Yipee!lump sum payment for underpayment of tax credits!!!

shelovestobuystuff

Just wanted to ask if anyone else has had a lump sum from tax credits.Didnt know they did this and very pleased to have looked at my bank account online just a few minutes ago and found a big unexpected payment.Apparantly they underpaid last year so a big one off payment to make up for that. This morning I have,due to that payment, cleared 2 overdrafts,1 credit card,paid overdue gas and elec bills and had a little dance.:j

fay66

they are only able to back date a month as far as i know unless its unawarded benefits

[Deleted User]

Please tell me you made sure it wasnt an error before you spent it!?

Have you checked your finalised award for 2007/08?

This wont be anything to do with backdating if it is an underpayment, it will most likely be due to declaring a lower income than what was previously estimated to TCO.

cazziebo

Yes I did! Followed by a letter a month later saying I'd been overpaid.. This was a few years ago when they were in a real mess. I think they're more organised now?

If you call to check it's right - (which I did) - make sure you get the name of the person you spoke to - otherwise they will deny it.

But I do hope it is right - what an amazing boost for your finances!

SuziQ

I hope it's correct too! Back in 2005 I was given a large lump sum. I checked the paperwork which didn't show anything untoward,phoned up the helpline twice and they explained it was for and underpayment on their part.
Several months later they said I had been overpayed the exact same amount and wanted it back. I appealed,and recieved a letter saying they wouldn't retrieve the amount from my current award,however they did-leaving me in some financial difficulty. After quite a battle and demanding they check the phone calls I had made,they finally agreed that it was their fault,there was no way I could have known it was wrong under the circumstances and they would write it off. As I had by then repaid the whole amount,they paid me the lumps sum again. The following year I had yet another (the third then-I have recently recieved my fourth!)demand for repayment as they said they hadn't recieved my declration back. In amongst that sum is the lump sum payment they are again asking for!
This dispute is ongoing and I am getting to the point of despair,as the most recent demand for repayment is despite the fact my AD was completed over the phone on 18th July. I am hoping I have managed to sort the latest one (will have to see what their next letter says!) but expect I will be forced to repay the one from 2006-although how they can ask for that £1,200 back again when I have it in writing that they had made a mistake and had written the debt off defeats me.

alison999

i am owed about £700 of underpayment, but have to wait til january for it, i think cos i always tick that estimated income box.

shelovestobuystuff

I hope its correct too.It is based on my actual income figures as the estimated income figures we provided for 07-08 was higher than our actual income for the period.I overestimate on purpose so that I avoid the situation of having to repay any overpayments.I have spent it though,used it to clear overdrafts and a credit card,thats it all used up.I am debt free now,for the first time since I was 18 years old,unless they ask for it back.

mitchaa

shelovestobuystuff wrote: »

I hope its correct too.It is based on my actual income figures as the estimated income figures we provided for 07-08 was higher than our actual income for the period.I overestimate on purpose so that I avoid the situation of having to repay any overpayments.I have spent it though,used it to clear overdrafts and a credit card,thats it all used up.I am debt free now,for the first time since I was 18 years old,unless they ask for it back.

Was it a big payment?

As an example, surely the difference between say £15k estimated earnings and £13k actual earnings isn't that much in terms of tax credit awards?

I hope to god for your sake, it's not a mistake and then you have to repay it all.

clairewp

Hi i am in similar situation, me and husband have been made redundant, phoned family tax to report this and received £2.500 into bank.
I rang them back and was told this was correct, but i think when my hubbie gets new job they will want this back, so i have put it into savings account, and am awaiting the dreaded request.

cazziebo

shelovestobuystuff wrote: »

.I am debt free now,for the first time since I was 18 years old.

:T :T :T :T Well done! :j :j :j

shelovestobuystuff

mitchaa wrote: »

Was it a big payment?

As an example, surely the difference between say £15k estimated earnings and £13k actual earnings isn't that much in terms of tax credit awards?

I hope to god for your sake, it's not a mistake and then you have to repay it all.

I earned about 6k less in my first year as self-employed than I had estimated so we recieved a lump sum payment of just under 2k for the whole of last year.I had to wait until I had my actual figures in April to get the tax credits sorted properly and thats it only just been assessed finally.Not a massive amount of money really but it has cleared all my debt,except the mortgage of course, so I am happy.