EddScott

For the past 2 years every time I've given new salary details to the tax office they say we've been paid too much and have to pay the majority of it back?

My GF and I don't earn megabucks by a long chalk yet we seem to get very little in the way of tax credits.

It just seems that every year they give us what we are entitled to but when April comes around and are new salaries are given to them they want half the money back? just doesn't make sense to me. I'm assuming its becuase our joint salary has gone up over the 12 months higher than the bracket in which our entitlements falls.

Either way we've now given up even bothering with tax credits. Even our MD with joint salaries double ours gets something. TBH its not worth the hassle but following on from the youngest parents thread its does feel like the mickey is being taken somewhere.

Clarebabes

LOL, I get £4.14 a week, which no doubt I'll have to pay back because our earnings this year are going to be considerably higher than last year.

Working Family's Tax credit was much better.....

MattW

There was an article in Computer Weekly last week. Basically EDS (who supplied the Tax Credit system) was in litigation with the Revenue as to how much compo EDS should pay due to bugs in the system which meant overpayments going out. The article stated that the Revenue would be writing off so many millions to those who had been overpaid up to a certain amount. Over this figure would be reclaimed.

Must admit I am slightly worried as we get an obscene amount of money from them, and my salary isn't exactly low.

Senior_AP

Italiano.

EddScott

I'm sure many will be on a far higher wage than myself and my partner put together but our gross annual income for 03/04 was roughly £27K. Kelly started working April 03 so we notified them that our earnings increased to £24K based on my P60 and a rough idea of Kellys income as her income varies a little from week to week.

I had a rise in June and Kelly earned quite a bit more than expected hence the rise to 27K. We also pay £80 per week in creche fees for our daughter. On that basis they paid us £26 per week child tax credit and £0 working tax.

When I gave them the figures from the P60s they wrote back and said we'd been overpaid by about £700 £26 a week does make a difference for sure but had we known that it may be taken back off us we wouldn't have bothered in the first place.

Now, my wages are about to go up again somewhat and Kelly is being promoted within her job so her money will probably go up a bit and our daughter will start school in January so no more creche fees (WOOHOO!). If we go to the tax office next April with our P60s they'll want even more of us hence when April comes I will not be renewing my claim.

TBH we are not too badly off and with no more creche fees from Jan that will free up a bit of cash but this tax thing just seems a big joke to those that work.

Clarebabes

You'll be owing them money by the sounds of it if your income goes up any more!

MattW

Well I just called them up because my award seemed very high when looking at your salary details. They told me as we have a child under the age of 1 we get additional cash

+Doc+

Basically your wages have gone up so your tax credits have decreased hence you owe them money.
Next year estimate your yearly earnings more than you expect to get paid then hopefully you will get paid less than that amount and consequently they will owe you tax
In my opinion they are quite generous depending on your circumstances, if my wife goes back to work part time our tax credits will be in the region of £50 a week. :E

Muffleman

We had a guy at work a few weeks ago ask to be sacked, why ? Cos he got more money on benefits and tax credits than when he was working.

We obviously couldn't comply - so he resigned !

Unbelievable, I love paying for his type !!!

Matt

MattW

http://news.bbc.co.uk/1/hi/business/3974689.stm