IVA decision wednesday 13th June

[Struzzo39]

congrats on the iva hope it goes smoothly for you x

[nepensioner]

Hi Mitch
Can I suggest that you check with the tax credit office and ask exactly what this payment is for. They never pay out in advance, and I suspect this may be an underpayment from the last tax year

[mitch2311]

I checked with them this morning and they said some was an under payment but said my payments were going to be £141 a week til April 2013 but now my payments are going to be £112 a week until april 2013. We were originally getting £129 when i gave them my income of £20,000. I was made redundent so my income last year was only £16,200 hence why the payments were going to go up but they have infact going down £29 a week because of the payment we received today. So we are losing £29 a week tax credits and the IP wants 50% of the payment received so we are worse off really by time weve paid them that. Id rather have got the extra each week as on my income/expenditure form on the IVA it shows us getting £129 a week

[nepensioner]

my understanding then is that from April 2012 to April 2013 you should receive £141 per week. How much were they paying you from April til now?

[Shining]

Great news on both counts.

[mitch2311]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lesley_

Great news on both counts.

We were receiving £112 a week we received a letter this was increasing to £141 but they have now said it has been paid upfront

I dont know what to do, in one sense its good i get to keep £1400 but in another its not good i lose £29 a week which was included in my proposal

[Shining]

mmm I see now what you mean...have you explained all this to your IP about the reduction in tax credits so thereore a reduction in income.

Maybe they can revise your I&E. x

[mitch2311]

I told them today and thney just basically said if i got £2800 id have to pay back £1400, i explained to them this meant id get less each week but they said nothing. Way i see it is £29 x 40 weeks = £1160 but i have to pay back £1400 and im also getting less money each week as to what i get now. Ends up im alot out of pocket if that makes sense.Id rather the tax credits get paid weekly as apposed to one lump sum

[nepensioner]

If your tax credits last year were based on £20k and you earned less when you completed your annual renewal this would have produced the underpayment. Going forward to this tax year, they would have asked you for your estimated household income and if you gave them £20k that would mean your entitlement for this year would have reduced. I think the £141 figure was what you would have got had your income been £16k. As I said earlier, tax credits are never paid in advance

[mitch2311]

My income from 2010-2011 was £16200 2009-2010 was £20,450

[Kelly O]

Congratulations on your IVA

I agree with nepensioner. It sounds like the payment you have received is due to an underpayment during 2011/2012 tax year as your actual income was less than the estimated figure used to calculate the award.

If you expect 2012/2013 income to be more than 2011/2012 your tax credits will be reduced in the current year.

I hope this helps