Working Tax Credit
Discussion
I am trying to help my gf fill in the claim form for working tax benefit. Now everything seems standard except for one thing. She has to put her income down for last year, up until April '09, which she did. But from April she packed in her job, went travelling for a bit and then went self employed from October.
On the form there is nowhere to explain this, only small section saying she is self employed at the moment and asking for her UTR number, which she hasn't received yet? Will this info be enough for them to get back to her and ask how much her income is at the moment? Or will they go on last years income......sorry for the ramble....
On the form there is nowhere to explain this, only small section saying she is self employed at the moment and asking for her UTR number, which she hasn't received yet? Will this info be enough for them to get back to her and ask how much her income is at the moment? Or will they go on last years income......sorry for the ramble....
Edited by swansea v6 on Monday 25th January 23:28
i dont know..., but neither do they, the whole thing is hopeless. IIRC they want to know income for the past year then ask you to estimate income for the next year, then when the next year comes they check back to see if there has been any over/under payment.
You need a medal if you can fill in the form 100% correct, calculating childcare costs income earned from interest on savings etc. Dont know why they cant just use the tax data.
That didnt help did it...
You need a medal if you can fill in the form 100% correct, calculating childcare costs income earned from interest on savings etc. Dont know why they cant just use the tax data.
That didnt help did it...
Unfortunately, the system tries to give you Tac Credits based on your CURRENT income, not your past income. The tax system works on current income if you are on PAYE, past income if you are self employed or have substantial non PAYE income (such as dividends).
Therefore, the Tax Credit system is out of synch with many people's income circumstances. When this is the case, it expects the claimant to be a crystal ball gazer and the claimant has to try and predict what their income is GOING to be in the year for which the claim relates.
This is the always the case with those who are self employed as it is not absolutely clear what your net taxable income for any given tax year actually was until after the tax year has ended - often well after the end of the tax year. In those circumstances all your girl friend can do is make a best gueestimate of what she THINKS her income will be and then notify the Tax Credit people as soon as she knows a more accurate figure.
The Tax Credit system is fundamentally flawed - absolutely understandable as it was the brainchild of one Gordon Brown.
Therefore, the Tax Credit system is out of synch with many people's income circumstances. When this is the case, it expects the claimant to be a crystal ball gazer and the claimant has to try and predict what their income is GOING to be in the year for which the claim relates.
This is the always the case with those who are self employed as it is not absolutely clear what your net taxable income for any given tax year actually was until after the tax year has ended - often well after the end of the tax year. In those circumstances all your girl friend can do is make a best gueestimate of what she THINKS her income will be and then notify the Tax Credit people as soon as she knows a more accurate figure.
The Tax Credit system is fundamentally flawed - absolutely understandable as it was the brainchild of one Gordon Brown.
Edited by Eric Mc on Tuesday 26th January 07:15
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