tax credit claim for Single nursing Mum

[rita777]

I had my baby last year march 2008, and just got back to work in January 2009, I received Maternity allowance till October 2008, £102.42. My working / child tax credit also amounts to £130.00/wk till now. my 2007/8 's net income was £5500.00. but since I just got back to work now my net should be about £2000... I am self employed.... does it mean that I may not be eligible for £130.00 pay when it's renewed in april ?. I understand they base it on previous year's income. would I be classified as unemployed till October 2008 when receiving the Maternity allowance ?

[Hunte78]

As you are Self Employed you are able to complete your Renewal just now based on an estimate for 2008/09, obviously down the line you will need to provide the Actual Income for the tax year.

 

You wouldn't be classed as unemployed up to October as you were getting Meternity Allowance, but for tax credit purposes you would be classed as unemployed after this date until you returned to work in January 2009, as they will only class you as still working for 9 months of maternity.

 

Hope this helps.

[rita777]

Pls which of these amounts gets the highest child and Working tax credit claim.. 5000pounds or 13,500pounds ??? I'm a Single nursing Mum , i need to decide if to go full time or part-time ??? Thanks

[ErikaPNP]

Try Benefits Search

[rita777]

Hello Everyone, pls your urgent reply would be Highly treasured as i don't know what to do ...

 

I just received a letter from the DWP, that for the year 2009/10, i claimed that my gross payment was for 6000pounds and they have a different figure from my previous employer which was 13,400 pounds....

 

ACTUALLY.. I 've always been self employed , but got this permanent position unexpectedly in 2009, then i did NOT call to update them of this I was pregnant and quite ILL most of the time, My department was made redundant at the time when I was due for Maternity Leave in April 2010. but because the department was being scrapped and outsourced, they paid me some redundancy money and also had to pay My 9 months SMP as a one off payment, this was heavilly taxed as a result !!! My Maternity Allowance was not taxed AT ALL, when I had my first child in 2008...

 

I am a Single Mum, I have not worked since last year April and I needed money to survive as I am not claiming any other Benefits, I told them 6000pounds because this has been the amount i've been earning in the previous years , and also because I believed my SMP should not be so much taxed !!! and i was not sure if my tax credit would be reduced.. My son also just started the Nursery in dec.. The only way i've been surviving is via this Tax Credit payments..

 

The DWP stated in the letter that If they don't hear from me by 20th feb. they recalculate my payment according to the amount provided by my ex-employer...

 

My FEARS ...* Are they just going to make this Amendment and let sleeping dogs lie ? they claimed that i was paid a total amount of 6,200pounds in awards.

* Do they always prosecute or fine everyone who they don't hear from ?

* Can i Claim taxed amount on my SMP it was about 3,500pounds inclusive of my April salary and all ..bearing in mind that this was in TAX WEEK 1 so with LOW tax exempt allowance ..

 

ALSO... My baby is just 7months now, i don't plan going to work until she is ONEyr old, i am only living on this tax credits, if it is reduced now i do not know how we are going to survive ? or what else can i claim ?

[rita777]

I do NOT have the intention to call them ! I am too scared and embarrassed ! I just want to wait to see the outcome of their recalculations.. so long as as it doesn't get deeper that this??? !!! or are they still going to PROBE more ???

[leemack]

Hello Rita, when was the smp lump sum paid and how much was it for? Is it included in the £13,400? Is any redundancy included in the £13,400 or any pay in lieu of notice?

 

Also have you informed hmrc of your income this tax year, which is lower than last year as you can ask for your claim to be based on the lower amount.

[rita777]

Hello thanks soooo much for your reply !!! well APPRECIATED !!!

 

NO the #13,400 did not include any of my SMP or lieu in notice , it was actually my gross pay for the whole of tax year 2009/2010.... and i was awarded #6,500 on both working and child tax credit (2 children) for the whole year ..Maybe IF i had told them the ACTUAL AMOUNT , i might STILL have been awarded this amount anyway !!! would 've saved all this SHAME!!!

 

As per my P45 which was issued on the 30th of April 2010 the total Amount was #12,270 gross and the tax was #3229... Bearing in mind that I have only worked for One month in the new TAX year beginning 2010/2011.... I was made redundant from 1st of May 2010 and also started my maternity leave officially on that day ..... MY SMP was #6,895 (9 months SMP) holiday pay of #2,951 and lunch allowance of #439 these were all taxed (#3,229 DEDUCTED)!!! because the lump sum was paid in the 1st month of the new tax year so only got 1st month tax allowance..

 

I have not called them at all .. don't know the explanation to give for this #6,000 which i told them! i don't want to implicate myself the more....

Are they going to probe more .. other than just RECALCULATE ???

[ErikaPNP]

I'm not 100% sure about this because you speak of tax credits and also of DWP.

 

DWP are not involved in any way with tax credit. Can you confirm whether this is solely a tax credit issue (which is dealt with by HMRC) or whether you also receive benefits from DWP?

[leemack]

Your tax credits are usually based on the previous year's gross income unless what you earn in the current tax year is less, in which case you can ask for your tax credits to be based on this year's income. I take it that your main concern is that you've been overpaid since April 2010? Is that right? If so what you need to do is to phone tax credits and update them on last years income and then ask them to base this year's award on this year's income. I realise that you're gross amount for this year is £12,270, but from that you need to deduct two things, firstly the first £100 per week of smp doesn't count towards tax credits - so you need to deduct £3900 from £12,270 leaving £8370. From that you also need to deduct any redundancy payment (if included) as that counts as capital and not income (someone correct me if I remember that one wrong).

 

With this year's tax credits based on this year's income, you may still have been slightly overpaid - but not by as much as you thought. You're also entitled to be classed as working while receiving SMP - so if you told them your employment ended in May - then you should still have been paid working tax credit during your smp period and I believe for 4 weeks after, regardless of whether the smp was paid as a lump sum.

 

You can also apply to your tax office for a rebate of any excess tax you paid after the end of the tax year.

 

Hope that helps.

 

Edited to add: just noticed Erika's post - this applies to tax credits, didn't notice you put DWP.

[rita777]

Thanks...My error , Sorry.. the letter was from HMRC not DWP

[rita777]

Thank you so much for this ! I think my breathing is getting a bit quite normal after reading your posts !!! THANKS A GREAT DEAL!

 

So it is posibble to ACTUALLY ask the HRMC to base Tax Credit payments on current year ??? My God !!! I was actually thinking of keeping silent till 20th of feb. to see what's next? so long as they'll just recalculate ... and then let things be for me ... i would then wait till the end of the tax year to claim a refund on Tax deducted ..

 

But ... Please I need an answer to this .... if I decide to wait to see how it all unfolds.. are they going to probe more ? or fine me ???

[rita777]

Also If I call them, are my going to get into trouble , for not notifying them (HMRC) when I got the job (permanent )??

[leemack]

If you don't inform them of your drop in income they will base this year's award on last year's earnings and you will get an overpayment.

 

Did they not know you were working? Have you not been getting working tax credit?

[rita777]

Riiiightttt! I get the drift now !!! ''WORKING TAX CREDIT'' I just DID not notify them of the NEW PERM POST ... Thanks a bunch ! I would call them on Monday and update you of the outcome

[rita777]

Quick Question pls ?? I do not really understand how HMRC calculates the amount of tax credits awarded for both child tax credit and working tax credit... what would be be the difference in earning 6,000pounds and 13,400pounds Gross pay P/A.... I mean which gets the maximum Award calculation ? and if 6,000pounds gets the maximum calculation, would someone earning 13,400 get the same tax award ? if not how much will they get ?

Edited February 5, 2011 by rita777

[leemack]

Have you been paid working tax credit this year? If not, you have not done yourself any favours by not telling them about your job and SMP as you would have been entitled to working tax credit for the period. I don't think they backdate as a matter of course. If you're not working now and your SMP period has ended then you wouldn't be entitled to working tax credit now. As we've already discussed, as you're earning less this year, your award will be based on that - not on the £13,400 - if you call them and tell them.

[rita777]

Thanks soo much for the advice ! one more thing before I sum up the courage to call them... i have been self employed along i.e But from April 2009 I have not been working but they still continued to pay me the working /child tax credt based on previous year's income, I got this permanent job in october 2009 and I did not notify the HMRC , and yet continued to receive the full tax credit all through so when I called them to renew in July 2010 I told them that my gross for 2009/10 was 6000pounds , but it was actually 13,400pounds ! ..

 

I told them this because I was SCARED that they might say i've been overpaid for not notifying them of my change in circumstance, i.e for not notifying them that i was umemployed between April 2009 and sept 2009( still getting paid for full working/ child tax credit ) . and for not notifying them of the permanent job secured from october 2009.

 

My last day being made redundant was 30th April 2010, so the SMP calculation automatically started in on the 1st of May 2010, had my baby in july, I was paid off for the 9months SMP at once (heavily taxed though , around 3,500 pounds) so this means that My SMP (9 Months ) ended last month January 2011.. so if I call them how would I justify all the above ?

 

(a) For not telling them that i was unemployed between April 2009-Sept 2009 ?

 

b) For not telling them of my change in circumstance when i got the permanent job in october 2009?

 

c) For telling them that my gross pay was 6000pounds but it was ACTUALLY 13,400pounds, (they stated this on their letter:- '' figure supplied by you 6000, from your employer 13,400''

..... although i reduced this figure becos i thought i shouldnt have paid so much tax on my SMP ! ...around 3,500pounds deducted !!!

 

I am so scared of calling HMRC and implicating myself!!! If they r just going to ADJUST the payment if they do not hear from me by the 20th feb stated in the letter , i.e if they update the information themselves with the the 13,400pounds , I feel i could then call them a couple of weeks later , by then they would have dropped any EXPLANATION relating to the 6000pounds (am i right?) .. I would then update them about my present situation i.e to advice them to base their calculation on my current year income .

 

PLEASE PLEASE READ through my post, I am very worried and i need a honest opinion and experienced advice, i do not want to implicate myself the more by taking the WRONG step, I have been having sleepless nights, my baby is sleeping now and i should be ceasing the opportunity to sleep too. i am getting physically tired day by day !!! imagine the time is 3.48am now !!!