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InTheBrownStuff
Rank; Hector Tax Inspector
3 Posts |
 Posted - 09/04/2008 : 09:47:09
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Hi Everyone,
I have been posting on MSE for a while now and have been advised to post my problem here as there are people here who specialise in WFTC.
Basically I had a hugelly successfull business up until Janiuary which is about to be wound up by the VAT man for VAT debts of £43,000.
This wasn't squandered or peed up the wall, i lost my main contract and this went to paying the bills/wages and keeping staff on the books.
I have now decided that to avoid going bankrupt or in an IVA I will work my backside off as a taxi driver, bit of a change from running a national business with 41 staff but tbh it pays the bills so I dont care what people may think of me.
My problem is we have had a letter from the tax credits demanding immediate repayment from an overpayment of around £700 (will dig out the letter). The last time we got tax credits was about 3 years ago We have moved a lot in the meantime but always got royal mail redirections so would assume any letters would have been forwarded.
My problem is I am the only earner in my household and have gone from huge earnings to making ends meet, I would like to put in a claim for WFTC but can someone help me with the following points.
1)Can I claim if they insist and are right that i was overpaid and still owe them money
2)I think that WFTC is based on last years earnings, my company turnover was in the hundreds of thousands, can I get them to base it on projected earnings for this year in my new career???
3) If the answer to 2 is yes, how do I go about providing a figure when i will be working as a self employed taxi driver (not started yet btw) and havent got any actual earnings to base an average on.
Really sorry if this is long winded but at my wits end. Thanks in advance for any help.
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splashin
Rank; Undercover HMRC Spy
Belize
446 Posts |
Posted - 09/04/2008 : 15:12:21
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 Welcome BrownStuff
What a roller coaster time you have been having. I always say, as one door closes another one opens. You will find on this forum, we are a very non judgemental bunch, so please don't think you need to explain about your business.
Okay, quite easy questions to answer these, but I can see why you ask them. Its questions like this people need answers for. People would never call the Tax Credit Helpline with such a question.
Okay, you say you have not had any tax credits for over 3 years. Was the reason for these stopping? Was it due to your household income level? Or perhaps your children are above the school leaving age?
So what action should you take here. Firstly complete a dispute form and send to HMRC (recorded delivery). This will bide you a little time to find your feet again. Depending on what your reason is for the last payments from tax credits stopping, will choose what your next step will be. If payments stopped because income became above the threshold, then you do not have to complete a new claim form. (she says ha) If they stopped because eligibility ceased the you need to complete a new application to claim tax credits again.
1. Yes even if you do owe money from a past overpayment you can still claim Tax Credits for your present circumstances. You may find the overpayment can be recovered from the new claim, but this depends on the reason for the last TC's stopped.
2. If you do need to complete a fresh claim form to make a claim then, yes your income will be initially used from the previous tax year. You must carefully study the notes sent out with any new claim pack, before doing this. There are certain rules regarding Self Employed Income, it also tells you what should you do if you have a loss and how to calculate this into your level of income. This link may help
http://www.hmrc.gov.uk/manuals/ntcmanual/eligibility_selfemp/ntc0360090.htm
3. Okay, A new tax year has just commenced, so at present you have earned no income for the 2008-09 tax year. You know what you need to bring home weekly/monthly as income for your family to live. So work out outgoings and I always recommend another 2k then to be added to this figure to be on the safe side. This would be my way to estimate end of year income. During the tax year keep any increase or decrease updated with HMRC.
   
Splashin |
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InTheBrownStuff
Rank; Hector Tax Inspector
3 Posts |
Posted - 09/04/2008 : 15:31:48
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Hi Splashin and thanks for the quic resnse.
If i remember correctly (it was a while ago) they asked me to complete renewal forms which i didn't as I assumed hat my new income was too much, AND, I was at that tme self employed and did not keep great accounts (hanging my head in shame)
I know when i started my business (Oct 2006) I asked my accountant about tax credits and she laughed (my business turnover was £800k) now the business is being wound up and i have NO income, until my criminal records check comes back and i gt my taxi license (prob 4 weeks).
I have a rental property in joint names wih my OH and i am still listed as a director on my second limited company hich owns a property but runs at a minimal loss. Will this affect me. obviously I will e struck off as a director in this company ayway dueto my VAT debts when the compnay is liquidated but y OH is the other director.
Sorry if this is complicated, I will look for the demand letter from them now to get the exact amount and then ring them for a dispute form.
Thanks again |
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Alan the Geordie
Da Purple one
2787 Posts |
Posted - 09/04/2008 : 18:59:08
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>>I always say, as one door closes another one opens.<<
I always say, as one door closes a window slams on your fingers!
Apathy rules OK - so why do I bother? |
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Alan the Geordie
Da Purple one
2787 Posts |
Posted - 09/04/2008 : 19:03:33
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>>Sorry if this is complicated, I will look for the demand letter from them now to get the exact amount and then ring them for a dispute form.<<
Don't waste your money on a phone call. Download your dispute pack - free - from us here;
http://www.taxcreditoverpayment.pwp.blueyonder.co.uk/downloadpack.htm
Apathy rules OK - so why do I bother? |
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splashin
Rank; Undercover HMRC Spy
Belize
446 Posts |
Posted - 11/04/2008 : 02:30:02
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quote:
Originally posted by InTheBrownStuff
Hi Splashin and thanks for the quick resnse.
If i remember correctly (it was a while ago) they asked me to complete renewal forms which i didn't as I assumed hat my new income was too much, AND, I was at that tme self employed and did not keep great accounts (hanging my head in shame)
I know when i started my business (Oct 2006) I asked my accountant about tax credits and she laughed (my business turnover was £800k) now the business is being wound up and i have NO income, until my criminal records check comes back and i gt my taxi license (prob 4 weeks).
I have a rental property in joint names wih my OH and i am still listed as a director on my second limited company hich owns a property but runs at a minimal loss. Will this affect me. obviously I will e struck off as a director in this company away dueto my VAT debts when the company is liquidated but y OH is the other director.
Sorry if this is complicated, I will look for the demand letter from them now to get the exact amount and then ring them for a dispute form.
Thanks again
Brown
I am sorry but I have little knowledge of the laws regarding Self Assessment Tax Rules, you need advice from that area
Splashin |
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InTheBrownStuff
Rank; Hector Tax Inspector
3 Posts |
Posted - 11/04/2008 : 13:39:31
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Hi Again,
Have searched high and low for the demand letter from them and its vanished. Do I need this as i don't know the exact amount i am disputing. Is there any phone numbers/email adresses where I can get this from if I need it?
Thanks in advance
(p.s signed the petition) |
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Topic |
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Overpaid? huge earnings last year, lost business
