Tax Credits

[jd_1984]

Three seperate people that I know, 1 family member and 2 work friends, have received letters regarding tax credits this morning. They are all full time employees (apart from maternity leave when their child was born) and have all bee employed without any other break in employment since they were 18. In other words, honest, tax paying people.

The letters outlined that the tax credits that they were awarded upon having their first child (one example is £12 per month) which they felt was an insult anyway, was a mistake and they were infact not entitled. So the letter has requested re-payment in full by (a date in december).

Firstly, how frustrating is it to have to re pay what the government initially calculated you were entitled to. Secondly, I think that people should be given the chance to re-pay in installments (like £12 per month) as it was paid to them rather than a lump sum just before Christmas. Thirdly, how annoying that this will go back into the pot to ensure that "Work shy" Joe Bloggs can apply for a crisis loan to make sure he gets new trainers for Christmas!!

I would like somebody to show me that my rant is not warranted because it just appears unfair!!
I am expecting my partner to get a similar letter, would be just our luck

[ummmm]

The threshold was recently lowered.

They will be allowed to pay back in instalments.

[pdust]

you can pay in instalments... i was overpaid (even though i called at least 5 seperate times and spoke to different people each time as i thought i wasnt entitled to what they were giving me... i was assured every time i was) i pay it back monthly.... i dont think your rant is unwarranted ... i couldnt say what i think of them as i would be banned lol

[friedgreentomato]

The enitlement was lowered that is why they are requestin money back. You will be able to pay it back in reasonable amounts.

If you want a rant why should tax payers with no children pay money to people with children!!

[magsmay]

if someone gave me £12 a month I certainly wouldn't take it as an insult -I'd be thankful -and if they are taking it back off you it means you are making a fair whack in wages so should be doubly thankful you've got a good job.

[ummmm]

They've capped it at 26k, I think.

[bednobs]

are you saying they have applied the lower threshold retrospectively helen? That seems really odd

[pdust]

*and if they are taking it back off you it means you are making a fair whack in wages*

not necessarily, one of my friends earned £125 a week part time and got paid a few hundred quid too much over the year..... she wasnt earning a fair whack in wages... its a cock up... i mean mistake on the tax credits office part.....

[friedgreentomato]

My understanding of it - that the amount awarded was lowered mid cycle and some payments may still have been made - but it is a while since I worked directly with TC.

[jd_1984]

I lived on my own without any assistance from tax credits for 3 years after leaving home. My partner (before we met) did get tax credits before we moved in together as she is a single parent with a toddler. I guess it was justified because she wasnt able to earn more money due to childcare issues etc, she wanted to work more but had to balance everything and ensure the child was looked after properly. Yet she was working x amount per week and subject to tax on those wages

[pastafreak]

Why is it necessary to have a go at those who do get tax credits....the purpose of which is to bring the income of those already working up to a minimum standard.
Don't worry-crisis loans are to be a thing of the past next year,or there-abouts. That should keep people happy...

[magsmay]

@pastafreak I'm not having a go at people who are on Tax Credits -I've been on Tax credits in the past with four children and both of us working . But someone moaning because they have to pay back at most £144 (£12 per month for the last tax year) which they thought was an insult to be given in the first place -and they are making a wage in excess of the £26000 a year threshold -well......the original OP stated
//I would like somebody to show me that my rant is not warranted because it just appears unfair!! //
so I just did! ;-)

[pastafreak]

Not to worry mags.....I was not having a go at you. It was the OP who seemed a bit negative about those who need Tax Credits.

[jd_1984]

Sorry I didnt mean to come come across as negative toward those who need tax credits at all! As stated, my partner relied on whatever help the state could provide as a single parent working over 30hrs per week. It was the work friend who felt £12 was insulting, not me. In actaul fact she is worse off now that we live together, only that my wage compensates and our joint income is comfortable for our needs.
I do feel however that to ask for the full amount just before christmas is a bit steep but have been told you can re pay over several months etc...

[ummmm]

I think it would be just a computerised letter.

[magsmay]

@jd_1984

Please state facts -if your partner was a single parent and working then she would get her childcare for free (or as good as) as long as she was using a registered minder or nursery. Of course she was subject to Tax on her wages -which was given back to her in the form of -guess....TAX CREDITS! Thats what they are....credits for Tax you have paid on your wages. As for you living on your own without the help of Tax Credits - well either you were making too much money to be eligible -or you were very silly for not applying -Tax Credits are not Social Benefits -they are a Tax credit given on earned income if you are on a very low wage.

[ummmm]

Isn't approx 70% on childcare? She would have to have a fulltime place as well. Do TC's pay the nursey fees when the child doesn't need to be nursery?

[EvianBaby]

As a single, childless, full time worker since I was 16, I could ask why it's fair anyone gets any extra money just cos they popped out a few sprogs.

(that's not my opinion, I don't think. But it could be)

[jd_1984]

I confess that my understanding of the system is limited at best as I have never been on any kind of benefits.
My post was about tax credit issues that others have raised and I was wondering if somebody could correct me if my rant was not warranted. I beleive this has been done.
My partner was eligible for numerous benefits (housing, tax credits, single occupancy discounts etc). Now living together we dont claim anything, as I didnt think we could, living off our incomes and maintenance from the childs father (which is inconsistent at best - but another story0

Sorry if my lack of knowledge on the facts has annoyed you magsmay I came on for clarification on an issue I dont know much about!

[ummmm]

Because they are making it easier for parents to go back to work. If you claim income support you're expected to back to work/search for work when they reach 10. With tax credits people are encouraged to stay in work. Good role models for the children and less likely to be out of work when the tax credits stop.

[magsmay]

jd_1984 you stated

// Now living together we don't claim anything, as I didn't think we could, living off our incomes and maintenance from the child's father//

but in your original post stated

//I am expecting my partner to get a similar letter, would be just our luck//

why would you be expecting to get a letter about your WTC if you don't claim any?