Does this sound right

[hulahoop09]

Hiya

Okay so we have an open ctc claim but dont receive oayments as are over the threshold. When baby arrives we will be able to claim some.

On our p60s for last yr mine was 11131 minis 11wks smp and hubbys was 17901. So a joint of actual 27932. Based on this we could get approx 157pm ctc. But theres a chance our joint income this year could be approx 26700 which would mean approx 200pm ctc.

BUT based on an smp calculator which may not be v.accurate, and what I have earnt so far our joint eqrnings could be approx 28100 which would give us approx 152pm.

Now am I best to give them the higher of the 3 amounts and if we do end up earning closer to the 26700 is it a big enouugh drop for them to pay us anything we have been underpaid at the end of the tax year when we do our renewal and then give them new figures for 2014-15 or will they onky do if its a big amount by sending a cheque? I deffo dont wanna be overpaid but would ideally not be dramatically underpaid cause every penny counts. Lmao.

Xx

 

[hulahoop09]

..........

 

[babybear11]

I believe they add 2500 onto the estimate you give them if it's lower than this years or at least according to entitled too website? X

 

[hulahoop09]

Oh do they so then if you do earn the estimate you gave them the will lump sum pay you the difference at the end of the tax ear surely? Adding 2.5k can make a big difference in what someone could get each month. Eeeeek. Not even sure what to do for the best! I may give them the 28100 so at least its more and hopefully we wont get overpaid.

It could make even more of a difference come next july when we have to pay childcare but I guess the estimate I give them again then will be more than this year.

Xx

 

[hulahoop09]

The entitled too website differs quite a bit in what we could get in tax credits compared to hmrc which is the lower of the two so I tend to use hmrc as a guide and if we get anymore its a bonus. Lol. Xx

 

[babybear11]

I dont think you get the difference back I believe the 2.5 is disregarded but could be wrong. That 2.5 k is the difference between us being entitled and not entitled so ive just not bothered applying at all x

 

[hulahoop09]

Wtf thats shocking! Ik v.confused now as what figure to give them as if they add 2.5k onto the figure then it means our approx payments drop from 150 down to 85 which is a big difference of 65pm!

Xx

 

[hulahoop09]

Maybe Im better giving them last years actual of 27932 which is also taking off my 11wks i was on smp and the difference of what we may be overpaid save it?!

But then I get confused on what figures to estimate give them for nxt yr as if they are gonna chuck 2.5k onto the end of everything they are screwing people over quite a bit and it could make a big difference in the childcare we get nxt yr.

Aaaaarrrrggghhhh confused.

 

[babybear11]

Google tax credits income disregard it gives examples for you to make sense off.

However, the first award following a fresh claim is always based on income from the previous year. The TC600 claim pack only collects information about the previous tax year. So if a claimant applies for tax credits on 6 June 2013, HMRC will award tax credits for 2013-2014 based on their income for 2012-2013.

TCA 2002, Section 7(3) goes on to explain how to determine relevant income. In summary this is:

For income rises – income disregard £5,000

(a) If current year income (CYI) is greater than previous year income (PYI) by no more than a certain amount (known as an income disregard, the final award is based on PYI;

(b) If CYI is greater than PYI by more than the specified income disregard, the final award is based on CYI less the income disregard, and an overpayment may arise.

For falls in income – income disregard £2,500

(c) If PYI exceeds CYI by no more than a certain amount (known as an income disregard) the final award is based on PYI ;

(d) If PYI exceeds CYI by more than the specified income disregard, the final award is based on CYI plus that specified income disregard.

 

[hulahoop09]

https://www.revenuebenefits.org.uk/...tax-credits-work/understanding-the-disregard/

I had just been reading the same. Lmao. So even though we may earn 28100 or possibly 26700 this year we can just base it on last years actual of 27932 as even of we have an increase it will be less thank 5k and again next year our pay may go up by what they have of 27932 to approx 30k so again it wont matter much as it is still under a 5k rise if I am reading it all correct. lol.

Xx

 

[babybear11]

That is the way I hsve understood it. They dont half make things difficult!!! Xx

 

[hulahoop09]

They just dont want people to apply. Lol. This year I think.we could of got something like £3pm I said its not worth it, the admin wuld probably cost more. Lol.

Xx