I WONDER how many people have been scratching their heads, when it comes to making sense of the new Tax Credits system? I was.

I know a little more about the methods used for working out the awards now, and thought readers might be interested to learn what I've found.

I have been told by the Tax Office that my claim for tax credit was unsuccessful because my partner and I (combined) earn too much. When I read the information provided, I found that the assessment for our award was made before any provision was made for tax and national insurance.

Assuming a mistake had been made, I telephoned the number provided only to be told that this was, in fact, the case.

Basically, the tax office looks at what you would be earning if you weren't paying any tax or national insurance, then base your claim for tax credit on that higher figure and tell you that you don't qualify for any help. Then straight away, they tax you on your earnings and leave you with a mere shadow of your gross wage

Now I am not a poor man, neither am I rich. I struggle to pay the bills like the next man - but I thought that tax credits were introduced to help people trying to help themselves. Now I find I'm paying out all the money I'm earning towards bills and the cost of living and receiving no help from the Government.

I wonder how many other readers have been told they 'earn too much' because their gross earnings are too high. My answer to that one is that, If I was earning what they say, I wouldn't have applied for a tax credit in the first place.

Sean Kelly, Lancaster (full address supplied)