Tadley Citizens Advice Bureau has received an award to help local residents with tax credit issues.  Until May 2007 the Bureau will be able to offer detailed advice on tax credit issues such as the one below, and the specialist workers will be training our regular advisers to deal with the more complex enquiries.  If you have any problems or want to claim tax credits, you can call the specialist line 0118 9817582 and leave a message – someone will get back to you.

January 2007 Question and Answers

Q. I've had all sorts of problems with tax credit payments and have found myself in debt as a result.  Is it true that there are changes coming in that might stop this happening in future?

A.Yes, the Government has admitted that changes are needed to try and prevent tax credit overpayments resulting in hardship and debt for thousands of families when the Revenue tries to claw the money back.

Some of these have already come in to force.  From April 2006 the amount by which your income can increase before affecting your entitlement to tax credits went up tenfold – from £2,500 to £25,000.

From November 2006 there was a limit to the cuts that can be made to tax credit payments in order to recover overpayments.

But also from November 2006, you are responsible for reporting more changes in circumstances to HMRC, and from April 2007 the time you have to do this will be cut from the current three months to only one month.

For more detailed information on tax credits and how to sort out problems caused by over-payments, contact the Tadley Citizens Advice Bureau – open 10.00 am – 1.00 pm for appts Monday to Fridays, drop in Mon, Tues, Fri,  and  tel. enquiry line 0118 9817660 :or go to the Citizens Advice website : www.adviceguide.org.uk.