Working/Child Tax Credit - Why are they paying me so much?

[NadJ]

Are any of you in the weird situation where the combined child/working tax credits paid to you and your spouse is fast approaching the same number as your basic monthly salary?

I've been doing something else with my life for the last 18 months and therefore no income other than a basic salary paid from the company coffers each month. No dividends, bonuses or anything. I fill out the Tax Credits forms as accurately as possible multiple times a year. We're a couple in our mid-thirties, 2 kids, no disability or income claims. £12k is the total annual income on the form, all gained from one source (my basic salary from the company). Should be a nice and simple calculation for them.

However, my wife continues to receive an average of £450 per month (her amount includes the child tax credits too) and me £250 per month (going up each month) as part of our tax credits!!! Is this normal? I called HMRC and pointed this out first a year ago and recently again, nothing is being done about it. I have no idea what to do except to look after the money for when they ask for it all back!

Anyone heard of similar stories? Or have any advice?

Thanks

[BigRed]

Perfectly normal, didn't you know having kids was Plan B ?

[psychocandy]

So your income is just £12K genuinely with no dodgy dealings? :-)

I guess so then. Only thing (and I found this out after leaving permie) is its all based on years income. So if you get it all year and then in March start a contract and pay a huge divi then they will ask for it back if you've gone over the earnings threshold for the year.