Kern wrote:
Regarding tax credits, the early years of the scheme are one of the blunders in the brilliant 'Blunders of our governments' book by King & Crewe. Are they still as complicated to obtain?
Obtaining tax credits is, in itself, relatively easy. Not ending up massively in debt to HMRC is another thing entirely.
You have to notify them of any change in circumstance that may affect your tax credits (fair enough) but to do so generally means sitting on the phone for 45+ minutes. Not only is this expensive, but is incredibly difficult to juggle around actually working and raising children.
If you notify them of a change, but they don't deem it significant enough to affect your tax credits, they don't do anything. BUT they then might turn around at the end of the year and go "oh, actually, you owe us X pounds because you earned 50p too much". This happened to me, and I ended up having to pay back hundreds of pounds (despite being completely anal about keeping things up to date with them).
This gets even more complicated when you're not in a job with fixed hours, e.g. self employed - when not only do your hours vary, but so does your income. At one point (the first time round) I basically over-estimated my income by 10 grand so that they'd pay me less tax credits because it was easier to struggle on barely any income than it was to face the stress of having to pay back at the end of the year (on top of tax bills, national insurance and everything else).
They were also brilliant at sending out multiple letters all saying very slightly different things, which again if you didn't catch (and I consider myself an intelligent woman) you ended up potentially in trouble / having to overpay:
https://twitter.com/jemjabella/status/3 ... 0797377536They regularly make mistakes -
https://twitter.com/jemjabella/status/5 ... 48/photo/1 - but if YOU cock up because of THEIR mistakes, you still have to pay back any over payments etc.
It's a horrific, horrific system and being able to ring up and cancel my tax credits was one of the best days of my life. I'm not really any better off, I still have a massive childcare bill to pay, but it's a whole lot less stressful getting by on less (thanks to Gaz's contributions to the bills) than it is having to juggle that every day.