Help massive tax credit overpayment

jjackman

oh and can someone point me in the direction of this calculation thingy as all i can see is a chart and it doesnt take in to account child care.

thanks in advance

nikki2804

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/Paymentsandentitlement/entitlement/DG_181270

It should take into account childcare costs. If not then phone 0845 300 3900 and get them to take you through there own calculation. They should be able to explain everything.

You can also complain to there HO, explain the hardship thing.

I notice that you have limited food until Thursday, nip over to the OS board, they are lovely there and will probably be able to advise you of meals to make out of your ingredients. Its truly amazing what you can make out of so little!

jjackman

thank you for that, i am greatful

Oldernotwiser

jjackman wrote: »

I thought this was a help and support board thats why i joint, but it definatly doesnt seem this way.

Sorry but I thought you'd had a lot of help and support as well as some general discussion on the issues involved.

Sucker_for_sweeties

nikki2804 wrote: »

Erm a P35 is the total of income, tax and NI paid by an employer as a whole, why would this be taken as information for a tax credits claim? It is not the employers responsibilty to do this. If anything this would be a P14 which shows the exact same information as a P60. Plus its the applicants that inform the TCO of income. (unless they give DWP etc permission to do this)

I do agree with the others though, you knew that you were overpaid, you should have kept the money. In all fairness it is hard to do in this current climate but you could have done an eligibility calculation on the TC website or phone for one. They would have given you an idea of what you were due every 4 weeks, you could have used this and put the rest away in a high interest account.

You have admitted that you knew you were overpaid so it is likely that TCO will ask for the money back (you can dispute - COP26 I beleive) but there say so is final. You will then be able to set up a payment plan.

Sorry P14 is what I should have said .
At some point HMRC must also enter the employers declaration of income into the system as well as the claimants declaration, they told me the error occurred during their automatic scanning of employers declarations, and I translated that in my simple wee head as = year end return = P35 = employers declaration.

And I do agree with everyone that says you shouldn't spend what you know is an overpayment. The best thing to do immediately is push and push to get the error corrected, and leave the overpayment somehwhere it can earn you interest (is there still anywhere that does that?). If you can't afford the OP to be reclaimed from your current award you need to know you can give it back when the system does catch up with it all.
But I can see how this could prove to be well nigh impossible depending on your circumstances.
That's what make this system a bit of a nightmare for both HMRC and us.

Sucker_for_sweeties

jjackman wrote: »

i am not having a go at anyone,

I got a letter in december to say they have decided i was over paid in 2007-2008, i havent been told why or how as yet all i have been told is they have over paid me by £12,000.

I called and gave them all the information they asked for and as yet havent heard a single thing!

The very Tuesday after i got £170 paid in to my account, this has happened everyweek since, and i havent spent this, But it has caused such hardship its unreal. It caused poverty, i also have been in hospital since due illness brought on through stress. which isnt good, (but knowing i dont have a spare penny) i have discharged myslef to go to work!!

I thank you for directing me to the tax credit casulties website and it wasnt you comments i was refering to.

I thought this was a help and support board thats why i joint, but it definatly doesnt seem this way.

If anyone wants to know anything just ask, i am doing my best all i was doing was saying comments can really hurt people if you dont know what situation they are in, in the best will in the world we would all like to have spare money but for some its not the case at all.

I was not insulting or being "off" with anyone at all, and just wanted to clear that up

Jackman, I didn't take it personally so no hard feelings.;)

Like you the issue has affected me in the past, and although it wasn't a nightmare for me, I can fully understand that I was indeed a rare exception.

Luckily I've aways been super wary of all things tax (comes from my job) and I am a bit terrified of the taxman, and his power.....much more than police etc.

That's why the system is a bit of a nightmare for joe and joanna public. It's run by a department that has for centuries collected tax of all flavours. NOT handed out benefit money. Which no matter how it's dressed up is what Tax Credits are.

Call them in the first instance and try and sort out a more liveable collection rate, despite the fact the OP won't dissappear without repaying it, they will be as flexible as possible if the collection rate is causing you hardship.

kelloggs36

mummysbabes wrote: »

MY HUSBAND AND I APPLID THE SAME AS USUAL FOR TAX CREDITS AND WE TOLD THEM EXACTLY HOW MUCH WE BOTH EARNED AND ON EACH OCCASSION WHEN THEY HAVE SENT OUT THE ENTITLEMENT LETTER THEY HAVE SHOWN MY HUSBANDS HOURS AT 50 HOURS BUT HE IS NOT EARNING ANYTHING.
EACH TIME I HAVE PHONED THEM AND TOLD THEM THAT THIS IS INCORRECT AND I HAVE EVEN SENT THEM WAGE SLIPS TO SHOW WHAT HE EARNS AND ALSO HOW MUCH.
RECENTLY WE GOT A LETTER TO SAY WE HAD BEEN OVER PAID AND EACH TIME IT HAS BEEN DIFFERENT IT STARTED OFF AT 6K AND IS NOW OVER 10K.

DOES ANYONE KNOW CAN THEY DO THIS, ITS THERE ERROR AND I HAVE TOLD THEM EACH TIME THEY ARE PAYING ME THE WRONG AMOUNTS BUT YET THEY KEEP PAYING ME AND NOW ARE DEMANDING THE MONEY, REALLY NOT WHAT I NEED RIGHT ON TOP OF XMAS.

DOES ANYONE HAVE A SIMILAR ISSUE AND HAVE BEEN ABLE TO RESOLVE THIS, WE HAVE ALREADY LOST OUR HOUSE AND NOW WE ARE WORRIED WE WILL LOSE OUR RENTED HOME TO.

PLEASE PLEASE HELP VERY SCARED:eek:

Read the link from this article - it looks like they should be writing off this overpayment - provided you notified them of it within 1 month. http://www.icaew.com/index.cfm/route/154203/icaew_ga/en/Technical_and_Business_Topics/Faculties/News/New_guidance_on_tax_credit_overpayments

leveller2911

The WFTC system is not fit for purpose.Ive posted before about an over-payment we have dating back to 2005.Im self employed and TC are calculated on my previous years earnings, God help me If I earned a bit more this year.
As for TCO saying we can give them "rough figures" is to be honest pathetic, what other "benefit" is awarded on what is in fact a guesstimate?...

We like the OP are being "awarded" £40 per month paid into the bank, we asked them NOT to pay this money but to keep it to pay towards the OP (which is constantly changing) but thats too easy and they can't do that.They will carry on paying it and we need to set up a DD to pay it back..........Yet another NU-LABOUR !!!!-up..(couldn't organise an Orgy in !!!!! house)

PATHETIC !!!! .........nuff said:rolleyes:

WFTC just makes working families rely on the State even more.....To the OP good luck

nikki2804

^^^

All I can say is that you should grossly over estimate your income. I do realise that lots of people rely on these benefits but if they can do with a little less and then have no overpayment then thats got to be a good thing.

For instance between myself and my OH we had 32k of an income last year (and so many debt repayments!!) because I am now onto half pay its probably more like 22k but I am keeping the figure high.

HTH