Overpaid Tc what happens next

craftingqueen_2

We had a letter today saying we were overpaid in tax credits . We are willing to pay it back but can't pay it all in one go .
Will they take us to court or will they let us pay instalments .Really scared do not want to go court.

CQ

brians_daughter

if you still get tc they will take it out of this year/following years entitlements ie if you usually get say(these figures are plucked out of thin air lol) £100 pcm you may only get £60 til the overpayment is cleared.

If you do no longer get tc they will insist it is paid back within 12 months - if this isnt acceptable to you you can do an income and expendature form and come to some agreement.

But are you sure the over payment is your fault? how has the overpayment arisen? if it is tc fault then they (in theory) should not try and collect it

i would call and see where they say the op has arisen from and take it from there

craftingqueen_2

Yep was our mistake hubby thought you had to take pension off his year figure . But this year we found out that was wrong thats only private pension . So hands up we made the mistake . We will pay it back but can't do it all at once.

System

If your claim is still live they will recover the overpayment by reducing the amount you are to be paid. This is the best way because they don't charge interest. Also if the amount they reduce your payments by is too much and pushes you into hardship you can ask them to reconsider the figure and recover it over a longer period.

If your claim has ended you can ask for time to pay. They may ask you to complete an income an expenditure form and will negotiate a longer payment term with you.

craftingqueen_2

Hi pam our claim is still live , hubby is going to give them a call on monday .