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Tax Credits Office scaring claimants!

TCO sending letters out which wrongly accuse claimants of not declaring other income

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A worried client has sent me a letter she has received from TCO which implies that she had wrongly completed her Tax Credit form for 2016/17 because she had declared dividends on her Tax Return 2016/17. Her husband and she received a total of £300 in dividends so there was, correctly, a £nil entry for other income on the TCO form. I suspect that HMRC have compared their data on other income from TRs with their data from TCO but have not excluded the first £300. is this another example of non-joined up thinking by HMRC? Are the TCO fit for purpose?

The second page of the letter goes onto say that one should add the tax credit to any dividends received. Are HMRC out of date with the rules on dividends?

Replies (7)

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By SXGuy
02nd Jul 2018 11:28

Which rule are they out of date with and why do you believe £300 dividends isn't income?

Regardless of the tax free allowance its still part of their income...

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Replying to SXGuy:
Lone Wolf
By Lone_Wolf
02nd Jul 2018 12:07

It's clear from the OP that the rule they believe HMRC to be out of date on, is the availability of the 10% dividend tax credit, which I'm sure you're aware no longer exists.

As for the £300 dividends, nobody is saying that it isn't income, but for tax credits purposes, the first £300 of other income is disregarded.

Your reply gives the impression that you don't actually understand the issue you're replying to, but wrongly believe you do, and wanted to add a sarcy response to belittle the OP. Well done you. Pat yourself on the back.

As to the OPs question of whether the TCO is fit for purpose, the last time I was corresponding with them, it was taking 17 weeks for them to deal with letters. take from that what you will...

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By Briar
03rd Jul 2018 12:14

Maybe SXGuy works for TCO as he displays the same lack of knowledge as they do!

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By SXGuy
03rd Jul 2018 19:34

More and more I'm seing very rude people in this community. I don't know why but it's as though you all have an axe to grind about someone or something. Quite sad really.

If everyone who asked a question got shot down, it wouldn't make much of a community would it.

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Replying to SXGuy:
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By Briar
04th Jul 2018 23:30

I asked the question. You tried to shoot me down (on grounds which were incorrect). Why shouldn't we be rude to you?

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Replying to Briar:
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By Tax Dragon
05th Jul 2018 06:48

Briar wrote:

Why shouldn't we be rude to you?


If your use of "we" is intended to suggest you speak on behalf of all of us, you're not speaking for me. Have the courage(?) to be rude alone, or don't be rude at all.
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By Briar
06th Jul 2018 09:04

I was using "we" to mean Lone_Wolf and myself because we were the only people on this thread apart from SXGuy (who seemed to be complaining about us). Hence, I didn't mean "we" to include Tax Dragon or any other Aweb members.

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