child tax credits and annual tax returns

I submit annual tax returns and declare the annual details when claiming child tax credits. Perhaps I've been naive but I sort of got the (wrong) impression that the return for 02/03 was to be used to calculate the child tax credits for 03/04 and so on. (This is what they did after all). I had a bad year in 02/03. I dutifully declared the details in my ctc claim and they started paying loads of money into my bank account. I sort of thought I was entitled to that money. They never said "This is a provisional award based on best information and it will be reassessed when you declare your actual

03/04 income, so a) are you sure you want to tell us about your irrelevant bad year and b) now we've paid out, don't go spending it because you'll probably have to pay it all back". They just said "Here you are. This is what you're entitled to based on the info you've given us." So anyway now I've got a massive overpayment which has fairly jiggered my finances. What I want to know is, was anybody else in the country under the same misapprehension? Did it explain anywhere in the bumf that 03/04 would only be finalised when they received the actual 03/04 tax return details? figgy
Reply to
figgy
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They don't use your tax returns (except perhaps for cross checking) as there are slight differences in the income that counts towards income tax and the income that counts towards WTC/CTC. So you need to give the same government department details of your income twice.

That's why they've had to spend a fortune on those annoying adverts telling us to inform them if our circumstances have changed. Although they don't really make it clear that they mean "since the year your assessment was based on" rather than "since you filled the form in".

Yup, loads. For some it's causing serious hardship (see the discussions in uk.gov.social-security).

Almost certainly, but obviously not very clearly since a lot of people have been caught out.

I think the biggest mistake was they kept telling us "let us know if your circumstances change", however the first year's claim asked for your 01/02 income and you filled in the form late 02/early 03. So if you have a bad 01/02, then got a good job mid 02, then filled in your form late 02, you declared a bad year but your circumstances had not changed *since filling the form in* so you thought there was no need to tell them.

What you really should have done was filled the form in, wait a couple of weeks, then spend 5 hours trying to get through to their hopelessly understaffed helpline to tell them of your change in circumstances since 01/02. Why you couldn't just report your *current* circumstances on the form is beyond me. This whole thing is a shambles.

Reply to
Andy Pandy

Tax Credits are a total sham - i've just had my fingers burned because i got a job - now they've asked me to pay it all back for whole of the finacial year (April 2 April)

Because it's based Annually from Apr-Apr - you have to be careful when you lose/regain your job

If you "happen" to be out of work for whole year Apr- Apr, you get full tax credits for the whole year

If you "happen" to be out of work for whole year Sept-sept - you get f*ck all?

And it took a government to figure this out?

I wouldn't employ them as cleaners - Spoke to the Inland Revenue, "Manager" of Tax credits dept & this flew right over her empty head - she just didn't get it

"Andy Pandy" wrote in message news:413b024e$0$936$ snipped-for-privacy@ptn-nntp-reader03.plus.net...

Reply to
JethroUK

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