Tax Credits

[Nomen Nescio]

Is this the right NG to ask about Tax Credits? If not, which?

Thank you

[Robbie]

Post by Nomen Nescio
Is this the right NG to ask about Tax Credits? If not, which?
Thank you

Ask away! I may be able to answer your query.

[Nomen Nescio]

Post by Robbie
Ask away! I may be able to answer your query.

So, what it is. I was on JSA then I found a job. I claimed tax credits
and I started receiving them . Them I received a form from TCO that I
should have returned back if the details were correct. Becasue I
wasn't sure if they were correct I send the TCO in Preston a letter
telling them the details were wrong but they didn't reply. Then my
circumstances changed and I called the tax credit helpline and
communicating my changes.

But since then I have kept on receiving letters from the TCO asking me
to repay the tac credits back. It sound like they have ignored my
letter and my phone calls. If I call the helpline they say I have
noting to worry about but these letters keep on coming. The right hand
doesn't know what the left hand does. It is a burearocratic hell.

[Robbie]

Post by Nomen Nescio

Post by Robbie
Ask away! I may be able to answer your query.

So, what it is. I was on JSA then I found a job. I claimed tax credits
and I started receiving them . Them I received a form from TCO that I
should have returned back if the details were correct. Becasue I
wasn't sure if they were correct I send the TCO in Preston a letter
telling them the details were wrong but they didn't reply. Then my
circumstances changed and I called the tax credit helpline and
communicating my changes.
But since then I have kept on receiving letters from the TCO asking me
to repay the tac credits back. It sound like they have ignored my
letter and my phone calls. If I call the helpline they say I have
noting to worry about but these letters keep on coming. The right hand
doesn't know what the left hand does. It is a burearocratic hell.

Unfortunately when it comes to (potential) overpayments for tax credits
I'm not clued up on them as the HMRC seem like a law unto themselves.

Unless anyone else here can answer the query I can only suggest you post
your query at moneysavingexpert.com where they have, amongst other
forums, a Benefits & Tax Credits forum:

http://forums.moneysavingexpert.com/forumdisplay.php?f=139

There's a number of posters who have experience of the tax credits
system including overpayments problems who should be able to help.

I can't think of any other newsgroup on usenet which could answer your
query.

[Niteawk]

Post by Robbie

Post by Nomen Nescio

Post by Robbie
Ask away! I may be able to answer your query.

So, what it is. I was on JSA then I found a job. I claimed tax credits
and I started receiving them . Them I received a form from TCO that I
should have returned back if the details were correct. Becasue I wasn't
sure if they were correct I send the TCO in Preston a letter telling them
the details were wrong but they didn't reply. Then my circumstances
changed and I called the tax credit helpline and communicating my
changes.
But since then I have kept on receiving letters from the TCO asking me to
repay the tac credits back. It sound like they have ignored my letter and
my phone calls. If I call the helpline they say I have noting to worry
about but these letters keep on coming. The right hand doesn't know what
the left hand does. It is a burearocratic hell.

Unfortunately when it comes to (potential) overpayments for tax credits
I'm not clued up on them as the HMRC seem like a law unto themselves.
Unless anyone else here can answer the query I can only suggest you post
your query at moneysavingexpert.com where they have, amongst other forums,
http://forums.moneysavingexpert.com/forumdisplay.php?f=139
There's a number of posters who have experience of the tax credits system
including overpayments problems who should be able to help.
I can't think of any other newsgroup on usenet which could answer your
query.

I might be wrong but I can't see it being that difficult to understand,
basic maths really. All Nomen has to do is work out how much TC's he is or
was entitled to, any payments over and above that amount must be paid back,
in instalments I suppose.

[Robbie]

Post by Niteawk

Post by Robbie

Post by Nomen Nescio

Post by Robbie
Ask away! I may be able to answer your query.

So, what it is. I was on JSA then I found a job. I claimed tax
credits and I started receiving them . Them I received a form from
TCO that I should have returned back if the details were correct.
Becasue I wasn't sure if they were correct I send the TCO in Preston
a letter telling them the details were wrong but they didn't reply.
Then my circumstances changed and I called the tax credit helpline
and communicating my changes.
But since then I have kept on receiving letters from the TCO asking
me to repay the tac credits back. It sound like they have ignored my
letter and my phone calls. If I call the helpline they say I have
noting to worry about but these letters keep on coming. The right
hand doesn't know what the left hand does. It is a burearocratic hell.

Unfortunately when it comes to (potential) overpayments for tax
credits I'm not clued up on them as the HMRC seem like a law unto
themselves.
Unless anyone else here can answer the query I can only suggest you
post your query at moneysavingexpert.com where they have, amongst
http://forums.moneysavingexpert.com/forumdisplay.php?f=139
There's a number of posters who have experience of the tax credits
system including overpayments problems who should be able to help.
I can't think of any other newsgroup on usenet which could answer your
query.

I might be wrong but I can't see it being that difficult to understand,
basic maths really. All Nomen has to do is work out how much TC's he is
or was entitled to, any payments over and above that amount must be paid
back, in instalments I suppose.

You've obviously never tried to do a tax credit assessment...

[Niteawk]

Post by Robbie

Post by Niteawk

Post by Robbie

Post by Nomen Nescio

Post by Robbie
Ask away! I may be able to answer your query.

So, what it is. I was on JSA then I found a job. I claimed tax
credits and I started receiving them . Them I received a form from
TCO that I should have returned back if the details were correct.
Becasue I wasn't sure if they were correct I send the TCO in Preston
a letter telling them the details were wrong but they didn't reply.
Then my circumstances changed and I called the tax credit helpline
and communicating my changes.
But since then I have kept on receiving letters from the TCO asking
me to repay the tac credits back. It sound like they have ignored my
letter and my phone calls. If I call the helpline they say I have
noting to worry about but these letters keep on coming. The right
hand doesn't know what the left hand does. It is a burearocratic hell.

Unfortunately when it comes to (potential) overpayments for tax
credits I'm not clued up on them as the HMRC seem like a law unto
themselves.
Unless anyone else here can answer the query I can only suggest you
post your query at moneysavingexpert.com where they have, amongst
http://forums.moneysavingexpert.com/forumdisplay.php?f=139
There's a number of posters who have experience of the tax credits
system including overpayments problems who should be able to help.
I can't think of any other newsgroup on usenet which could answer your
query.

I might be wrong but I can't see it being that difficult to understand,
basic maths really. All Nomen has to do is work out how much TC's he is
or was entitled to, any payments over and above that amount must be paid
back, in instalments I suppose.

You've obviously never tried to do a tax credit assessment...

Obviously, anyway if it is as complicated as you seem to be hinting it is,
then I would argue that I am not responsible for something that is
incomprehensible and clearly designed to mislead, not my problem, take it
out my dole at 10p per month if you dare.

[Robbie]

Post by Niteawk

Post by Robbie

Post by Niteawk

Post by Robbie

Post by Nomen Nescio

Post by Robbie
Ask away! I may be able to answer your query.

So, what it is. I was on JSA then I found a job. I claimed tax
credits and I started receiving them . Them I received a form from
TCO that I should have returned back if the details were correct.
Becasue I wasn't sure if they were correct I send the TCO in Preston
a letter telling them the details were wrong but they didn't reply.
Then my circumstances changed and I called the tax credit helpline
and communicating my changes.
But since then I have kept on receiving letters from the TCO asking
me to repay the tac credits back. It sound like they have ignored my
letter and my phone calls. If I call the helpline they say I have
noting to worry about but these letters keep on coming. The right
hand doesn't know what the left hand does. It is a burearocratic hell.

Unfortunately when it comes to (potential) overpayments for tax
credits I'm not clued up on them as the HMRC seem like a law unto
themselves.
Unless anyone else here can answer the query I can only suggest you
post your query at moneysavingexpert.com where they have, amongst
http://forums.moneysavingexpert.com/forumdisplay.php?f=139
There's a number of posters who have experience of the tax credits
system including overpayments problems who should be able to help.
I can't think of any other newsgroup on usenet which could answer your
query.

I might be wrong but I can't see it being that difficult to understand,
basic maths really. All Nomen has to do is work out how much TC's he is
or was entitled to, any payments over and above that amount must be paid
back, in instalments I suppose.

You've obviously never tried to do a tax credit assessment...

Obviously, anyway if it is as complicated as you seem to be hinting it
is, then I would argue that I am not responsible for something that is
incomprehensible and clearly designed to mislead, not my problem, take
it out my dole at 10p per month if you dare.

The problem with tax credits is that they are assessed on annual taxable
income, initially on the taxable income received in the previous tax
year then at the end of the current tax year the tax credits received
are reconciled against taxable income earned during the tax year just
ended. In theory they should be straightforward but in practice they are
a nightmare. Also tax credits paid during a tax year are basically an
"advance" of the tax credit you would receive at the end of the tax year
once your earnings for the year have been, well, earned. If you have
received the correct amount then all is fine. If you have received too
little then there's a nice little bonus due. If you have received too
much then it's possibly (but not always) cough the cash up time as you
will have been overpaid. Except you may not know you are being overpaid
at the time you got the tax credits as the actual assessment for tax
credit amounts is overly complex. Plus if you do not provide the correct
sort of information at the end of the tax year (and by July 31) to
reconcile your income for the tax year just ended in April then HMRC can
rule you have been overpaid ALL of your tax credits paid during the year
even if you were due them at the time. This last part may be what has
happened to Nomen, though I'm not 100% sure.

Gordon Brown introduced tax credits to simplify the old Family Credit
earnings top up scheme which based a top up on an average of your
earnings for the last month or two... the last system was unfair (do
overtime in that period and you lost out as FC payments were fixed for 6
months, similarly many people would drop their hours during the period
to get more FC) but at least it was easier to work out how much you
would get per week.

[m***@hotmail.com]

Post by Robbie

Post by Niteawk

Post by Robbie

Post by Niteawk

Post by Robbie

Post by Nomen Nescio

Post by Robbie
Ask away! I may be able to answer your query.

So, what it is. I was on JSA then I found a job. I claimed tax
credits and I started receiving them . Them I received a form from
TCO that I should have returned back if the details were correct.
Becasue I wasn't sure if they were correct I send the TCO in Preston
a letter telling them the details were wrong but they didn't reply.
Then my circumstances changed and I called the tax credit helpline
and communicating my changes.
But since then I have kept on receiving letters from the TCO asking
me to repay the tac credits back. It sound like they have ignored my
letter and my phone calls. If I call the helpline they say I have
noting to worry about but these letters keep on coming. The right
hand doesn't know what the left hand does. It is a burearocratic hell.

Unfortunately when it comes to (potential) overpayments for tax
credits I'm not clued up on them as the HMRC seem like a law unto
themselves.
Unless anyone else here can answer the query I can only suggest you
post your query at moneysavingexpert.com where they have, amongst
http://forums.moneysavingexpert.com/forumdisplay.php?f=139
There's a number of posters who have experience of the tax credits
system including overpayments problems who should be able to help.
I can't think of any other newsgroup on usenet which could answer your
query.

I might be wrong but I can't see it being that difficult to understand,
basic maths really. All Nomen has to do is work out how much TC's he is
or was entitled to, any payments over and above that amount must be paid
back, in instalments I suppose.

You've obviously never tried to do a tax credit assessment...

Obviously, anyway if it is as complicated as you seem to be hinting it
is, then I would argue that I am not responsible for something that is
incomprehensible and clearly designed to mislead, not my problem, take
it out my dole at 10p per month if you dare.

The problem with tax credits is that they are assessed on annual taxable
income, initially on the taxable income received in the previous tax
year then at the end of the current tax year the tax credits received
are reconciled against taxable income earned during the tax year just
ended. In theory they should be straightforward but in practice they are
a nightmare. Also tax credits paid during a tax year are basically an
"advance" of the tax credit you would receive at the end of the tax year
once your earnings for the year have been, well, earned. If you have
received the correct amount then all is fine. If you have received too
little then there's a nice little bonus due. If you have received too
much then it's possibly (but not always) cough the cash up time as you
will have been overpaid. Except you may not know you are being overpaid
at the time you got the tax credits as the actual assessment for tax
credit amounts is overly complex. Plus if you do not provide the correct
sort of information at the end of the tax year (and by July 31) to
reconcile your income for the tax year just ended in April then HMRC can
rule you have been overpaid ALL of your tax credits paid during the year
even if you were due them at the time. This last part may be what has
happened to Nomen, though I'm not 100% sure.
Gordon Brown introduced tax credits to simplify the old Family Credit
earnings top up scheme which based a top up on an average of your
earnings for the last month or two... the last system was unfair (do
overtime in that period and you lost out as FC payments were fixed for 6
months, similarly many people would drop their hours during the period
to get more FC) but at least it was easier to work out how much you
would get per week.
--
Robbie- Hide quoted text -
- Show quoted text -

And despite HMRC requiring self employed to have accounts done and
submitted by 31st January, tax credit office require income details to
be provided by 31st July - 6 months earlier!
Luckily enough I do my own accounts so can prepare them in time.
Tax credits seem to really, really hate estimated figures for the
previous year. The one time I was waiting on information to finish the
account the tax credit office was ringing me more than once a week to
finalise the payments.

Martin <><

[Niteawk]

Post by Robbie
The problem with tax credits is that they are assessed on annual taxable
income, initially on the taxable income received in the previous tax year
then at the end of the current tax year the tax credits received are
reconciled against taxable income earned during the tax year just ended.
In theory they should be straightforward but in practice they are a
nightmare. Also tax credits paid during a tax year are basically an
"advance" of the tax credit you would receive at the end of the tax year
once your earnings for the year have been, well, earned. If you have
received the correct amount then all is fine. If you have received too
little then there's a nice little bonus due. If you have received too much
then it's possibly (but not always) cough the cash up time as you will
have been overpaid. Except you may not know you are being overpaid at the
time you got the tax credits as the actual assessment for tax credit
amounts is overly complex. Plus if you do not provide the correct sort of
information at the end of the tax year (and by July 31) to reconcile your
income for the tax year just ended in April then HMRC can rule you have
been overpaid ALL of your tax credits paid during the year even if you
were due them at the time. This last part may be what has happened to
Nomen, though I'm not 100% sure.
Gordon Brown introduced tax credits to simplify the old Family Credit
earnings top up scheme which based a top up on an average of your earnings
for the last month or two... the last system was unfair (do overtime in
that period and you lost out as FC payments were fixed for 6 months,
similarly many people would drop their hours during the period to get more
FC) but at least it was easier to work out how much you would get per
week.
--
Robbie

I can see how this system might cause problems for some people if they
calculate net income rather than gross income. And then there is overtime to
consider, still shouldn't be that far out. I think the lesson here is to err
on the side of caution. Still it should not be that difficult to work out,
then again what happens if the job only lasts for say 6 months, then you are
screwed. That means you were over paid 50% in TC's based on 12 mts
calculations.

Its a bit complicated and should be treated with caution. Most people are
not that clever at maths, and most will not know how long they are going to
be in employment, never mind when the tax year begins and ends, and thats
another problem, having just got a job in the middle or near the end of a
tax year, and then losing the job part way into a new tax year. You need
some accounting skills to work it out. Then there is the tax credit rules to
consider, I suppose the amount of earnings you get has something to do with
it. And what happens if you only work 3 mts and end up back on the dole,
will they say you can keep the TC's paid, I doubt it. Thats a 75% over
payment if you started work at the beginning of the tax year.

[Robbie]

Post by Niteawk

Post by Robbie
The problem with tax credits is that they are assessed on annual
taxable income, initially on the taxable income received in the
previous tax year then at the end of the current tax year the tax
credits received are reconciled against taxable income earned during
the tax year just ended. In theory they should be straightforward but
in practice they are a nightmare. Also tax credits paid during a tax
year are basically an "advance" of the tax credit you would receive at
the end of the tax year once your earnings for the year have been,
well, earned. If you have received the correct amount then all is
fine. If you have received too little then there's a nice little bonus
due. If you have received too much then it's possibly (but not always)
cough the cash up time as you will have been overpaid. Except you may
not know you are being overpaid at the time you got the tax credits as
the actual assessment for tax credit amounts is overly complex. Plus
if you do not provide the correct sort of information at the end of
the tax year (and by July 31) to reconcile your income for the tax
year just ended in April then HMRC can rule you have been overpaid ALL
of your tax credits paid during the year even if you were due them at
the time. This last part may be what has happened to Nomen, though I'm
not 100% sure.
Gordon Brown introduced tax credits to simplify the old Family Credit
earnings top up scheme which based a top up on an average of your
earnings for the last month or two... the last system was unfair (do
overtime in that period and you lost out as FC payments were fixed for
6 months, similarly many people would drop their hours during the
period to get more FC) but at least it was easier to work out how much
you would get per week.
--
Robbie

I can see how this system might cause problems for some people if they
calculate net income rather than gross income. And then there is
overtime to consider, still shouldn't be that far out. I think the
lesson here is to err on the side of caution. Still it should not be
that difficult to work out, then again what happens if the job only
lasts for say 6 months, then you are screwed. That means you were over
paid 50% in TC's based on 12 mts calculations.
Its a bit complicated and should be treated with caution. Most people
are not that clever at maths, and most will not know how long they are
going to be in employment, never mind when the tax year begins and ends,
and thats another problem, having just got a job in the middle or near
the end of a tax year, and then losing the job part way into a new tax
year. You need some accounting skills to work it out. Then there is the
tax credit rules to consider, I suppose the amount of earnings you get
has something to do with it. And what happens if you only work 3 mts and
end up back on the dole, will they say you can keep the TC's paid, I
doubt it. Thats a 75% over payment if you started work at the beginning
of the tax year.

If you end up back on the dole after 3 months you should - in theory -
be paid correctly or underpaid. In theory (at least) you shouldn't be
overpaid.

[Niteawk]

If you end up back on the dole after 3 months you should - in theory - be
paid correctly or underpaid. In theory (at least) you shouldn't be
overpaid.

In theory, yes. I seriously doubt if it can be that simple in practice, then
a few weeks later you get another job and so on. ;)