Lowered hours at work. Do I need to notify HMRC?

[BellaBoo0512]

I was working full time and getting a bit of help towards childcare.

I lowered my hours in February due to personal reasons and now work 25 hours a week and am no longer entitled to tax credits because I don't pay as much childcare. This suits me fine as I hated claiming tax credits as they always managed to cock things up one way or another.

In April my tax credits payments stopped completely as I earned slightly more last year than the previous.

I didn't notify tax credits of my hours changing but did notify them that I wasn't paying as much childcare.

My question Is, do I need to notify HMRC that my weekly hours are now lower? They also have my salary £6,000 a year more than what it is.

I am worried that I will get in to trouble because I didn't notify them straight away but if I am no longer entitled to tax credits then do I need to tell them or not?

 

[Rags]

I have to say that I tend to inform them of everything, often I don't get any tax credits, sometimes I do. Having lowered your hours and with less income than you had previously you may well find that you are now untitled to receive something.

 

[BellaBoo0512]

I have just checked on the tax credits online calculator and it said that were entitled to about £20 a week but I'd rather not claim it.

I'm just worried that if I tell them of my changes now they will give me a hefty fine

We ended up being overpaid by about £800 last year despite me informing them of changes. They said they will claim that back from future awards but I don't know how they will do this if we aren't entitled

 

[Rags]

If you aren't entitled to anything they will make an arrangement with you to pay it back by direct debit, I have a friend paying back an over payment at £65 a month after her circumstances changed and she didn't realise she needed to let them know. They were really reasonable about it with her, she wasn't made to feel bad about it. Her work and relationship circumstances are changing again at the moment and she will again be able to claim, her plan is to re-apply and she should receive enough to finish paying back her previous over payment - if you are entitled to £20 a week then even if you are awarded it and they take it to cover the over payment at least you won't be out of pocket?

 

[Wobbles]

You might find you are entitled/entitled to more when you reduce your hours .... it's ****ed up for some peoples circumstances. You may get child and working tax credits.

I would inform them and IF you do end up owing you can repay minimal, I wouldn't panic. As long as you put a plan in place when notified it's early easy.

 

[BellaBoo0512]

Thank you for your replies. I presumed that if I lowered my hours my payments would stop as I'm paying a lot less in childcare. I was fine with this as I don't like claiming benefits. I'm just worried they will fine me for taking so long to tell them. Can I stop claiming all together even if I am entitled?

 

[Rags]

You can stop claiming whenever you want, it's up to you. Although your child care payments have gone down so have your earnings which is why you may still be able to claim if you wish. I've never been able to claim for child care as my family have always covered care for me and the way my earnings and hours work it's often when I'm on the lowest hours and could do with some assistance that I can't get any so I log on and update my hours/jobs and income fairly often.