Child Tax Credit

jessie15

My friend is worried because she was working 16 hours per week and then 7 months ago started working full time and has now realised that she should have informed the Tax Credit Office, she is frightened to tell them now because of being over paid as she is in a lot of debt, any advice welcome!

Fran

She will have to inform them as it will catch up with her anyway at some point. She can get some help from Citizens Advice who can advise her and help negotiate the repayments and they can also help her deal with her debt.

fatblokexl

it may not affect her as much as the thinks, on her award notice it will say how much she can earn it that tax year before she needs to tell us of income changes. providing this limit is not exceeded then there will be no overpayment approx for every £ is is over she will be overpaid by 37p.

example.

award limit is £7720 in the 05-06 tax year, applicant feels due to the new wage the actual earnings will be £10000, this is £2280 more than the allowance so there may be an overpayment of £2280 divided by 100 multiply by 37 equals... £843.

this will usually be recovered by reducing future payments by a set amount until the overpayment is paid off.

the real big problem is that she is telling us 7 months late of a change, due to the way the system interpets the given dates when updated may mean she is overpaid but in otherway. (the system only back dates 3mths and may wipe out her previous employment dets as a result and only show her working from update date -3mths onwards.