UK tax credits

My husband (UK) and I (US) filed for UK child tax credit and working tax credit in April 2008.  So far we haven't heard much back and our claim hasn't been dealt with. When we call, we are told that it is still processing and someone will get back to us in "due course".  On the last call we were told that our file was  being dealt with by a specialist team.  Can anyone share of their experiences of how long it took them to get their tax credits and if that process was a short or long one?
We have two children 3 and a baby.  Our income for the tax year in question  07/08was 16,000GBP.  Also I came to live with my husband in August 2007.

Thanks

We had an incredibly difficult time getting our application processed. We initially applied just after our daughter was born in May 2008 and I had a phone call from HMRC at the end of July 2008 stating that they were forwarding my information to the JobCentre for a National Insurance Number interview (because I didn't have one, duh! I told them that) and then we heard nothing until my husband called them in Late September when they said our application had been sent to storage because we never responded to a letter? He advised them we had never received a letter. The gentleman on the phone advised him that the only issue with our application was that I didn't have a National Insurance Number (DUH!). About a week later I received a letter stating that I didn't have a National Insurance Number *DUHHHHH!* and needed to attend an interview with the Job Centre and to wait for them to contact me with an appointment. A couple of days later I got a call from the JobCentre in Nottingham and they scheduled me for a week later.

I went to the appointment with my husband & daughter in tow and all my documents (passport, birth certificate, proof of address and our marriage certificate) and they said I should get my number in two weeks in a letter and to call HMRC to relay the number to speed up the application. Yep, two weeks later (late October) received a letter with my number on it and called HRMC gave them the number and the guy said that we should receive something 'shortly' since that was all they were missing.

Shortly ended up being 5 weeks and 4 phone calls later and the first week of December we received the back pay due from May 08-November 08 and the end of December we received the ongoing payment.

So in total it took almost 7 months and 7 phone calls later to get it all sorted.

My question to you is do you have a National Insurance Number? Since this is what was delaying our application. But during this whole process I had the feeling like they were just ignoring our application so that we'd forget about it and just go away.

I would definitely complain that in 12 months your application has not been processed is ridiculous! Complaints procedure: http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/how-to-complain.htm

The interesting thing is that nothing ever happened when I called them, I was always told that 'it was waiting to be processed' and nothing else. But when my husband called (UKC) he was given more detail and finally action happened shortly after (2 days after he called we received payment). Have your husband call them and see what's going on.

Don't forget:

1. For UK tax credits you need to report worldwide income - including US bank interest, savings in IRAs/401(k)s etc.

2. UK tax credits received need to be reported as taxable income on a US tax return if received by a US citizen.

2. UK tax credits received need to be reported as taxable income on a US tax return if received by a US citizen.

Does that include a situation where the US citizen is a joint applicant for tax credits, but it is paid into the other spouse's account?  My husband (Irish citizen) and I made a joint claim, but it gets paid into his account.  Also, I receive DLA on behalf of my daughter, is this something that needs to be reported?  I never thought about the tax aspect in the US regarding these.

To the OP, I agree with WebyJ, complain!  12 months is a ridiculous length of time.  There is one wee silver lining; they back date 3 months from the date of application, so you could get a nice windfall once it's all sorted.  Also, perhaps a trip to your MP or a local councillor?

DLA is certainly taxable income in the US - you probably receive this as bare trustee for your daughter so it would get reported on her US tax return.

If the tax credits are a joint claim then logic says 50% of the income belongs to each person claiming although I could also see arguments to use different ratios than a simple 50:50.

Originally they had my husband's NI# mixed up with his mother's so they wouldn't give us any information at all for six months until the National Tax Office was able to reswitch the numbers.  They were sending us letters with my husband and his father listed as a civil partnership and as the parents of my husband's younger siblings. 
I did get a letter saying that I needed a national Insurance number and went for an appointment Jan 13, 2009 to get it.  I got the letter with my NI # a couple weeks later and called the Tax Credit Office to let them know.  Since then we have called several times and are still being told that someone will call us "in due course".  Both my husband and I have called and no information at all is being given.  I guess all we can do is complain.  I thought they were just making us wait as well so that we would go away.

I didn't know this money had to be claimed on a US tax return.  My husband is the sole earner for our family and would have filed alone except that we had to file together for tax credits since we are married.  The money would go to him and not me.

The 16th amendment to the US constitution is to blame here because it introduced the current Federal income tax. 

US persons report worldwide income each year on a US return.  I don't know why you think UK income would not be reportable?

I don't know why you think UK income would not be reportable?

I can't speak for the OP, but I had naively assumed that since it went to my husband, and he wasn't a US citizen, I didn't have to report it.  It's been discussed a lot on the Visa board that when one person doesn't have have recourse to Public Funds, but the other does, it's okay to make a joint claim so long as the UK citizen isn't getting more benefit due to the other person being in the household.  I guess I wrongly thought that since I wasn't taken into account when the tax credits were decided, it didn't count as my income so to speak.

UPDATE:   We finally got our tax credits after sending a letter to the complaint department.  We got a large back payment and have payments set up for the current year.  The tax credit office also sent us a check for £60 to cover our worry and expenses in calling their office.  They said nothing other than they had handled our account improperly and they would pay.  It took about four weeks after our complaint letter was received before we were paid.

Ah very cool...it does pay to complain...just watch...now they'll send your 09/10 renewal pack!...13 months is rediculous and I thought that we waited a long time...at least it's sorted now.