Tax credits

[juliekim0908]

Ok, so my maternity allowance finished in December, which means ive lost an income of £3215 a year.

I just called tax credits to let them know, and they inform me that infact they don't take in account maternity allowance, so technically I never earnt anything.

My husbands income was his first self employed year, making our whole income as £15706

Taking my income out of that now makes up £12,491

She didn't say anything on the phone, just said you'll receive a letter in the post.

Anyone know if we will receive more? backpayment? I don't know how the system works? if theres a earnings line you need to earn over 10k for a certain amount of benefits of 15k etc ?... Any help appreciated.

 

[nicejuicypear]

When you started the claim or updated it last year they would only have taken your husband's income into account when making the calculations. Even if you told them you were on MA, if it doesn't count they won't have used it in calculations so you won't get any more tax credits.

It depends what you said in April about his income, really, they'll have calculated it off that. Since it was his first year self employed, I presume you gave an estimated income? If you estimated it lower than he has earned you might find yourself in arrears. If you estimated it was going to be more than it has endedup being, you might get an increase.

Actually calculating what they will pay you is a bloody minefield. Even with the online calculator, and the form they give you to show what they've calculated, you can never work out exactly how they've come to that amount. I hate the lack of transparency into the calculations because when it comes to disputing an overpayment you can't actually prove that you were entitled to the money. <speaking from bitter experience>

 

[juliekim0908]

No they actually took into account my maternity allowance, as employment income. Silly lady on the phone obviously didn't know what she was doing at the time. So we'll be minus the 3k, wondering if they'll owe us money from last year aswell as money going up now if you know what I mean?

Didn't know there was a online calculator, will take a look. thank you though x

 

[nicejuicypear]

If they've mistakenly calculated your MA then you will be entitled to more now your income has gone down. Don't know how she managed it, since you're meant to give employer details but nothing would surprise me with some of the idiots who you speak to on the Tax Credits line.

Technically, it should be backdated too, because you were entitled to it then and it was their mistake. However, you might have to prove it was their mistake and not yours. Last I knew, they could backdate overpayment claims for something like up to six years, but underpayment claims would only be backdated 3 months (convenient for them, eh? Can you tell I'm a bit disillusioned with HMRC?).

Hope the letter comes through soon so you know what you're getting. Here's the online calculator https://www.gov.uk/tax-credits-calculator

 

[juliekim0908]

Thanks a lot. Their terrible I know & im sure ill be waiting a few weeks for a letter, then having to call them up to ask about the last years payments.
Went onto online calculator, our new income, works out less than what we are already receiving.. useless! lol