HMRC, working out Tax Credits

[di30]

When working out Tax Credits am I correct in saying that the HMRC work this out from April to April?

This is on behalf of a mate who has no access to a computer, so I said I would ask on here just to be sure.

She says that the HMRC are querying 2 lots of wages, she does not work herself as she is still at home as a full time mum to a toddler, but says her husband worked at one job as a contractor from January 2010 to August 2010 where then he had another job.

They have calculated total amount from the 2 jobs as from Jan 2010 to April 2011.
But shouldn't it be as from April 2010 to April 2011?

This is what her letter says......

Income:

You have told us that your Income for 2011 was £13,908.
The details I hold about you for that year show that your total Income was £22,927.00, from the following sources -

Mr XXXXX XXXXXXXX
Total Employment £13,908.00 (Employer Name) Started August 2010
and
£9,019.50 (Previous Employer).Started Jan 2010 to August 2010 then started the job above.

Her point is the bottom one, they seem to have totalled all wages earned as from when he started in Jan 2010 to when he started the other employment in August 2010) so total pay to date.

His P60 2010 to the April 2010 shows he earned Gross pay to date £5,922.47.

Does this make any sense folks please?

It looks like to me they have added the £5,922.47 earned up to April 2010 to what was earned until after he finished in August 2010.

Thank you in advance.

[garlok]

Re: HMRC, working out Tax Credits

As far as I know Di, the income figures are totalled from April to April of the previous tax year. Exactly as you say. Although for us the things are never settled until the July although they maintain the estimated level.

If you are prpeard to wait in the queue we have found the telephone service really helpful if you appraoch them rpeoperly and you ahve your figures at hand.

regards
Garlok

[di30]

Re: HMRC, working out Tax Credits

As far as I know Di, the income figures are totalled from April to April of the previous tax year. Exactly as you say. Although for us the things are never settled until the July although they maintain the estimated level.

If you are prpeard to wait in the queue we have found the telephone service really helpful if you appraoch them rpeoperly and you ahve your figures at hand.

regards
Garlok

Thank you Garlok

I will let my mate know, as its not mine and I don't think the HMRC will allow me to deal with this on her behalf - I am not sure, but I expect she will try giving them a ring at some point anyway, as her and her hubby does not understand how they worked this out.

Cheers
Di x

[5corpio]

Re: HMRC, working out Tax Credits

Hi Di

Give her this number, as its a landline number so he/she can use it via mobile (assuming they have free mins usage)......Avoid the issue of having to pay for an 0845 number from your Mobile or Landline Phone local rate
HMRC Landline Number Tel: 01355-359022

I've used it for my HMRC problems.......still got to pay it (already paid now)

[di30]

Re: HMRC, working out Tax Credits

Hi Di

Give her this number, as its a landline number so he/she can use it via mobile (assuming they have free mins usage)......Avoid the issue of having to pay for an 0845 number from your Mobile or Landline Phone local rate
HMRC Landline Number Tel: 01355-359022

I've used it for my HMRC problems.......still got to pay it (already paid now)

That is fab 5corpio, I will take a note of this now, thank you so much x

[di30]

Re: HMRC, working out Tax Credits

Not sure if they have rang yet, but they said thank you for the telephone number.

They gave me a copy of one of the final payslips and as all payslips differ with every business I do note for the 4 final months before starting the new job in August 2010, the final payslip from his first employer says earned from April 2010 to August £5,033.00.

At the bottom of the payslip it says:
Total Taxable pay to date £9019.50, so would this be because the Gross pay does not equate to taxable pay?

Maybe this is where the confusion comes in??

[garlok]

Re: HMRC, working out Tax Credits

Thats a real possibility Di. It occurs because of the way PAYE works. I think its worth a chat with them properely on the phone. My OH normally does all of this as she is accountancy trained and she says they have always been very helpful to her when we have been sorting out any issues.

regards
Garlok