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  • FIRST POST
    • kazzyb123
    • By kazzyb123 11th Feb 18, 7:09 PM
    • 57Posts
    • 6Thanks
    kazzyb123
    Self employed overpayment
    • #1
    • 11th Feb 18, 7:09 PM
    Self employed overpayment 11th Feb 18 at 7:09 PM
    Hi, my partner is self employed and his income has increased a lot this year. I have called tax credits and because of the overpayment they have stopped the payment (which is fair enough).

    Depending on the final amount of income for this year we will owe between 1500 (if it!!!8217;s 20k) and 2700 (if it!!!8217;s 24k upwards)

    The income this year was higher because of certain contracts and is likely to drop back down again next year to the previous level (approx 12k).

    My question is when I renew and estimate next years income as 12k the award will be 2700 ish and we will owe 2700 ish (I think). Would that mean we just get no tax credits for a year or would we be expected to pay the 2700 back in one go?

    P.s. if the award is reduced to zero does that mean having to reapply or does it just continue into the following year?

    Hope that makes sense!

    Thanks.
    Last edited by kazzyb123; 11-02-2018 at 7:15 PM.
Page 1
    • Darksparkle
    • By Darksparkle 11th Feb 18, 7:17 PM
    • 4,893 Posts
    • 3,171 Thanks
    Darksparkle
    • #2
    • 11th Feb 18, 7:17 PM
    • #2
    • 11th Feb 18, 7:17 PM
    They'll deduct the overpayment from any future award. https://www.gov.uk/tax-credits-overpayments/repay-your-tax-credits
    • kazzyb123
    • By kazzyb123 12th Feb 18, 2:43 PM
    • 57 Posts
    • 6 Thanks
    kazzyb123
    • #3
    • 12th Feb 18, 2:43 PM
    • #3
    • 12th Feb 18, 2:43 PM
    Thanks for the reply, Iím still confused. Itís difficult working out the percentage we will need to pay back when I have no way of knowing what next years income will be.

    I think that if i estimate the income as staying the same (total 26000) or higher we need to repay 100% of it and we will have no award for next year to recover it from. Does this mean we will get a bill for the full amount to pay in one go or will they wait until the end of next year to work it all out?

    thanks
    • kazzyb123
    • By kazzyb123 13th Feb 18, 11:50 PM
    • 57 Posts
    • 6 Thanks
    kazzyb123
    • #4
    • 13th Feb 18, 11:50 PM
    • #4
    • 13th Feb 18, 11:50 PM
    Any idea anyone please??
    • huckster
    • By huckster 14th Feb 18, 12:18 AM
    • 3,045 Posts
    • 1,280 Thanks
    huckster
    • #5
    • 14th Feb 18, 12:18 AM
    • #5
    • 14th Feb 18, 12:18 AM
    Deductions are usually a small percentage of future payments. I very much doubt the amount will be reclaimed over a year and it will take much longer.

    I suggest you phone whoever is dealing with this to discuss the process.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
    • Icequeen99
    • By Icequeen99 14th Feb 18, 11:55 AM
    • 3,506 Posts
    • 2,382 Thanks
    Icequeen99
    • #6
    • 14th Feb 18, 11:55 AM
    • #6
    • 14th Feb 18, 11:55 AM
    Thanks for the reply, Iím still confused. Itís difficult working out the percentage we will need to pay back when I have no way of knowing what next years income will be.

    I think that if i estimate the income as staying the same (total 26000) or higher we need to repay 100% of it and we will have no award for next year to recover it from. Does this mean we will get a bill for the full amount to pay in one go or will they wait until the end of next year to work it all out?

    thanks
    Originally posted by kazzyb123
    They can stop your payments in year altogether if they think you have already been overpaid this year.

    Otherwise, recovery will be 50% of your payments if your income is over £20k and if you estimate your income as below 20k then it will be 25%

    IQ
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