income for this year will be £26000.

We have 2 DC one getting baby element until Aug. I am SAHM so we have no childcare costs.

We just got our award and they are going to pay DP WTC £291 every four weeks and pay me £393 every four weeks CTC.

This is way to much money isn't it? I have phoned them twice and asked them to check the award and they just keep on saying no its fine that's how much you are supposed to get we will sort it out at the end of the year

But this seems like way to much money and I am stressing that they are just going to ask for it all back at the end of the year. Plus they keep on sending us random cheques, two last week one for £205 and then another for £53 (no letters with them I had to phone to see if they were from them ) apparently these are from an underpayment last year.

Anybody know if this sounds about right?

TIA

I think they base it on last years income dont' they ?

Hmm that does sound alot.

When I was with XP and he was working, and on around £15000, we were getting about £20 a week WTC and £100 ish CTC, for 3 children.

yes that sounds a lot as you have no childcare costs

I would contact them as they will make you repay it if they over pay you..

it could be right though

They told me they are basing it on last years income even though they know that we are earning more this year

Next year they will base it on the 26000 he gets this year

Probably is right, because the system works on this stupid arrears basis.

Good for you this year, but it will hurt you next year when your TCs drop through the floor in comparison (on £26000 you would be looking at more like £200 per month)

I would suggest you try to bank as much of it as you can afford to, in a high interest account. If and when they demand it back, you will still have the bulk of it and you will have benefited from the interest in the meantime.

I've just run some quick figures through Entitledto (obviously had to guess a lot of stuff but your income for 07/08 was the most important bit) and the figures came out pretty close to those you have been quoted.

They work on last years figures as StG said.
We have a similar thing. So we'll get lots this year and next year it will drop a fair bit.
Keep a record of when you called and if possible get their name.

Thanks for the help

I think I will save as much of it as we can incase things do go bad. What a weird way of doing things though

www.hmrc.gov.uk/taxcredits/calculator.htm
might help you out. I got in a real mess with this last year - husband left, no income, suddenly needed childcare etc and ended up having an HMRC investigation and a request to pay back a previous years overpayment (like I didn't have enough going on). It really is worth noting every name and conversation then stuffing it all in a file. One policy they do seam to stick strongly by is if they've overpaid you they wont cause hardship by clawing it back i.e. they'll give you notice and spread repayments (generally these are actually deductions off future payments) over years if necessary.

Congratulations to you and your DP on his job. Thats whats important I remember that great feeling of money coming in on a regular basis. Don't let it stress you out too much - I did and when I phoned and told them it was completely stressing me out, and how confused I'd become with it all, they really reassured me especially about how over payments would be taken.

Best of luck with it all. I did once find a really good 72 page document with all the ins and outs of it but I can't put my hands on the link now!

Thanks for that ANTagony, I'm just glad to have him out from under my feet

We are on £25,000 with three children and I get £146 a month,our income hardly changes as its made up of three pensions.