just phoned claim line this morning to get claim form sent out for Polish couple who don't speak English
advised they need to go through entitlement questions first and although I could answer all the questions they disputed entitlement to WTC 1 person in couple gross taxable 06-07 £11,000 likely to be same this year, partner came to Uk in Jan and working for agency if lucky works 2-3 days a week
advised by help line that no entitlement as income above £11,500( where did that come from?) as no entitlement and would not issue form.
I am going to take up issue with HMRC representative at forum we attend tomorrow

Anyone else having problems?

In any case tax credits are supposed to be assessed on your taxable income for the previous full tax year. In this case it was £11k.

Unless your clients income is over £36k this year it won't make any difference to their tax credit entitlement due to the new £25k disregard on increases in income during the current tax year

I believe that workers from E.U accession countries are among those who can benefit most from the post 2006 rules.

Hi there Chris,

I think you are right about the income disregard possibilities for workers recently entering the UK. Trouble is, many A8 (and probably A2) workers seem to be ripped off with jobs 'off the cards' paying around £3.00 per hour etc. I wonder if the Revenue would be willing to consider a TC ward based on illegal employment that pays way below the minimum wage? Unfortunately, even if the answer was yes, I doubt if the workers concerned would want the hassle/risk to their employment.

What do you think?

Steve

Hi Steve

I'd have to bow to your superior experience but isn't that part of what the workers registration scheme was supposed to prevent? I do seem to meet quite a few East Europeans working at our local exhibition centre and most of our local hotels and I'm fairly sure they will have legal employment conditions.

Anyway, I am trying to promote Working Tax Credit as a potential into-work incentive (for people who consider themselves to be starting well paid jobs), however, I think there is a general problem with the help-line advisers telling people it isn't worth claiming if you earn more than a certain amount.

Another point to consider is that, even if you do look at this years salary, a client who starts work now for a job which pays £27k will earn less than £25k during the current tax year as there are less than 11 months of it left.

Client came to see me over another issue. Did the usual benefit check. Son recently came to live with him and claimed CTC and CB (not working, so WTC not an issue). CTC decision made first - not entitled as not working 16+ hours per week. (Give me strenth!). CB subsequently awarded.

Advised him to appeal and make new claim. He phoned up, asked for claim form to be sent out. Was told that because he has just been turned down then he would not qualify and they wouldn't issue claim form. After a 5 minute game of verbal tennis they reluctantly agreed to send him one.

I just wish I had something constructive to suggest but I can't. It's not even as if advisers can get hold of a supply of claim packs so they don't need the help-line.

The tax credit regulations do say there is supposed to be discretion about accepting written claims that are not on the appropriate claim form, but I wouldn't want to suggest that any client of mine takes a chance on this.

It does make you wonder what's going on with their staff selection and training, even if they read their own leaflets, posters, adverts or web-site they'd no that working 16 hours plus is no bar to claiming CTC.

I can only assume that either they are also short of claim packs, or that this is some kind of perverse policy to cut down on overpayments, by refusing to issue the claim packs.

There is the prospect of hope........HMRC have just agreed after LITRG/CPAG/OPF/CA insistence to have a Migrants Working Group to look at TC issues. Up to now it was said that there are no significant problems.

So salvation is up to you.........what are your daily problems?

Please send them to me via our website www.litrg.org.uk/contact

Many thanks

John