Tax Credits Underpayment?

[Snow Owl]

Not sure if anyone knows about this!

Just going through my renewal pack and realised that they never took my SMP deductions off my income for last year so my income is actually £3100 lower than what they have me down for!

I need to ring them I know, but does anyone know if I'm likely to get a repayment or anything?

Many thanks!

 

[Pearls18]

Yeah you should get the money back, it's an easy mistake to make as they don't advertise it well someone made a thread about this in general chatter recently (sue_88) so yeah you will hopefully be in for a nice back payment!

 

[pinklizzy]

I'm really confused by this! We're not eligible for tax credits because it was based on my earnings for last year but someone told me I'd get a payment next year once I'm back at work as it'll be based on SMP? Is that right?

 

[Pearls18]

I'm really confused by this! We're not eligible for tax credits because it was based on my earnings for last year but someone told me I'd get a payment next year once I'm back at work as it'll be based on SMP? Is that right?

I get confused as well, I *think* you can ring up and give a projected income for this year and they might let you have them now? But be sure to let them know what next year's income will be so you don't get overpaid. If not then yeah you should get them next year if your income is below the threshold while on maternity, but again make sure you let them know ASAP what your income will be the following tax year so not to be overpaid. Does that make any sense lol??

 

[nugget80]

They will disregard the first 2500 so you might get something based on remaining 600...

 

[Abz1982]

I'm really confused by this! We're not eligible for tax credits because it was based on my earnings for last year but someone told me I'd get a payment next year once I'm back at work as it'll be based on SMP? Is that right?

I get confused as well, I *think* you can ring up and give a projected income for this year and they might let you have them now? But be sure to let them know what next year's income will be so you don't get overpaid. If not then yeah you should get them next year if your income is below the threshold while on maternity, but again make sure you let them know ASAP what your income will be the following tax year so not to be overpaid. Does that make any sense lol??

Yes they will do this. We got a projected one for next year with this years claim - based on earnings being the same.

We technically earned over the threshold, but you then take of vouchers each and smp it takes it under.

Next year we wont get it. So have 7 months to pay off as much as we can!

 

[sue_88]

This happened with me. I was on paid maternity for 39weeks last tax year and this needed to come off my earnings when I sent me tax renewal but I forgot to do it as I didn't understand it at that point and so rung them up to tell my actual 2013/2014 income and they sent me £1000! Nice!

I also update my earning throughout the year so I told them my earnings were dropping when I went on mat leave so I could claim tax credits straight away instead of waiting until the next tax year.