New Tax Credits

[PamT]

Has everyone applied for the new tax credits? They start in April and replace not only the existing WFTC and Disabled Persons Tax Credits but also the Children's Tax Credit. Currently the wage earner receives approximately £10 per week extra due to an adjustment of the tax code. This will stop in April and you will only get this payment if you apply for it. I think it will be paid to families earning anything up to about £58K. Families earning up to around £22K will also be entitled to additional money in Child Tax Credit or Working Tax Credit.

See www.inlandrevenue.gov.uk for more information. You can calculate your entitlement or apply on line.

And no, I don't work for them but I do think that everyone should get what they are entitled to. My form went in about a month ago

Haven't had time to read all this but we are less than impressed that our payments have gone AWOL too. Taking the easy route out and leaving it to DH to sort so he can have all the fun!

We haven't had any payments but have received stacks of documents, mostly all the same, grrrrrr!

Tinker , have you heard anything from them at all like asking questions about stupid things. If not, I would assume that they have lost your application and apply again. I originally applied on line and then sent it in in early December. In late March I called to ask what was happening as was told that if I hadn't heard anything at all, my application was probably lost. I reapplied immediately. I had a phone call a month later asking for info that was already on the application and then a letter a month after that asking for the same info as in the phone call (name, address and ni number). I just got my letter with my tax credit award in the mail today.

SofiaAmes - I've lost track of the contact I have had from them. Definitely not received an award in post but vaguely remember getting an acknowledgement. Had quite a few reminders to claim so contacted them. Was called back to confirm claim had been received. Then received a further call a few days later (on a Saturday morning) reminding me to claim! Because I didn't trust system at all, emailed them for a written confirmation. Got email back confirming claim had been received in October. And, apart from computer generated replies patronising me with statistics about how well they are delivering, and staff on phones who are deliberately denied access to information, nothing. Honestly, I am a civil servant, I know how understaffed the civil service is but this is abysmal. WHY can't staff have access to information? This alone would people's minds at rest.

Am tempted to:
a) claim again, like you did,
b) bombard them with letters/emails every day knowing that when we get MP's letter, they take priority (wrong I beleive but there you go) or
c) tell them they have overpiad me by £10,000 to get their attention.

Ghengis - Apply now!! I was in the same situation as you because I earnt too much last year. I applied just for the sake of it and, because our income is substantially different this year to that of last year, my husband (main childcarer) has been awarded £200 a month!

We had some money in our accounts 2 days after they'd told us they had no record of our claim. Not impressed with this system AT all. But at least we've had some money, which is something.

We would love to get the tax credits we are entitled to but the forms are jsut rubbsih if you are part self employed part working for an employer. They want accurate figures for our book keeping that we don?t even have to legally hand in till next April. Ridiculous. I like to think we are an intelligent couple capable fo filling in a form but this one has already taken up more time than we can be bothered with - exp. considering we may not get anything anyway. I am convinced the gov. have gone out of their way to make it as hard as possible to limit the amount of completed forms. If you are in full time employment or don?t work at all the form is fairly straightforward but for everyone else it is a pain in the neck.

I'm with you Stripymouse, the system is hopeless. But the info they ask for for the self employed partner (if only one is self employed) is actually from your 2001-2002 return. I know it probably bears no resemblance to your current income, but it seems you have to apply now just to be able to tell them they have it wrong when they reject your claim (if you see what I mean?)

Well, we've been very lucky in that our payments have been paid in since the beginning of April although I work with someone who hasn't had a penny paid and they even wrote to her saying that she doesn't qualify for the ctc as she has no children, she has 2! She's been going down to the tax office in town and getting cheques made out to her.
My hours have now gone up, as expected, and the citizens advice bureaux told me that I don't have to inform them as apparently you don't have to report an overpayment, but if I don't tell them now when we apply next year we will probably get nothing as they will just reduce the amount next year by what they overpaid this year, IFYKWIM. anyway decided to be honest and let them know and since I couldn't get through on the phone had to write to them. I sent it recorded delivery, again on advice of the citizens advice bureaux, so that they can't turn round in a few months and say we didn't receive a letter from you. And now we have to wait and not spend any money that is paid into our accounts until they let us know what has changed. Technically we're not any better off as we're to scared to spend the money incase they ask for it all back.
And did you hear that the call centres all went on Strike on Thursday because they were so fed up of people phoning up to complain? Wish I could have got through to complain.

Can anyone advise me? Its a basic question and I feel a bit of an ignoramus for asking but I cant seem to get the answer from the IR website. Can we apply for childrens tax credit even if we dont pay for any childcare? I had assumed that our accountant applied on our behalf last year but have heard nothing (we are both self employed and dp also employed: total income last yr about 20,000; this yr it'll be £30,000 as I am working pt too)
Are there any websites that actually explain what it is and how to claim it? Thanks

Soyabean, yes, you can apply for children's tax credit even if you're not paying childcare. It's not to do with childcare, but income. I'll find the site for you in a minute.

The Inland Revenue site is here

Yes. The Tax credit is for anyone earning a joint income of under £50,000 ish. Mr Blair has deceided rather than give the allowance to your partner in his tax code, to give it straight to you. Fill in the forms on line, and they will tell you whether you qualify or not (Sounds like you do) - Talk about making work for themselves. Rather than pay it to Dh within his tax code, I now get it (about £10 a week) paid into the same joint bank account that he gets his wages paid into. Crazy or what??? and I bet we're not the only ones. Oh well, theres nothing like keeping yourself in work!!

Thank you www. I didnt find that the site really answers my questions but will have another look. Am checking with my accountant too, but if the application was made on my or dp's behalf in Jan this year on the tax return, should we have heard something from Inland Revenue by now? Does it show as a differnt allowance on the PAYE notice, or do you actually get a letter or statement?

I think whoever wants the allowance has to apply for it. They wont tell you anything without you asking for it first. They wrote to Dh and I seperately after filling in that form online, to say to me, yep sign here and to Dh, to say we're changing your code.

Sorry forgot to say, yes, you should have heard either way by now if you had applied for it in Jan. On the site that WWW gave, there is a part that asks 'Do you qualify' fill that in and see what happens.

Thanks all. Had been reluctant to ask my accountant as I am afraid he will charge me £50 just for reading my email, but have decided to do so anyway...Will have a go at the do I qualify thing too.

After reading Dawn Primarolo's comment in today's Independent 'all claims made before 25 April had now been paid' rang my bank to itemise all credits paid in this month. As suspected, have still received NO payment or award notice. Have just written to the Independent, I am so angry about her statement. I suggest anyone in the same boat emails them at [email protected]
You'll need to state your name and postal address if you email.

Right Tinker I don't actually fit into that definition but we received one payment of about £40 at about the same time as a correct notice (ie 1 child and income of £xK) but this has been followed by a notice saying that we had 0 children and no entitlement and then followed by one saying that we hadn't returned the signed declaration on page 4 (page 4 was actually blank) so am still tempted to e-mail.

Janinlondon
My dh is s/mp and he is not earning anywhere near what he did in 2001-2002. Does this mean we can reapply with more up to date figures ?
I am asking you as you seemed to know s/emp angle and I got really frustrated with web- site.
Thanks

still nothing for us and we applied in November !!!

I have had 4, yes 4 payments of around £35-40. have no idea why? Should I call them to query it?

Anyone else had money (2 completely different random amounts in our case) but no award notice?

Colette. Yes, once they have processed the application and you have received a notice telling you what you will (or won't!) receive, you write back to them and give them more recent info. Talk about making work for themselves. We are in the same position as you. Our SE income has gone down significantly since 2001-2002. I still don't see why this is a better system than we had before??

hi janinlondon and collette............we are in the same position in that dh now s/emp and earning much less so we are apparently not entitled but on the notice we got it did say that when the I>Rev knew the earnings for this year it would be reassessed and payments made then i.e almost suggesting an automatic reassessment but elsewhere in the notice it indicated that payment can only be backdated for 3 months. I am trying without success to get through to the helpline to clarify whether we need to do anything now or wait. I'll post again if I ever manage to talk to a person at the other end!

PhilippaT, yes - 17.88 on 24/4 and 44.01 on 12/5. No correspondence to match.

What next? I'm all agog!