over estimated tax creds

staceydaisy

Last year I over estimated oh earning by 2.5k what will happen please

staceydaisy

any1? know what happens when over estimated income.

skint4

If you are saying that less money was earned than you said when you fill in your tax credits review they will owe you money as they will have underpaid you they should then pay you this as a lump sum.

TaxCreditHelp

Once you renew your tax credits by providing us with your actual income, we will then finalise your award by either issuing you with an overpayment notice or paying you a lump sum to make up for any possible short-fall you may have had.

In this circumstance, where the estimated figure we held for you was more than your actual income untl 5th April 2010 we would issue you with a lump sum payment for the difference in your award (unless you have a current overpayment in any previous year when the lump sum payment would move to reduce this overpayment).

kaitlinsmummy

We renewed our claim on tuesday OH is self employed and it seems we have over estimated his income by £4k Im also not sure what will happen a friend of mine she had over estimated their income by a 2k or 3k a few years back and they added the underpayment on to her new 4 weekly payments for the new award period

mitchaa

Nothing will happen if the income level is for the child element of CTC only.

For example, if your estimated joint income was £40k and you earned £36k then you will not receive any additional premium as you are in the child element only band.

If you estimated £18k and only earned £14k then yes you will be due some form of payment back. Probably £1k or so.

mossy

Kaitlins mummy, we overestimated our income 2008-09 and once we'd confirmed our final income for that year the underpayment amount was worked out and was added to our 4 weekly payments exactly as it was for your friend.

I'm not sure if there is a reason why some people receive lump sum payments and some have it added to their 4 weekly payments. It may be to do with how much the underpayment value is.

One year (quite a while ago) we were overpaid although it had been sorted and the money reclaimed by HMRC via the following years payments before the year we were underpaid. I don't know if that was a factor in why our underpayment was added to the 4 weekly payment. I have to say I prefer it being added to the four weekly payment personally.

We have another underpayment for 2009-10 so it will be interesting to see how it's added.

kaitlinsmummy

Mossy- We have only ever had one overpayment for £14 which was deducted from our whole years award but that was the 1st year we claimed when our daughter was born 2005/2006 figures. I know a few people who have had lump sums for underpayments but this one friend had it added to the rest of her payments but i dont know if there were any previous overpayments she owed for if you get what I mean. I have roughly worked out by looking at the limits we are about £800 under paid so will just have to see what happens.

mossy

I phoned through our 2009-10 details the other day. We underestimated it by £4500 oops...ah well this year will be better I'm sure!!

Anyway the chap said that we'd get the paperwork through in the next couple of weeks and if there's an underpayment due to us it would be paid in a lump sum. We'll wait and see what happens....

kaitlinsmummy

mossy wrote: »

I phoned through our 2009-10 details the other day. We underestimated it by £4500 oops...ah well this year will be better I'm sure!!

Anyway the chap said that we'd get the paperwork through in the next couple of weeks and if there's an underpayment due to us it would be paid in a lump sum. We'll wait and see what happens....

looks like ours has been sorted we had a smaller one of payment on friday which I am assuming will be round what the new weekly payment will be gone up by about £17 a week from last years award so dont know what has happened with the underpayment we think we have cos surley if they have put one one of payment in to our account they wont put another in will they? so looks like we will have to wait till the new award notice comes to see what they have done

mossy

kaitlinsmummy wrote: »

looks like ours has been sorted we had a smaller one of payment on friday which I am assuming will be round what the new weekly payment will be gone up by about £17 a week from last years award so dont know what has happened with the underpayment we think we have cos surley if they have put one one of payment in to our account they wont put another in will they? so looks like we will have to wait till the new award notice comes to see what they have done

Oh I often get all sorts of random payments around this time of the year. I had about £50 between wtc and ctc the other day for no apparent reason and that was before phoning through last years details!!

Like I mentioned we've never had a lump sum figure before (although as our ex-landlord has gone in to hiding with our £1300 deposit...I think I wouldn't mind a lump sum now!!) so I don't know what normally happens, but I know that when they've added the underpayment to the four weekly payments for the next year we've had a few extra payments come through which haven't been on the normal dates if that makes sense.