Child Tax Overpayment?

SIRENS

Hi

Just wondering if anyone can advice me.
I completed my renewal by phone last week and now have had a letter saying that they overpaid me last year and will be deducting £103 per month until december from my payment (currently £360 per month)

This is leaving us in a real hole as my dh was made redundant last year, we are surviving soley on my part time salary and the child tax credit,

Is there anyway I can delay paying this back until dh is back in work?

They say the overpayment came about because my salary was underestimated last year, this is more than likely true as I get a small bonus quarterly which is performance related so hard to estimate.

Also it seem that we are not intitled to working tax credit or any other help, my salary is approx £17k and we get no help with out mortgage or any other benefit (appart from child benefit)

Does this sound correct, am really struggling to meet all the bills and feed the kids:(

Thanks so much

themonkeybutler

You can write in and dispute the overpayment. But by the sounds of it. save yourself the cost of a stamp, because you wont get the decision you want. the best thing to do is give the helpline a call, explain the recovery rate is too high and ask them to lower it. This means instead of repaying £106 per month for 6 months, you can halve the amount and double the length of time you repay it over (or percentage variations thereof). There are no issues with this, and its as easy as clicking a button on the system to update the repayment rate.

SIRENS

Thanks for that will call them on monday, will stand a better chance of finding £50 per month than £100!

scrounger_2

Sadly you`ll have to join the queue of the "overpayers":(

SIRENS

Called tc and they have to send a request to their head office, so will have to wait and se,e ho hum.

I really don't understand how it works, they are docking me for an overpayment but then they credited me with an extra payment of £130?

Anyway I don't mind repaying anything owed it would be just better if I could do it when dh is back on his feet.

karenx

With your salery and your partner out of work just now you may find you qualify for working tax credits till he is back working, but it could just be a very small amount. And on 21k per year you wont get any help with your mortgage

helenj36

didnt the disregard not cover you

SIRENS

Hi
Thanks for your replies.

To be honest, I did read the the post about £25k rule but I didn't understand it?

Sorry if I'm being a bit dim but all this goes right over my head.

Going from my and dh p60's I rang the tc people and gave our totla in come as £18k.

They said that when I rang last year (aug?) I gave my income as £15k so underestimated our income by 3k?

How does the 25k work, do I still need to repay the overpayment?

I am the only working part time?

Thanks Tash

nlwsaint

Help! I'm worried sick. I have just got my Tax Credit annual review. I have only been getting the family element of child tax credit of appx £550 per year as my son who is now 18 was at college. Last year when the review came my circumstances had not changed so I did nothing. In about Oct last year, my son dropped out of college but didn't tell us until Nov. I am pretty certain that I rang at the time & told them (I definately told someone by phone) & was told that as the figure was based on previous tax year, I would only need to let them know once the new review form came. Today, I rang to tell them of the change in circumstances & was told that I couldn't have rang them as there was no call logged. I was made to feel like a criminal for not telling them of the changes within 1 Month. I know that I will have to repay them but what will happen to me? Will I face an investigation or fine? I feel so sick with worry. I can't afford to pay it back in one lump sum.

System

SIRENS wrote: »

Hi
Thanks for your replies.

To be honest, I did read the the post about £25k rule but I didn't understand it?

Sorry if I'm being a bit dim but all this goes right over my head.

Going from my and dh p60's I rang the tc people and gave our totla in come as £18k.

They said that when I rang last year (aug?) I gave my income as £15k so underestimated our income by 3k?

How does the 25k work, do I still need to repay the overpayment?

I am the only working part time?

Thanks Tash

The £25k disregard only works if you don't advise TCO of a lower estimated income after you've completed your annual declaration for the previous year.
In your case it sounds as though you did the annual declaration for 08/09 before 31st July 2009 then rang in August 2009 and told them you thought your household income would be lower in 09/10 than it had been in 08/09. Your payments should then have increased to mirror the estimated drop in your income. Supplying the lower estimated income means you forfeighted the £25K disregard and so you do have to repay the overpayment.

HTH

System

nlwsaint wrote: »

Help! I'm worried sick. I have just got my Tax Credit annual review. I have only been getting the family element of child tax credit of appx £550 per year as my son who is now 18 was at college. Last year when the review came my circumstances had not changed so I did nothing. In about Oct last year, my son dropped out of college but didn't tell us until Nov. I am pretty certain that I rang at the time & told them (I definately told someone by phone) & was told that as the figure was based on previous tax year, I would only need to let them know once the new review form came. Today, I rang to tell them of the change in circumstances & was told that I couldn't have rang them as there was no call logged. I was made to feel like a criminal for not telling them of the changes within 1 Month. I know that I will have to repay them but what will happen to me? Will I face an investigation or fine? I feel so sick with worry. I can't afford to pay it back in one lump sum.

There will be no fine but your entitlement for 09/10 will be recalculated to reflect the change in circumstances and you will be expected to repay any overpayment.

Perhaps you called the Child Benefit office but forgot to call the Tax Credit Office.