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

we are still waiting too... the overdraft is struggling and still no word except they are processing our claim.........hope they back pay it!?

Dawniy, you can go to the nearest Inland Revenue office and get an emergency payment if they still have not given you anything. You need some ID and plenty of patience though.

I rang with my change of circumstances in early March although I hadn't heard anything from them at that point and got my payment on 9 April followed by notification letter 3 days later. You don't need your original award notice to be able to change circumstances and as they are only backdating on claims made before 6 June you need to make sure they have the correct details now. I'm told that they are putting lots of additional people on the helplines from Monday but I don't know how much information these people will have so it might be worth sending a letter by recorded delivery.

Can I ask a silly question too? What if your income has gone up from 01/02 income? Ours has, slightly but the award is based on earnings to tax year to April 02 (these are all PAYE). So do we now write and say oh you've paid us too much since our income is now £xxx, so here, have some back? If so, this system is even crappier than I thought. Or is the view that it all gets sorted in the next tax year?

The same has applies to us - since I have gone back to work part time in May. I have tried umpteen times to ring the helpline but have never gotten through so... I have written to them to tell them when my contract started, what I am paid and also that it is a six month temporary contract. Now the bal is in their court - I would rather do this than end up having to pay money back later. I expect nothing will change though until next year.

Janinlondon and Pipsqueak - thanks for your replies. As soon as I get any notification thro' I will ask to be re-assesed . Hopefully no 2 will be here by then so I can add him/her to the application .
Let us know how you can get on re helpline

Phillippat-yes exactly the same here!!!!

Well despite sending us letters to say the thing hadn't been processed we've just received another payment. I didn't write or anything because quite frankly I couldn't be bothered. As long as they keep paying I think I'll just go with the flow.

WWW our income has increased dramatically since 01/02. We are getting our money but I did worry about what would happen next year. But as my hours have now increased this means that our income is now going to be even higher next year. I have written to them by recorded delivery to tell them since I couldn't get through on the helpline and they have received my letter. Now waiting to hear from them but I've checked my bank account and the same amount of money has gone in as usual. Just have to wait now and see how much of it they want back.
I really don't see how they think this is a better system, I and everyone I know much preferred the old one.
If you write to them send the letter by recorded delivery that way they can't turn round and say they didn't get it. And I think a lot of people are not going to get very much money, if any, next year if their incomes have increased by a fairly big amount since 01/02,

If your income has increased by less than £2500 you don't need to tell them. If it's more than that you do.

The old system was too open to abuse. This new system will be better once it beds in- it's the usual computer problems the Government is beset with that seems to have caused all the trouble.

Philippat

Yes, on Friday I received a cheque for 50 odd quid from the New Tax Credits dept. The envelope also had a piece of paper which said "please find a cheque enclosed for £610.00"

As I haven't had an award notice I assume the £610 is my annual entitlement, and the 50-odd is the payment that didn't make it into my bank account for april (waiting now for May's bank statement).

As it's impossible to get thru to the IR on the phone, and emails get no response, I'll wait to say what happens next.

I mean wait to see what happens next

Pipsqueak - apply anyway. The helpline (I should get an award - I actually got through!) say put in the application regardless as they can only backdate three months. July is the deadline.

RESULT! Due to sheer exasperation, emailed my MP yesterday. Reply recieved today followed by phone call. Profuse apologies proffered by IR, (via MP's secretary)and my claim is to be processed today. My 'mistake' when submitting my claim being that my employer's address did not match exactly those on the online form!

Suggest all those getting nowhere contact your MP - email contacts via the Members of Parliament site.

janinlondon.well done for getting through! I am going to request reassessment because I want my dosh now!

I have finally managed to fill out the online form. Know what you mean pipsqueak and others about it being rubbish if you are employed and self employed as dh and I both are. Also I have just started my paid job but didnt ovbviously earn anything from it in 2001/2002. However as the questions abt employer seemed to relate to 'now' I thought I ought to fill it in, but with £0 income. It'll be a miracle if anyone can make sense of that.
Guess I'll have to wait and see if anything happens now.Thanks to everyone who offered advice.

After 5 months of waiting mine finally came through yesterday but says that dh works 87 hours a week not 37, I've got to ring them anyway to say that my hours are now 22 not 37 AND i've had a pay reduction! AARRGGHH
But I suppose that at least they've agreed we're gunna get somethin!

Finally got through on the phone line, only to be told that our claim had been stopped because we've moved (and yes I told them) and our employers have changed! Was then told that given our high income (believe me, we're not well off) we won't get very much anyway! Now have to wait for a phone call from them, as to make matters worse we're moving in 2 weeks and there's no way ut'll be processed by then!

Well we are finally getting some payments only surprise, surprise they have got DH's income wrong and we are getting a larger payment than we should! They are still sending multiple documents saying that we have informed them of various changes which of course we haven't and DH is so sick of it he is going to bundle the whole lot up and send it back to them telling them that they made the mess, they can sort it out!

I have just had money deposited in my bank account. It turns out that it is the tax credit. Now I don't know what to do. I have had absolutely no information from the Inland Revenue as to how much I should be getting, no indication as to how often it is going to land in my account - nothing. Should I confuse the poor dears by ringing (or trying!!) to ask them for details or what? An amount has already been taken off of dh's job seekers allowance because of this payment to me. Should I just shut up and wait for them to write to me? I'm thinking yes, as recent experience of government departments tells me how easy they find it to completely cock things up.

You should get a letter telling you how much you have been awarded in the next few days but even that won't really make much sense. Go ahead and spend the money, if it is really an overpayment they won't be taking it back for months and even then can't take it all in one go.

Ive only flicked through this so i may be asking a question thats already been answered but is anyone worse off now with these new tax credits? My income hasnt increased from the amount stated on my P60 at that time and im getting less than i did then. Is this right? ive heard that its happened to quite a few people.

You shouldn't be getting any less than you were previously unless it was worked out using different income figures. The WTC and CTC together make up the amount previously awarded for WFTC and Children's Tax Credit (previously paid as part of your tax code at £10ish per week). Do you have a child that has turned 1 in the last few months and you previously received the under 1 rate? Or maybe the actual income has changed (have you considered company vehicles or bonuses etc?) Make sure they take into account any private pension that you pay as half of this should be deducted from your income. Any savings over £3000 can reduce your benefit too.

You should actually be a £ or two better off due to a slight increase in rates from last year.

nope, nothing has changed at all. I dont have a company vehicle, i dont have bonuses and i dont have a pension or any savings. I cant think of any reason at all for it to be different? I used to pay very little tax but this has shot up and my credits dont seem to compensate for it if that makes sense? (It doesnt to me )

Have you tried putting your details into the on-line calculator to see if it comes up with the same figures - just in case they have made a mistake working it out?

Jenny - you could be worse off. We are, and unfortunately the figures are right. Last year it was based on the income of the higher earning parent, this year it's based on joint income. So even if your incomes haven't changed your entitlement could decrease. I think this is most lilely you and your dh/dp have simlar(ish) incomes.