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Top Working Tax Credit & Child Tax Credit topic #1594

Subject: "Improving Tax Credit administration" First topic | Last topic
vaughand
                              

Welfare Benefits Caseworker, South Tyneside CAB, South Shields, Tyne & Wear
Member since
27th Oct 2004

Improving Tax Credit administration
Fri 17-Feb-06 08:48 AM

I've been reading the Paymaster General's report again. The threshold for reporting changes of income will be raised from £2500 to £25000. Which means there will be a lot less work for the TCO to do amending in-year awards. So hopefully they will spend more time sorting out the mess. But what bothers me is that people will have much larger overpayments at the end of the financial year. Am I reading that right?



  

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Replies to this topic
RE: Improving Tax Credit administration, John Birks, 17th Feb 2006, #1
RE: Improving Tax Credit administration, Gareth Morgan, 17th Feb 2006, #2
RE: Improving Tax Credit administration, Derek, 17th Feb 2006, #3

John Birks
                              

Welfare Rights Officer, Stockport Advice
Member since
02nd Jun 2004

RE: Improving Tax Credit administration
Fri 17-Feb-06 10:54 AM

As I see it there would only be an overpayment if you didn't declare a rise in income of £25001 or more. Anything less could not result in an OP. Unless......

  

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Gareth Morgan
                              

Managing Director, Ferret Information Systems, Cardiff
Member since
20th Feb 2004

RE: Improving Tax Credit administration
Fri 17-Feb-06 12:20 PM

It isn't a reporting threshold; it's an income disregard in *that tax year*.

  

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Derek
                              

CAB Adviser, Esher CAB
Member since
09th Mar 2004

RE: Improving Tax Credit administration
Fri 17-Feb-06 02:10 PM

I think the overpayment problem will be deferred into the next tax year. If the claimant does not notify TCO of the increase then the provisional payment in the new tax year (i.e. until the annual renewal is done - which can be several months) will still be based on the old lower income and a substantial overpayment can then arise between 6 April and the date the renewal is processed.

  

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Top Working Tax Credit & Child Tax Credit topic #1594First topic | Last topic