Working Families Tax Credit and Child Tax Credit...

[Linnet]

Ok, I may be being a bit thick here but I'm confused.

Last year we qualified for both the WFTC and the CTC. The amount we were awarded was based on our income from April 2001-April 2002, like everybody elses. At that point my P60 only had earnings on it for 9 months of the year as I only started work in the July.

A couple of weeks ago we got our renewal form, haven't filled it in yet though. Today we got an award notice telling us that we will be getting £x amount paid into bank and £x amount paid through dh's wages. It then has a part on the form that says...
"Mrs Linnets income from 6th April 2003-5th April 2004 was £xxx amount."
"Mr Linnets income from 6th April 2003-5th April 2004 was £xxx amount."
Both the incomes that they have entered are the same incomes that we earned in 2001-2002.

Now obviously a lot has changed since then, I've done two full years at work therefore earned more money plus my hours have increased which I told them about. And Dh's wage has gone up as well.

Why aren't they asking what our income was from April 2002-April 2003?

Has anyone else had their renewal form through the post yet?

I phoned the helpline today and the guy that I spoke to couldn't get into the correct screen to help me completely but did say that given the income that is on our P60's that we got recently it makes us well over the higher income we are allowed to earn to qualify and they will probably therefore claim some of the payments back a little each week.
He also asked me to phone back later when the system was up and running properly but I didn't have time will have to do it tomorrow.

Shouldn't they be asking for the income that we earned in April 2002-2003?

Sorry this is a bit rambly only I think I've confused myself by thinking about this too much today. And the fact that I'm due another baby next week doesn't help as they will sort out one part then have to redo it all again anyway.

If anyone can shed any light on this please let me know.

First of all we sent them the old p60s but put in writing what our current circumstances really are. We also told them on the phone our current circumstances and they changed it and the amount. They then sent us new awards detailing the change of circumstances.

They had to use 2001-2002 as it was a complete year when the CTC and WTC started, if they had used 2002-2003, it wouldn't have worked as people started sending in forms in oct 2002.
Now they are using the previous year as everyones CTC and WTC is set up and all theyhaveto do is adjust the payments.

But shouldn't they be now asking for the income on the P60's from 2002-2003? I thought those were the figures they would be asking for this year. Aren't most people now going to lose out this year as their circumstances have changed so much?

I know there is probably a really simple explanation to this that I just can't see, these things always confuse me and my shrinking pregnancy brain just can't seem to cope, lol

They based their figures initially on 02/03 as a guide. If your circumstances changed during the year you had to let them know.

eg. when we first applied I was working parttime, my ds was in childcare. Then I had my dd in Jan 03 and I wasn't working or paying childcare. Then I returned to work parttime in May 03 and was paying childcare. We advised them of each change as it happened and they adjusted the payments due to us. We had to advise them several times of each change as the 'computer' lost the details, etc. Nightmare.

The whole system should be straightforward but it is not! But the lowdown is that you need to advise them now of your circumstances last year so they can adjust any under/over payments. Does sound like you will owe them money I think

Still waiting for ours to come through, but from May 9th dh hours will change he will no longer get shift allowance as he will be on regular days a loss of about £50 per week he will also loose traing allowance as they have made a lot redundant.. will he get this revised this year or next?

you need to advise them on the date that it happens and they will amend it immediately (or at least that was case before this review) If nothing else was different from last year I would ring them and I imagine that they should change it on screen - you will get a new award notification sent out in couple of weeks.

Although this is what happened last year and may not apply until review is over...

They seem to be a law unto themselves!

HTH

The only things that changed last year was that I had worked a full tax year by April 2003 and my hours went up in May 03. I wrote to them and told them this and I even sent it recorded delivery so they couldn't come back and say they didn't know. They adjusted our payments slightly but not by a huge amount.

It now looks as though we're not going to qualify for both tax credits this year. But as I said in my first post new baby is due next week so I guess that will bump up some of the ctc as there is an extra element for a baby under 12 months but not sure if it will make us qualify for the wftc though. I'ts all so confusing.

I agree Linnett - it is totally and completely and ridiculously confusing!!!

You will get more for extra child and more again for first 12 months.

Our income isn't huge and we are not entitled to WTC - not sure what the ceiling is, but I don't think you will get it even though you will have another child (that is for child credit section). Your income is what determines whether you are entitled to WTC.

We had so much confusion last year with all our changes that I had to work it out then. I hope what I am telling you is correct!

ok, I was brave and phoned them a little while ago to renew my claim over the phone.

Gave the very nice lady our incomes and she told me that was fine. I asked if we still qualified and she said that we should still get money but probably not as much as last year. and we are only above the higher income amount on our award notice by a small amount so it will make a difference but not that much.

And I have to phone in a few weeks time once new baby has arrived and they will add him/her on also.

Feeling a lot better now. Thanks for all your comments. Glad I'm not the only one who finds it confusing.