Quizzes & Puzzles1 min ago
Working Tax Credits
2 Answers
Going back the past 3 years:
Year 1 (2005)- annual earning approx �14800 - Didnt claim any credits
Year 2 (2006)- Annual Earnings approx �5000 (lost my job) - Didnt claim
Year 3 (2007) - Annual earnings �14600 - claimed working tax credits but this is based on year 2's earnings
Year 4 (2008) - Expected annual earnings �17000. Can no longer claim as year 3's earnings took me over the claim allowance.
I am a bit worried that i will have to pay back the credits i was awarded in Year 3 based on year 2's earnings. All paperwork has been completed and i was honest on all occasions about my earnings and circumstances. I have recieved documentation to say that i no longer qualify fo working tax credits but it does not state that i owe any overpayment.
I have 1 month to inform them if the info they have on me is incorrect. If they dont hear from me they will asume all info is correct (which it is).
Am i in for a shock letter saying 'as i have com#nfirmed info is correct, i now owe back �xxx. Or, as the crediots are based on previous years earnings, will i owe nothing back?
Apologies for long post but cant think of a shorter way to explain. Thanks in advance.
Year 1 (2005)- annual earning approx �14800 - Didnt claim any credits
Year 2 (2006)- Annual Earnings approx �5000 (lost my job) - Didnt claim
Year 3 (2007) - Annual earnings �14600 - claimed working tax credits but this is based on year 2's earnings
Year 4 (2008) - Expected annual earnings �17000. Can no longer claim as year 3's earnings took me over the claim allowance.
I am a bit worried that i will have to pay back the credits i was awarded in Year 3 based on year 2's earnings. All paperwork has been completed and i was honest on all occasions about my earnings and circumstances. I have recieved documentation to say that i no longer qualify fo working tax credits but it does not state that i owe any overpayment.
I have 1 month to inform them if the info they have on me is incorrect. If they dont hear from me they will asume all info is correct (which it is).
Am i in for a shock letter saying 'as i have com#nfirmed info is correct, i now owe back �xxx. Or, as the crediots are based on previous years earnings, will i owe nothing back?
Apologies for long post but cant think of a shorter way to explain. Thanks in advance.
Answers
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You have no need to worry. Because your year 3 earnings were less than �25000 above your year 2 earnings, the year 3 credit is based on the year 2 earnings figure, so there is not an overpayment arising from this.
Despite what they say, I would advise that you ring them & confirm the accuracy of the information - don't just leave it. They should then issue a final award notice for year 3.
Despite what they say, I would advise that you ring them & confirm the accuracy of the information - don't just leave it. They should then issue a final award notice for year 3.
Thanks themas. I have had all my paperwork through and all ther details they have are correct, and it states they are now making a final decision. They dont mention any overpayment but wasnt sure if that would come when the final decision had been made. half way through year 3 i recieved a pay rise which was backdated so wasnt sure if that would cancel out the awards i have been given. Was hoping this wasnt the case. I have never claimed a penny before (should have for year 3 when i was out of work though but stubborness, nieavity and pride prevented it - regret it now though and would happily claim every penny i am entitled too). Was hoping i wasnt going to be penalised for being honest.
Will probably give them a ring tomorrow and hopefully put my mind to rest. Thanks again.
Will probably give them a ring tomorrow and hopefully put my mind to rest. Thanks again.
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