WTC Cut!!

[lucysmummyx]

Hello,Looking for some urgent help, HMRC unexpectedly cut my WTC by £40 per week, I received no new award notice. I obviously phoned them, and they told me this was my interim payments, they have guessed what I earned last year (obviously highly incorrectly), and I will be able to sort it out with my renewal. I asked if I could do my renewal now, then, to which they said no, not till I get the pack in the post.The only problem is, I have had a financial statement done (prior to this cut) my MAS, due to being in difficulty, and after I pay all my ESSENTIALS, such as council tax, rent, food, utilities, childcare and travel to and from work, I am left with 43p per week for luxuries. So basically nothing, and I'm guessing it doesn't take a mathemetician to work out that I depended on my WTC to get by, and even then we only just get by by the skin of my teeth, and now every week on going I am spending £40 which I physically do not have to spend, so most of the time food has to be cut out.I have applied to see if I am eligible for some housing benefit for this period, but they need an award notice to show my cuts, which HMRC said they will send in due course, no use to me. I think I am going to have to leave my job come the end of the week because I simply cant afford this and no one will help me - I don't want to spend my life sitting about on my ass being lazy and not working. Does anyone know where I can turn for help regarding this??So grateful for any!Ash

[blondebubbles]

It is true that you cannot complete your renewal form until it is issued. There is nothing you can do to change this. They have started to issue them now but as you can understand there are literally millions to send so they are issued in daily batches between now and April.

 

What you can do is update your 2014/15 estimated income to see if this would make a difference in the mean time.

 

If you want to give more details of your income then Ian be able to help you more.

 

What is your 12/13 income?

What is your correct 13/14 income and what does tax credits currently hold your income as?

What would you estimate for 14/15?

[lucysmummyx]

Thank you :)My 12/13 income was benefits - income support at a rate of about £70 p/w and CTC & BC at a combined rate of £80.13/14 I have earned about 12,500 in total, I think they will hold it as I have earned around £15,000, as that would be the 'pro-rata' but as I am agency employed my take home was less, as I only get paid for hours I physically worked.

[lucysmummyx]

And sorry, 14/15 will be the same as 13/14!

[blondebubbles]

Okay so your 12/13 income would essential be treated as zero because they don't count income support, CTC and CHB as income.

 

What you need to know (you may already) is that tax credits is based on your previous years income UNLESS your current year income has increased by more than £5000 or decreased by £2500.

 

So your 13/14 claim as they have it is being based on an income of £10000 (that's the £15,000 estimate that they hold minus the £5000 they disregard for income increases).

 

Since we started the new tax year the full £15,000 is being taken into account.

 

What should happen when you update your renewal is that your 13/14 claim be based on £7500 (the £12500 actually earned minus the £5000 they disregard)

 

Your 14/15 claim will be based on the full £12500 so it is correct that there should be a reduction in your claim, just not a much as it currently is.

 

You said that you had no warning of this. If you have a look at your award notice for 2013/14 it usually does detail your provisional payments for the new tax year. I'm unsure why it would not have shown this in your case.

 

Unfortunately if is a case of waiting for the renewal for everything to be updated. Don't appear to have actually done anything wrong as they are calculating your claim on the details that were provided.

[lucysmummyx]

I had a look on the letter, it says my provisional payments are the same as the first ones, and it appears it is the childcare element that has been cut where those costs have not changed, as my CTC, CHB, and WTC are all together £5 less than I pay for my childcare?

[blondebubbles]

Yes it will be reduced due to the income they hold for you.

 

Also tax credits don't pay your full childcare, it is up to 70% and then reduces based on your earnings.