Claiming tax credits

[MrsP2C]

I've been CMing for nearly a year now & think we might be entitled to claim some sort of tax credits. However when I tried to do the calculations online I got totally confused as last year we earned more than we will this year, both mine & DH (also self-employed) income varies month-on-month AND the section where you deduct 1/3 of your income as a childminder made absolutely no sense whatsoever!!!

Can you claim tax credits if (a) you earned more last year than will do this year & (b) your income fluctuates & can anyone explain the cm income reduction bit? We could really do with the extra money but I'm terrified of being overpaid & having to pay it back at a later date. Would a visit to CAB/Jobcentre help?

[bunyip]

IME the whole TC thing is so complicated that you might as well apply every year then let HMRC do their weird and wonderful version of maths and see what you (don't) get.

Mrs B and I worked out our projected hours and earnings and figured we should get a TC award for the current year.

HMRC came back with "no award". We queried this and were told that they add a few £1000's to my projected earnings, just in case I underestimated, cos they've had problems with overpaying households who then struggle to pay it back. They said they'd recalculate next year, once my actual income for this year is known.

In practical terms this means they're happy for us to be poor/in debt this year, and they can catch up on paying us next year - by which time I might well:-
a) not need the money cos I might have lots of clients and am loaded (yeah, right.....)
b) get so far into debt that what they give me mightn't cover the accumulated compound interest.
c) have given up altogether and decided to sell off my internal organs for transplant to keep Mrs Bunyip in the manner to which she's accustomed. :D

Hey-ho. Roll on the Revolution. :thumbsup:

[Zoomie]

I have done an estimation of my income for the past four years that I have been a SE childminder. I have always tended to over estimate my income, and have never been more than £1000 out (this is generally because DH's bonus has been good).

However, I am currently at appeal stage with tax credits because when I submitted our actual income for 2012-13, the figure they scanned from my form was exactly £10000 more than we earned (£3x xxx, instead of £2x xxx). They initially said they couldn't correct the income amount because they do not allow that after 31/7/13 but I've now sent in DHs payslip where hopefully they will see sense. If not my MP will be getting a visit from me. The unfortunate problem that this has caused is TC say they overpaid us by £1000, so we are having to pay that back, AND there isn't any tax credit payments being received this tax year :angry:)

So my advise, overestimate your income and when you submit your return, make sure you do it early.

[MrsP2C]

Oh not good but much as I thought. I'm just waiting for DH to finish his tax return then I guess we'll just submit our claim & hope for the best. Thanks for the tip about overestimating I will definitely do that.

[Chatterbox Childcare]

Always put a claim in at the beginning of the year, even if it is a small one. If a claim is made and they owe you more once your end of year figures are done you can get it but if you don't start a claim and find you could have claimed they will only back date it to the date you claim

Hope that isn't too muddled