Overpayment Question

supercelts7

Sorry if this has been answered previously.

I recently received my Working Tax Credit award and they say I'm overpaid by £900+.

My gripe with this, is that I took my earnings straight off my P60 and fail to see how it can be wrong? Can anyone enlighten me? :huh:

hedid2003

hi
have you had a pay rise in the last tax year or has anything changed at all.

supercelts7

Yes, I had a 2% payrise but I don't think that would take me up to £900

alwaysonthego_2

Tax credits are paid for the previous year. So if 09-10 tax year your award was based on that year's estimated earnings rather than 08-09 actual earnings you will have an overpayment if you underestimated your earnings for the year; or your income was higher 09-10 than it was 08-09 and you was recieving an higher payment based on 08-09 at the beginning of this tax year until you renewed it thus creating an overpayment.

supercelts7

Okay, thanks. That is what I appear to have done.

hedid2003

If you find you have been overpayed you can always complain,give them a call and find out whats going on and ask them to explain.Remember all calls are recorded if you feel you have been given wrong information or not enough information you can request to listen to all previous phone calls you have had with wtc

alwaysonthego_2

hedid2003 wrote: »

If you find you have been overpayed you can always complain,give them a call and find out whats going on and ask them to explain.Remember all calls are recorded if you feel you have been given wrong information or not enough information you can request to listen to all previous phone calls you have had with wtc

The correct term would be to appeal it rather than complain.

As Hedid2003 says you should ask how they have worked out the overpayment, however the onus is on the claimant to ensure that their claim is up-to-date even if the tax credit system is complicated.

If the overpayment is the claimants fault, if they will be in hardship because of having to pay it back they usually will allow for the debt to be spread out over a year.

hedid2003

ive been informed about paying back overpayments from wtc that if it is the claimants fault of the overpayment they will spread payment as to what you can afford so if on low income and prepared to clear the debt in the best way you can they will understand and not hound you for all the money back in a set time ie a year.