Child Tax Credit Question

[hulahoop09]

Hiya ladies

Okay so I am always confused by what way best to approach CTC. Atm we have an 'open' claim but dont actually receive a payment as we dont qualify.

We are due baby number 2 in november so do I then call to update our already 'open' claim?

Now comes the mathematics Sorry if I break your brain lol

Basically some of last year (2012-13) I was on maternity leave (approx 11 weeks start of the tax year). Our total earnings on P60 was total of £29033, am I right in thinking I then take off £1100 for the 11 weeks I was on maternity leave? Which makes our total £27933? (I didnt update them with our new amount as the letter only said contact them if it was less than what was on the letter). Based on the last figure and 2 children we could possibly get approx £155pm CTC when the new baby arrives.

BUT this year I will be on maternity again and our pay will be less yet again. For this year it will be (me closely estimating) joint income of approx £28521. I will be on smp for approx 28 weeks this tax year which would deduct £2800 from this total giving us a total of approx £25721. Based on this and our 2 children from Nov we could possibly get approx £231pm CTC.

As I am aware if you earn a small amount less than the figure you give them (so if I give them last years of £27933 but if we earnt the £25721 instead) they wont award the difference in payment backdated at the end of the tax year (so the possible extra £76pm) so we could possibly lose out on approx £300 if I give them last years figures?

So how do I work it, when I call do I give last years total but then say we will earn less this year and give them my estimation (would they still take this into account because I am giving it at the time of claim). If we are able to do that and we do get the higher payment I would be sure to save the extra anyway (as much as we could do with the help while on smp) just incase they say they have overpaid and at least I have it to give back. If not then it can go to childcare costs when I go back to work in the new tax year.

Come summer 2014 when I go back to work I will give them a new estimation for that year as we will earn more than this year and dont want them to overpay our childcare.

Sorry if I have made no sense but its so hard to word and no one I know knows how these things work as they are on full benefit or no CTC

TIA

xx

 

[Mrs.S.]

Hiya - they can never update a claim until the day that your circumstances have changed so if you tell the that you will be on mat leave from November then they will tell you to phone back when you are on mat leave (and then again after the baby has arrived so that they can recalculate). You are right that they don't take the first £100pw into account when your on mat leave so I would phone them now and let them know that your calculations for last year are wrong because of this.

Hope that helps! X

 

[6lilpigs]

Does having a baby after October automatically switch you to the new Universal Credit??

 

[Mrs.S.]

Not unless you live in one of the universal credit areas ie. Manchester. It won't be rolled out throughout the whole uk for ages - aiming for 2017 I think. It will just be the same process until you are notified differently in your area x

 

[hulahoop09]

Thanks mrs s. No I wasnt gonna tell them about baby til he arrives. Was just unsure if to give them last yrs figures in nov or what we will earn this year as if I tell them in april we earnt kess this yr because its under ?5k I heard they wont pay you any difference you could of got which would work out by 70pm.

I havent updated figures this yr as the difference of what we eqrnt and just 1 child would give us about 3pm, im sure the paperwork would cost more to sort. Lmao.

The universal credit thing confuses and worries me. I believe upto 2015 or 2017 is the timescale for changeover but not sure if because we have an open claim that we wont be swapped over yet and if its certain benefits and areas first etc.

I have a feeling if we do go on uc our childcare we would get help with would be cut somewhat which I really hope isnt the case

Xx

 

[hulahoop09]

Ah jst seen reply mrs s. We are in west mids.

I think also when ot rolls out to other areas they will first start on those making.new claims to be swapped over before they transfer those alreadt receiving some sort of benefit. Could change though. Lol

Xx

 

[Mrs.S.]

I wouldn't worry about the change over just yet hula hoop itll be a while off! I would give tax credits the info about all the changes as soon as baby no 2 comes along. Don't lose out on money you're entitled too! Xx

 

[hulahoop09]

Haha. Thanks. I figured we may be able to get a lot less but if its more I will save the extra incase they overpay and it will be a bonus end of tax yr. Lol.

When I call in nov do I say i want to update we now have new baby, this os what we eaent last yr but for 2013-14 we will earn approx x amount for me and x amount for hubby as I am on smp and will they then calculate based on the estimation?

Xx

 

[Pearls18]

Tax credits have always allowed me to give an estimate of the year and go from that. You can either do that, or leave it and get a back payment next year.

 

[Mrs.S.]

Yup I think that will be fine x

 

[hulahoop09]

Thanks ladies, I think I prefer to give an estimate as if I give last years amount then update end of tax year with this years actual which works our a couple of thousand less but would make an approx £300 difference to what we could get over the 4 months because it is only a couple of thousand less that we earn I dont think they will backpay as I am sure I have read anything up to 5k less they dont take into account.

Confusing! Haha.

xx

 

[Abz1982]

Last year we earned 28k and we have been awarded £329 a month! Its double what the HMRC calculator told me!

 

[hulahoop09]

Wow! Bet you were pleased. Is that for childcare aswell or jst ctc/wtc?xx

 

[joo]

Last year we earned 28k and we have been awarded £329 a month! Its double what the HMRC calculator told me!

i just don't understand tax credits. Last year we earned about £25k but we get about £215 month in tax credits

 

[Pearls18]

If you get the childcare element it's going to depend on how much you pay for childcare as well as what your income is. If you don't pay childcare then it'll be very different from those who do.

 

[hulahoop09]

Last year we earned 28k and we have been awarded £329 a month! Its double what the HMRC calculator told me!

i just don't understand tax credits. Last year we earned about £25k but we get about £215 month in tax credits

As marinewag said if you do/dont pay childcare and also what amount you pay and how many children you have makes a difference in the ctc you can get.

xx

 

[6lilpigs]

PLus I think if you have a child under 1 theres still a difference??

 

[hulahoop09]

Ah is there? So many different rules they go by! I will try figure out what we would get when our lb hits 1, all our ctc and the small amount of childcare element will all be going to childcare then we will be topping it up. All so confusing. Lol.

xx

 

[Pearls18]

PLus I think if you have a child under 1 theres still a difference??

I thoooooought that had been scrapped now, we got the baby element when DS was under 1 but pretty sure the April of his first year it stopped, would be nice if they haven't though lol. Although I've never understood it because why do you need more money when a baby is under 1? That's usually the cheapest age a child will ever be lol!

 

[hulahoop09]

Lmao so true! My almost 2 year old is obsessed with shoes atm all she keeps saying is wow at shoe adverts and new shoes!!

xx