£2300 tax credit received - should I be wary?

AFCChris

Hi

I got an unexpected surprise today - a £2300 credit to my bank account. It seems to be showing the same as when I normally get my Child Tax Credit (or whatever it's called these days). The normally child tax credit one for £11 is there as well.

Not sure whether to be wary of this in case it's a mistake. Maybe this is some kind of refund? Anyone else get this? We reviewed our stuff with the Inland Revenue on the deadline (31st July).

Regards

Chris

skylight

Phone them and ask. Its the only way you will know for certain. I assume that when you completed the end of year review, your actual income for last year was a lot less than your estimate??

Its too much money to assume its yours, when it could just as easily be a mess up. Phone them and ask! This is the only thing I find annoying about TC, they pay up before you get the award notices or end of year reviews letters, so you are never quite sure! (Once waited 3 weeks for the award notice after payment!)

MrsTinks

Think of it as a mistake and put in a savings account That way you're making the interest and you still have it if/when they realise they have messed up (which I wouldn't put past them to have messed up several thousands worth... don't just go and spend it until you are 100% sure it's yours!

[Deleted User]

Contact them asap to make sure it isn't a mistake. As said in the first reply, was your 07/08 income less than what you had previously estimated? Make sure you havent ticked an income support, job seekers allowance or pension credit box on the claim form by mistake - this causes the system to disregard all income and may result in a higher award than you should be entitled to.

Dont just leave it as suggested. If or when they notice there is an error you may be subject to a compliance investigation.

polaroid

My word, what is wrong with the child tax system, yesterday I got, £51.45, £75.60 and £91.50 all put into my bank account. How random, I would be thrilled but they are well known for clawing back when you least expect it! I am with MrsTine - put it into a high savings account and forget about it - what ever you do - no matter how skint you are or how tempting it is - DONT spend it!!!

[Deleted User]

There probably isn't anything wrong with it in your case polaroid.

When you complete your annual renewal they will finalise the previous year's award and if they have not paid you correctly they will either pay you anything you are owed or notify you of an overpayment.

The new rates of tax credits are not paid until you renew your award so the majority of people (usually not so much those receiving the minimum £10 p/w) will receive a couple of one off payments to balance your award to date. Whenever a recalculation of your award happens the system will usually issue one off payments to sort out the scheduling of you payments.

AGAIN, IF YOU THINK THERE COULD BE AN ERROR YOU SHOULD NOTIFY TCO IMMEDIATELY. IF IT IS YOUR ERROR YOU MAY BE SUBJECT TO A COMPLIANCE INVESTIGATION. COMPLIANCE SECTION CAN TERMINATE AWARDS AND REQUEST THAT ALL PAYMENTS BE PAID BACK.

trickster

This happenned to us a few years ago. I phoned them to update my details and the divvy lady took down my earnings as zero! instead of 30 k (or whatever it was). We ended up with an award of around £4000. We put it safe in an account until we knew what was happenning. Didn't bother to call them immediately, but on retrospect we should have. Anyway, the following award time came up and it became clear they had overpaid. The award stated that basically they wouldn't ask for it back, we just won't get any more until it has all been recovered. So we spent it on our extension roof which needed replacing. Still got about £1500 outstanding, but hey, thats a great interest free loan

BABYQ333

I would seriously advise you to call and check with them. If they say that you are entitled to it, then find out why and under what circumstances. I got two payments back in 2003 within 2 days of eachother amounting to over £7,000. I queried it and was told that I was entitled to it. I noted the date, time and person's name i spoke to. Well...a month later, I received a letter stated an overpayment for the same amount and that I owed them! In the end I did not have to pay them back after I threatened court action and that they would put me in financial hardship. Never give into them and fight for what you are entitled to or for what you have received by their mistake lol

SuziQ

BABYQ333 wrote: »

I would seriously advise you to call and check with them. If they say that you are entitled to it, then find out why and under what circumstances. I got two payments back in 2003 within 2 days of eachother amounting to over £7,000. I queried it and was told that I was entitled to it. I noted the date, time and person's name i spoke to. Well...a month later, I received a letter stated an overpayment for the same amount and that I owed them! In the end I did not have to pay them back after I threatened court action and that they would put me in financial hardship. Never give into them and fight for what you are entitled to or for what you have received by their mistake lol

I am gobsmacked that you didn't have to repay this money when they had let you know so quickly that it was a mistake.

Nowadays they recover 100% of such moneys.

crispeater

MrsTine wrote: »

Think of it as a mistake and put in a savings account That way you're making the interest and you still have it if/when they realise they have messed up (which I wouldn't put past them to have messed up several thousands worth... don't just go and spend it until you are 100% sure it's yours!

i had a similar experience last year and i put it into my savings account and i left it there for a year before i spent any incase they asked for it back. they didnt so i took the kids to gran canaria for a week all inclusive :T

clairehi

If you receive a overpayment due to a mistake you made - you have to pay it back. However if the overpayment is due to mistakes that both you and TCO have made, you may only have to pay back part of it.
A real life example: A claimant fills out a form incorrectly and receives an overpayment as a result. They phone TCO immediately to report the mistake. TCO do not update their systems, and as a result more overpayments are made, despite further phone calls and letters for the claimant. The claimant (eventually) only has to pay back the first overpayment received before they notified TCO of the error.