NEW AWARD OF TAX CREDIT FROM APRIL

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  • #19867
    Anonymous
    Guest

    😥
    Has anyone any idea what we do with this? We have had a claimant with her new award from April 04 ( one of the first we have seen).
    It says she was overpaid tax credits last year.Her tax credit award from April is nil.The award letter says she was overpaid last year and has to repay £32.65 and this will be collected from future years. But then it says her employer will pay her £1.18 a day from 02.05.04 ( how? she isnt entitled to anything from April, it says so on the front page).
    I know we are supposed to use the amount she actually receives but it appears she isnt paying back the arrears ( its not deducted from the child tax credit).
    The IR arent very helpful ( surprise) and we just want to sit in a darkened room sobbing quietly.
    Do we take the WTC as £1.18 a day or nil?

    #1251
    lesleymain
    Participant

    Oh I know what you mean…….I am at the screaming loudly in the corner and banging head against very hard surface stage!!!

    Is the award you’ve had an Actual award? – you can tell from the code at the bottom it would say TC602(A). If its not read the following it may help!! – then again………. 🙂

    I have spent this morning looking at the following scenario I have a TC602(D) letter which means they still have to finalise the award

    The payments for WTC state the following

    Full amount for period is £3120.75 (same figure as on front page)
    Amount you owe us is £65.29
    Amount we have already paid is £354.33
    Balance to be paid is £2831.71

    I was silly enough to check that £3120.75 minus the overpayment and minus the amount already paid equalled the balance and guess what it didn’t. Even just taking the award amount less payment didn’t work out so I phoned the Helpline.

    They said that because this award isn’t finalised they will not actually recover the OP until this is done. I still queried that this didn’t work out and eventually we figured out that the “full amount” quoted already has the £65.29 deducted therefore they are basing the payments on an award of £3186.04 less amount already paid £354.33 leaving a balance of £2831.71.

    Clear as mud then eh!! – No where on this letter does it refer to £3186.04!!! or tell me it’s not recovering the OP

    Going back to your original query – It could be that they are not actually taking the overpayment into account yet!!! – Good Luck

    #1252
    Anonymous
    Guest

    Thanks for that. The letter we have is TC602 (A).What makes it worse is that I checked with the assessor and the claimant is no longer working so how on earth can the section “xxx employer will include tax credit with your rate of pay of £1.18 a day” apply?
    This is presumably why she no longer gets WTC because she isnt working!
    I’m inclined to say we shouldnt include any tax credit from April 04.But what do we do about the overpayment part for the previous award? I still don’t know if we should go back and revise her original award. I assume if we work on the principle of use what they actually get then we dont change it because of the overpayment.It appears the IR are not recovering it at all.
    Any one with any ideas???? And a really good remedy for headaches?

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