TAX CREDIT CLAIMANTS OF ANY FLAVOUR - C'MERE. <Shouting to get your attention, not in irritation>

[snigger]

Right.

A bit of outreach work here.

As a current advisor, can I just sit you all down and give you your best shot at a trouble free renewal period?

I know there can be errors/bad advisors/renewal packs eaten by dogs, but if you follow this advice you have every chance of things going smoothly, and perhaps my colleagues and I will get a moment between calls between now and September.

(1) Your renewal pack will be issued before 30th June. Go write that on the calendar. If you haven't received it by then, phone up. Don't join the 1000's who clog the phone lines saying "Have you sent me mine yet? Didn't I do this last year?"

(2) If you've phoned up and given an estimate of your 2009/2010 income - THIS IS NOT A RENEWAL.

You've only done your renewal once you've received the annual review pack, checked that your details are all up to date, then phoned in with your income.

(3) Following on from that - PLEASE CHECK YOUR DETAILS ON THE ANNUAL REVIEW. So many people call three years later to tell us they're married/their childcare stopped a decade ago/their kids are all in work of their own. Check.

(4) Write down the date you phone in with your renewal. If you haven't received TWO award notices, (one for 2009/2010 saying finalised award, one for 2010/2011 saying award notice) within three weeks of your call - PHONE BACK.

(5) If you get an automatic renewal that asks you to check your income is within set bandings (eg "Was your income for 2009/2010 lower than £28000 or higher than £75000?") you don't need to call if nothing's changed and the income's within limits. If something has changed, or income's out, PHONE BEFORE JULY 31st - if you don't, it'll auto-renew, and there's nothing anyone can do about it.

(6) If you've claimed with a partner/partners, then on your own, at any point between April 6th 2009 and April 5th 2010, even just for one day, you have to renew each and every claim for them to be finalised. Make sure you mention it to the advisor - we're supposed to check, but it's crazy busy, people call in with a years worth of changes, and it's easy to forget.

OK. That's me. I honestly, sincerely, hope that this helps, and if it prevents even one avoidable overpayment, or frees up the phonelines from unnecessary calls, it'll have been worth all the typing.

Best of luck.

JaMmRocks:

Maternity allowance is a non-taxable benefit, and is treated completely differently than SMP. You don't have to declare Maternity Allowance, you were quite right

Theyremybiscuits :

The only benefit there that has to be declared is the Income Support, and all that needs to be informed is the start date.

Housing Benefit, Council Tax Benefit, maintenance, Child Benefit : none of these are classed as income for tax credit purposes.

whoop!

Thank you

Thanks very much indeed snigger x

thanks snigger - will make sure i am on their cases...it also means i'll get more money this year as am on Mat leave even longer this year! YAYYYYYYY!

Hi snigger thank you for your reply. I have sent everything and as I have made a follow up call regarding the matter and given them the recorded delivery no, the lady said I do not have to worry about the 31st of july as I have done everything in my power to get the information requested to them. The scheme is run by his employer and it does say it is a sacrifice and his pay slip shows:-
UNIT VALUE
LAUNDRY SACRIFICE 0.21 12.60-
LAUNDRY PAY NON-TAX 12.60
SUBSIST SACRIFICE 0.21 99.12-
SUBSISTENCE PAY NT 99.12

He does not get a p11d as I have not got a clue what it is. It is a opt out scheme and we have decided if it is going to affect us then he will remove himself from it. My only issue is that I have hunted through all paperwork sent to me, and also online, and cannot find any questions about a sacrifice and if I had filled in the form then I would have been none the wiser. Its a shame as I was one of the lucky people who had never had any issues or problems with my renewals which from playground talk is very rare. My main worry is we will be hit hard for him being in this scheme and if so the whole family will suffer badly, it is causing me major stress with the not knowin so I think I will have to phone on monday and see if they have even started processing the information as I have proof it has been delivered.
Thank you ever so much again xxx

Good, EnglandAllanPoe Just remember as mentioned previously that if you take more than 39 weeks your employed status ends for tax credit purposes and you must phone up and notify this. Also remember the SMP deductions are for up to 39 weeks in any given period of maternity leave.

OK susall - if you've sent off all the relevant paperwork to the physical change of circumstances team they will decide whether the scheme is allowable and whether or not the gross income you declare should include or exclude the amounts covered by salary sacrifice.

Unfortunately, although several schemes (childcare vouchers, mobile phone benefit, cycle-to-work schemes etc) are automatically accepted now, I've never personally seen in guidance any reference to laundry or subsistence salary sacrifice.

What to do, if you're worried, is tot up the amount of annual income if the sal/sac was included, call the helpline, and get them to do an estimate of entitlement based on that revised income.

Then, should the worst happen and the declarable income includes the sacrificed salary equivalent, you may be forewarned.

As far as calling in to check progress goes, because you've sent the documents to a tax credit processing office, the helpline will only be able to advise you if the update has been made on your behalf, and will not be able to confirm the figure currently held.

Tax credit office should write to you with their decision though, and it's never a bad thing to progress chase a change of circumstances if you haven't yet had an award notice confirming it. Just give it a fair time period, remembering a lot of the offices don't work over the weekend like the helpline.

Hope it pans out for you.

Hello snigger - thank you for this thread as it has got me thinking.

We have never claimed any tax credits of any description as I always figured we would not get anything, but maybe I am wrong.

Briefly, we have 2DC (aged 3 and 1) and both work basically full-time (I actually have an 80% teaching contract over 5 days). We both claim the full £243 childcare vouchers from our employers and top this up to pay for childcare which works out at £210 a week.

In round figures, I earned £21,000 and DP earned £30,000 according to P60s covering the last tax year, thus totalling £51,000.

I was on maternity leave from 25.12.08 until 22.7.09. DP took two weeks paternity leave in Jan 2009. My salary has already been reduced by only having SMP from Dec 2008 until 5th April 2009 - can I still deduct £100 for each week between these dates? And £200 deduction for DP?

What about the salary sacrifice we each make for childcare vouchers - do we deduct them from the income amounts or not? If so, the DP claimed his all year and I claimed mine from Sept 2009 until April 2010.

Any help greatly appreciated - is it worth us claiming?

BUT - from this Sept (2010) I am returning to working full-time and have a temporary promotion which will take my annual gross income up to £37,000. Will this make a difference to whether we should claim? DP will still earn £30,000 so total is above the limit for next year. Can we claim just for one year and then notify of changes next year?

Sorry for such long post - should I simply call helpline?

So --- DP claims £30,000 for whole tax year (or deducts childcare vouchers if allowed).

I have SMP from 6.4.09 until 22.7.09 and then salary (+/- childcare vouchers).

DP's paternity would have been in a different tax year.

But then I may well be made redundant in 14 months unless redeployed so salary will go DOWN again.

Snigger,

Not sure what they'll make of this.

Income much reduced this year as although continuously employed with a contracted 35 hour week, due to lack of orders I've been stood down for a good portion of 2009-2010.

I've not worked, but I've been employed. I haven't turned out for 35 hours a week. Have I then worked for more than 30 hours a week?

bump

Sorry, Dysgu, I've been remiss over this thread.

If it's ok by you, I'm going to take your figures into work and run them through our entitlement calculator and see if there's any impact - this means I'll be able to give you a meaningful response on Monday?

Can I just ask. I sent off my review form thingy weeks and weeks ago and haven't heard anything.

Shouldn't I have had a new notice or someting through by now ?? Should i attempt to ring and check that they got it ??

You would normally receive your award notices confirming previous and current year awards within two weeks.

If you haven't, it could be down to two things - you posted your renewal, and it hasn't been processed yet, or your renewal is inconsistent with some of the information held on the system and needs a quick once over before finalising - obviously this slows things up.

Any queries, call in, and remember (I'm so going to get sacked for this) advisors are actually online from 1/4 to 8 sometimes, so calling REALLY early can, sometimes, pay off.

Thank's snigger, will ring them then.

Hi Snigger,

I sent my renewal pack off 13 weeks ago and still haven't heard anything. I earnt £3000 less last year than the previous so am expecting some money back. I have rang up 6 times now chasing and nobody will give me any answers, just that if there was a problem my payments would have stopped by now. Am I allowed to chase with a manager, as 13 weeks is a long time to wait? Just curious, as I don't want to be a moaning customer!

Thank you Snigger.

Would be interested in just knowing if it would make any sense to call for a pack. We have never claimed before but I may stop working in 14 months so thought it might be worth getting any money we are entitled to so we can save it in case I give up work.

Thanks if you mange to give me an idea as to yay or nay.

Hi Snigger ... I've just discovered this thread - it's great, thank you! May I ask a question please. I don't know whether to put down under Other Income, income from some shares I sold this year (shares were bought through employment share-save schemes, one lot around 5-10 yrs ago, the other lot over 2 yr period up until 2008 - maybe not relevant!). Phoned helpline today and the guy asked what profit I had made on them - that's a bit hard to work out as the money was deducted from salary before tax & NI (also, one company matched shares, buy one, get one free sort of thing). DH thinks I don't need to declare the money I made from the sale of them. The helpline guy told me to ring local tax office, and if it's taxable then I need to. I'm not working at the moment so my tax free allowance would absorb the sale of the shares. Any advice please before I start ringing tax offices!

Thanks in advance and sorry if a bit garbled.

bump

Right, Dysgu : Sorry about the delay here. RL stuff has been tricky, and to be totally frank, I?ve had more tax credits in the last month than I can cheerfully swallow and this thread has been on my ?must do, can?t do? list for a bit, and I?m sorry for that.
Taking your situation point by point:
If you apply now, your award will be based on your 2009/2010 income, unless 2010/11 income is lower or more than £25k higher (this is set to change, since Budget, but is still intact in the current year).
So we need to establish your py (previous year) and cy (current year) income as a household.
I would immediately disregard the possibility of redundancy, as future events aren?t factored into your tax credit award ? claim what you?re entitled to now, and call when things change.
I would also disregard your temporary promotion in as much as it affects the current tax year ? increased income will have a knock on effect on next years award, not the current one. Anyway, the budget amendments to tax credits will make this a moot point anyway. I?ve more guidance to spout at you, but in general I would say you should call the helpline, get a claim form, get it back to us ASAP for maximum 93 backdating, and when your award is issued and payments start, make sure you call in with an estimate of your elevated 2010/11 income so there?s no likelihood of overpayment.
You?ve said your household income for 2009/10 from P60s is about £51000. You were on maternity leave from 25/12/08 to 22/07/09. Any income received in 2008/09 (up till 05/04/08, in other words) is now immaterial, due to maximum 93 day backdating on any new award. DH?s paternity leave landed before 060409 it?s too late to factor in. You can deduct up to £100 per week SMP from your P60 figure to a max 39 weeks ? 06/04/09 to 22/07/09 is roughly 15 weeks - £1500 deductable from your P60 figure, making household income £49500.
Salary sacrifice ? if you have signed up to an actual salary sacrifice scheme and are receiving childcare vouchers, your income on your P60(s) should already disregard the tax free amount, meaning there is nothing to deduct. You need to check this ? look at your P60 and make sure the figure there represents your actual taxable income, excluding any payments into salary sacrifice or pension provision. Look here to see if you?re better off on childcare vouchers or child tax credit with childcare elements. Bear in mind that you can?t include any amounts covered by childcare vouchers in your tax credit claim.
Based on what you?ve said, I?m making the following assumptions on your childcare costs (any differences may have an impact on the figures following) : your overall costs are £210 per week. On a 52 week year (assuming , because of the ages of your children, that you are currently unaffected by school holidays) your annual costs would be £10920. £5832 of this is covered by childcare vouchers (£243212months) leaving declarable annual amount of £5088, which we divide by 52 and round up to give you an average weekly cost of £98.

As far as I can see, as a rough estimate, on the assumption that no one inthe household has any disabilities, and that you work a combined 30 hrs per week minimum, you should be able to claim the family element of £10.50 per week, backdated three months from the date we receive your claim form.

Get to it!!

Hi nobiggy -

the key here is - have you been paid?

The key to WTC is 'remunerative work' - if your employer is paying you for your contracted hours, and choosing not to make you do anything, that's their look-out. It affects your WTC if you're not being paid.

This can vary from advisor to advisor as there is a little bit of viewpoint latitude in this one, but I would certainly deem that if you are receiving the salary, the fact that your employer is choosing not to use you in your contracted role is immaterial - continue claiming.

Hang on, nobiggy, I've just read your post again and I think I've misinterpreted some of what you've said.

Right, nobiggy.

If, as I now understand it, you have been 'stood down' and paid less accordingly, you should deem this a reduction in working hours, particularly if it lasts more than four weeks. I could do with more detail from you in order to give a viable answer.