Tax Credit overpayments

mattmurphy

I have seen many peoples stories of being over paid in tax credits and then being asked to pay it back.The one thing I am not clear about is how they expect you to pay it back,do they simply reduce your tax credit payments until it is clear eg if you get £40 in tax credits do they simply reduce it to £20 until you have paid it back,or do they expect you to pay it off in one lump sum.Thanks for your time.

In_for_a_Bargain

Yes that is exactly what they do, even when all the information you give them is correct and on time. Then all of a sudden you have been paid too much and they decide very generously to take it back!!!Sure;y they would be better to check information at the time and make better decisions. Sorry to rant, but it is really annoying!!!

larmy16

I rang them recently to tell them I had upped my hours. I was terrified it would put a spanner in the works and they would stop my payments or something computer says no type situation. However I seem to have had a small increase in my payments!!!!!!!!!

Needless to say I am putting the extra money I am earning into a separate account as I cannot see them letting me earn that and be entitled to the money they are paying me. My CTC totally ends in March anyway, so I will be in very new situation as a 50 year old working 30 hours. I may no longer even be entitled. In some ways I see that as freedom, but I guess even if you are entitled to a couple of quid, it may help towards costs of glasses etc, so I will still try for it.

I am dreading getting that overpayment letter, but I have kept them informed of my changes so..........................

DazzerG

larmy16 wrote:

I rang them recently to tell them I had upped my hours. I was terrified it would put a spanner in the works and they would stop my payments or something computer says no type situation. However I seem to have had a small increase in my payments!!!!!!!!!

Needless to say I am putting the extra money I am earning into a separate account as I cannot see them letting me earn that and be entitled to the money they are paying me. My CTC totally ends in March anyway, so I will be in very new situation as a 50 year old working 30 hours. I may no longer even be entitled. In some ways I see that as freedom, but I guess even if you are entitled to a couple of quid, it may help towards costs of glasses etc, so I will still try for it.

I am dreading getting that overpayment letter, but I have kept them informed of my changes so..........................

If you have increased your hours to 30+ from say 16 then you would've received the additional 30hr+ element of wtc.

DazzerG

mattmurphy wrote:

I have seen many peoples stories of being over paid in tax credits and then being asked to pay it back.The one thing I am not clear about is how they expect you to pay it back,do they simply reduce your tax credit payments until it is clear eg if you get £40 in tax credits do they simply reduce it to £20 until you have paid it back,or do they expect you to pay it off in one lump sum.Thanks for your time.

This depends on whether the claim that has the O/P on is still running.
If it is then your entitlement for the following years will be reduced to payback the amount. This could in theory take upto 10years.

If the claim is no longer running then the O/P is requested to be paid back within 30 days, but you are able to (and are always given) the option of repaying over 12months.