Tax credits u bunch of t--------s

OUT OF HOURS BULLY'S TRUCKSTOP BAR (INTERACTIVE)
21

:frowning: I fell foul of it when I was on nil pay sick for a while, but crammed the overtime when I returned to work.
THe bottom line told me by HMRC at the time was "You ended up with taxable pay over £18k for your household, therefore all tax credits paid to you above and beyond the base £10 a week everyone upto £66k earnings gets is forfeit. Since we’ve already paid you £2500 this year, you owe us £2k back by the end of this tax year.

I told them to take the £10 a week residue amount until it is paid in full. I got my letter saying it had finally been repaid last year, so you can work out what year this all happened in I think…

I learned the lesson, and now spend some weeks of each tax year deliberately sitting out as to keep the earnings below the magic £18k threshold.

Tax credits themselves do not count towards your taxable earnings, unlike JSA type benefits which do. This means it is better to NOT sign on every odd week one isn’t working. For instance, I might work 2 x 50 hour weeks in a month, then sit out two weeks in a month making a month aggregate of 25 hours per week average with earnings average of £1k split across that month. Since the aggregate working gross for the year will be £12k, I get and keep the tax credits of well over £5k on top of that, and only pay tax on about 6k of the earnings (because most of us have a tax-free allowance of about 6k), or about £1500 in total. Thus I work only about half the time, receive a net £15500 a year, and get to keep it all without even bothering about JSA and other benefits. :sunglasses:

If I did a job paying £25k gross instead, I would end up working flat out to take home barely more money after tax has been deducted, and I’ve forfeited all tax credits that would have topped me up below £18k. :frowning:

If by some chance one doesn’t get work for about 4 weeks on the spin, it is then worth signing on, as HMRC will stop tax credits once the 4 week rolling average falls below 16 hours (for 2011-2012) and 24 hours (April 2012 onwards) which is a bit of a game changer come April. You would be encouraged to work more full weeks, and sign on even less in the odd unemployment weeks. :confused:

It’s a bit like using JSA in the same manner as POA. You don’t do it unless you KNOW you are going to be out of work for at least 2 weeks on the spin. :open_mouth:

One week on, one week off throughout the year would mean never having to sign on, and maxing out the tax credits instead which as I’ve said, don’t count towards the taxable pay aggregate in themselves. :sunglasses:

22

oldsid:

axletramp:

Harry Monk:

oldsid:
If you hadnt indulged yourselves by having more children than you could afford to support in the first place, the taxpayer wouldnt be having to give you charity in order to provide them with what you cant provide

Err, but both he and his wife are taxpayers?

Yes, this is ■■■■■■■■. Oldsid has obviously forgotten the time when you paid LESS tax as the family started increasing. Nowadays you have to claim tax credits instead. Also, couples would get married at a certain time of year in order to claim a tax refund.

Why should you pay less tax to support an indulgence, its like saying an alchoholic should pay less tax as they have to support a drink habit

How is having a family being indulgent?
You need to think of the children.
Go forth and multiply.

23

oldsid .
i would understand and agree if he and his mrs were both dole scrougers and taking but not giving but that aint the case here , they both accepted whatever they were told they could have but that amount was wrong , not a fault they had was it .

i know of at least one family of sodding hundreds that have never done a days work and get more money than i could ever earn … boils my blood that does :imp: but thats taking and not giving and it aint the same thing .

24

bowser:
oldsid .
i would understand and agree if he and his mrs were both dole scrougers and taking but not giving but that aint the case here , they both accepted whatever they were told they could have but that amount was wrong , not a fault they had was it .

i know of at least one family of sodding hundreds that have never done a days work and get more money than i could ever earn … boils my blood that does :imp: but thats taking and not giving and it aint the same thing .

I agree with all that it just seemed like a selfish winge but I suppose if in the same situation I might be reluctant to give it back, other points about tax differentials seem unfair to those who choose to have no kids. I have two children and have always worked hard to support them and it just seems an indulgence to have four kids as they are one hell of an expense over the course of the 18 or so years they are at school and people should consider this before having large families just for the sake of it

25

axletramp:

oldsid:

axletramp:

Harry Monk:

oldsid:
If you hadnt indulged yourselves by having more children than you could afford to support in the first place, the taxpayer wouldnt be having to give you charity in order to provide them with what you cant provide

Err, but both he and his wife are taxpayers?

Yes, this is ■■■■■■■■. Oldsid has obviously forgotten the time when you paid LESS tax as the family started increasing. Nowadays you have to claim tax credits instead. Also, couples would get married at a certain time of year in order to claim a tax refund.

Why should you pay less tax to support an indulgence, its like saying an alchoholic should pay less tax as they have to support a drink habit

How is having a family being indulgent?
You need to think of the children.
Go forth and multiply.

Idiot

26

oldsid:

bowser:
oldsid .
i would understand and agree if he and his mrs were both dole scrougers and taking but not giving but that aint the case here , they both accepted whatever they were told they could have but that amount was wrong , not a fault they had was it .

i know of at least one family of sodding hundreds that have never done a days work and get more money than i could ever earn … boils my blood that does :imp: but thats taking and not giving and it aint the same thing .

I agree with all that it just seemed like a selfish winge but I suppose if in the same situation I might be reluctant to give it back, other points about tax differentials seem unfair to those who choose to have no kids. I have two children and have always worked hard to support them and it just seems an indulgence to have four kids as they are one hell of an expense over the course of the 18 or so years they are at school and people should consider this before having large families just for the sake of it

ok so if i say to you i only have one child and i think its wrong for you to have two would i be right ?
hes had the kids and he’s working to pay for them , they both are .

now will you put your spade down and stop digging ?

27

bowser:

oldsid:

bowser:
oldsid .
i would understand and agree if he and his mrs were both dole scrougers and taking but not giving but that aint the case here , they both accepted whatever they were told they could have but that amount was wrong , not a fault they had was it .

i know of at least one family of sodding hundreds that have never done a days work and get more money than i could ever earn … boils my blood that does :imp: but thats taking and not giving and it aint the same thing .

I agree with all that it just seemed like a selfish winge but I suppose if in the same situation I might be reluctant to give it back, other points about tax differentials seem unfair to those who choose to have no kids. I have two children and have always worked hard to support them and it just seems an indulgence to have four kids as they are one hell of an expense over the course of the 18 or so years they are at school and people should consider this before having large families just for the sake of it

ok so if i say to you i only have one child and i think its wrong for you to have two would i be right ?
hes had the kids and he’s working to pay for them , they both are .

now will you put your spade down and stop digging ?

I havnt got a spade :cry: cant afford one paying too much tax to indulge other people

28

You can still working tax credits with no kids, if you in a low paid job. So the amount of kids has nothing to do with getting it.

29

Oldsid need to rethink his comments…and to note hes had his kids, and if in the same situation would be reluctant to hand the overpay back..nice one ! We all have our problems with HRMC, and for quite a while i was receiving a tax allowance, then every tax year, they would count it as an overpayment, so after 3 yrs i got fed up, so i phoned them, told them i would pay what i owed immediately, providing they stopped giving me the allowance, talk about giving with one hand, and taking from the other, i dont need their handouts, thats what get you into trouble, but would never condem people who need help. This guy works hard, his wife works part time ( probably looking after the kids) so they deserve help, more so than the scrounging gits who claim when their kids are abroad, the africans who borrow` other kids and their birth ceretificates in order to claim more child benefit, and the immigrants/migrants who only want to be here so the rest of us can support them in their lazy lifestyles, and dont start me on the queue in calais waiting to get in. This guy deserves it.

30

Paul_Humphreys:
You can still working tax credits with no kids, if you in a low paid job. So the amount of kids has nothing to do with getting it.

That’s right, I get working tax credits because I didn’t earn much last year.

31

We are entitled to tax credits. We just don’t claim it. I don’t claim dole and I’m skint. But I’ll work when I can, and if the Taxman wants to give me money. At least work out the correct amount to stop these events occurring in the 1st place. This is the OP’S complaint. They screwed up, yet he has to repay. So get off the hardworking guys back. Self righteous prick.

32

to the o/p
i,ll think you will find if you have been overpaid you dont pay it back in a lumper to them they just adjust what you will receive in future years so you slowly pay back what you owe by getting less each week if that makes sense

Reducing your ongoing payments

If the Tax Credit Office has paid you too much in this tax year, or a previous year, they’ll automatically reduce your ongoing payments. This is until you pay back the overpaid money.

The amount they reduce your payments by depends on whether you get tax credits in full, or at a reduced rate. You get tax credits at a reduced rate if your income is too high to get the maximum amount.

Check your award notice to find out if you get tax credits at a reduced rate. If you do, it’s shown as ‘reduction due to your income’ in part 2 - How we work out your tax credits.

If there’s no reduction shown, because of your low income, the most that will be taken back from your ongoing payments is 10 per cent.

If you only get the family element of Child Tax Credit, up to 100 per cent will be taken back from your ongoing payments.

For everyone else the Tax Credit Office will take back up to 25 per cent from your ongoing payments.

33

Chaversdads correct.i informed the taxcredits office 2 years ago that my wife has ha part time job so please update your records for our tax credits. my income was 35k hers was 5k that’s 40k per year.we was awarded£ 39 per month so all was ok,next few weeks we got letters saying your income is £80k per year so we have been overpaid and you will have 2 repay all back…they added 4t0 + 40 and got 80… I explained 5 times by letter and phone calls and was told yes its a mistake made by our computer…10months later after numerous court letters we got a court date…we took our p60s 2 court and showed the court…totall income earned £39997 2009/2010.the judge threw the caseout…if I earned 80k I would hav said ■■■ the tax credits…so the 10 months that we did not get tax crddits was told you can reclaim the 10 months back pay credits but the time limit to reclaim is 9 months .so sorry 2 late.NOW REMEMBER…every 1 who works gets awarded tax credits based on there income…the income limit we was given was 75k

34

we had a similar letter before xmas saying we had been awarded too much and this would be taken back by reducment of future payments, it did feellike a kick in the teeth, as you do account for this money coming in, (wether old sid likes it or not we are entitled to this benefit) we did ask them to relook at our case and they came to the sae conclusion, it was only when we were looking at the paperwork for other info that we noticed they had missed my youngest childcare allowance… so luckily at the mo we are back to normal… but in another case the tax are claiming back unpaid tax from 2005, when i asked i was told i had 5jobs at the same time and was,nt paying tax on 1 of them, how the hell i can do 5 jobs at the same time is beyond me and i keep proving it to them but they are still reclaiming this tax, it as taken nearly 12 months to try and sort this out with sevarl different reasons being given by the tax office, the last one was sent by a guy that had ski at the end of his name and the letter was written in broken english that no-one can understand. it is now in the hands of my local MP who reckons the employees of tax office ect don,t understand the sytems either and replies are based on the closest matched reply on a automated computer system…

35

As of April our tax credits stop because we now apparently earn too much money.

Also have a letter from taxman saying i owe them £1800 because they put me on an nt tax code because i spent so much time out the UK then they changed their minds a few months later and now i owe them. Tossers

36

oldsid:

bowser:

oldsid:

bowser:
oldsid .
i would understand and agree if he and his mrs were both dole scrougers and taking but not giving but that aint the case here , they both accepted whatever they were told they could have but that amount was wrong , not a fault they had was it .

i know of at least one family of sodding hundreds that have never done a days work and get more money than i could ever earn … boils my blood that does :imp: but thats taking and not giving and it aint the same thing .

I agree with all that it just seemed like a selfish winge but I suppose if in the same situation I might be reluctant to give it back, other points about tax differentials seem unfair to those who choose to have no kids. I have two children and have always worked hard to support them and it just seems an indulgence to have four kids as they are one hell of an expense over the course of the 18 or so years they are at school and people should consider this before having large families just for the sake of it

ok so if i say to you i only have one child and i think its wrong for you to have two would i be right ?
hes had the kids and he’s working to pay for them , they both are .

now will you put your spade down and stop digging ?

I havnt got a spade :cry: cant afford one paying too much tax to indulge other people

Bad day at work, or are you just on here to peee people off for the fun of it?

The OP and his wife has paid taxes for a while, just like you have. I think deep down there entitled to have it as they have paid into the system and should be allowed to have it back.

37

No one is paying any attention as usual. Oh well. :neutral_face:

Whatever anyone thinks, it doesn’t increase the amounts paid to those above and beneath you. It is your own responsibility to ensure you get paid as much as you can, and not moan because you can’t be arsed to do anything about your current situation.

I don’t believe last year’s earnings has much to do with it, as I did over 40k last year, and this has neither decreased or increased my payments. THIS year’s earnings on the other hand affects it every time I update HMRC as to my average earnings! I do this, to ensure I get the right amount and don’t ever end up owing some TC back.

Tax credits are divided into two elements:

Working tax credits for those earning between £8400 and £18,000 (as of April 2012)
which taper off as you approach £18,000pa. You get these regardless of what you earned in previous years, or next year. Only the tax year you are currently in matters. Tax credits are awarded on a W1M1 basis meaning if your income for the first 6 months of the year is £4200, you’ll qualify for the maximum payout. If you then go back to work as I once did, and push your year earnings not only above £8400 for the year, but above £18,000 to qualify at all then you have to pay it all back, as you were awarded based on your current situation being ongoing. These tax credits are NOT a “cash in your hand” benefit like JSA, and are not taxable.

Child tax credits are for anyone with children under 16 living in the same household that no other breadwinner is responsible for. If you claim these, and your wife later goes back to work, you’ll have to pay some or all of it back. Tax credits pick up sharply if the household income falls below £18000pa which is most likely to happen if one half of a couple does not work, and the remaining half either does low-pay work, works fewer hours, doesn’t do overtime, or a combination of all of the above. To max out child tax credits therefore you need to
(1) Have a partner that doesn’t work
(2) Have children under 16 living with you
(3) Maximise by pushing the household aggregate earnings under 18k as much as you can.

In my case, my estimated earnings for the year are aimed at being between 10k and 15k. Depending upon how much agency work comes my way leading upto good friday weekend (a possible premium payment there?) when the current tax year ends. At present, my earnings are about £8500 for the year. If I worked the following 5 weeks on the spin, grossing £500 each week, I might just hit £11k for the year. More than likely, it’ll be somewhere between where it is now, and £11k.
The last payments of tax credits for the year will be bumped up considerably IF I don’t get much work out of the agencies.
If I DO get plenty of work, my tax credits will reduce, but I’ll get more in my end-of-year rebate pot, as it’s all taxed W1 as well, meaning I’m overpaying, and effectively using HMRC as a moneybox! :grimacing:

For me, the bottom line is I work what and when I feel like, as less is more. I might do a 15 hour sunday one week, nothing the following week, a full 50 hour week in wk3, and nothing in week 4. My 4 week average is over 16hours which is what HMRC want to hear, so I get qualify for the full payout, less whatever my gross earnings go over by over the whole year.
There are a legion of combinations to achieve an average of 64 hours over a 4 week period. Mine is but one example. :exclamation:

Looks to me as if my last few TC payments will be higher rather than lower, should the current famine of work continue.
I woudn’t be signing on for JSA at any point unless I’m likely to be doing “nothing” 2 weeks on the spin as was the case in January where I signed on for 5 weeks, but only got paid for 3 because I’d foolishly done 2 odd days in the first two weeks of my claim - enough to go against 0 hours JSA entitlement, but not enough to keep the tax credit ball in the air. I won’t be making that mistake again come next tax year when the average needs to be 24 hours over a 4 week rolling period. :wink:

Now if I can do all this with only a single child, then I’m sure others can do better out of the system that is effectively encouraging both you and the missus to spend more time at home with the kid(s)!
Dual incomes, lots of overtime, & too many hours are penalised. Therefore don’t do it, and make the system work for you whilst holding your head up high because you are STILL working flat out when the block bookings come your way!

If the only thing in life is the unreliability of others, then rely on their unreliability and prosper!

38

oldsid:

bigvern1:
What right of it is yours, how many kids people have? FFS. :unamused:

He can have fifty as long as I dont have to pay for their upkeep

and I dont want to pay for your hip replacement and a health care worker to wipe your arse Sid when you are incapable!!!

39

Yeah…Old dribbling sid. When you have to push to ■■■■ and then can’t stop, and some Thai home help has to wipe it up, cos’ you can’t remember doing it. :laughing:

40

bigvern1:
Yeah…Old dribbling sid. When you have to push to ■■■■ and then can’t stop, and some Thai home help has to wipe it up, cos’ you can’t remember doing it. :laughing:

is that what happens with you? :smiley: :smiley: :smiley: :smiley: :smiley: :smiley: