Tax credit - why are extra payments made?

AsknAnswer2

I was doing my online banking, was shocked to see a three figure sum paid in from tax credit today. This is in addition to my normal amount paid.

I've been at them for months (on phone, and in writing) to reduce my payments because they are paying me more than I am currently entitled to, (change of circs meant payments should be lowered) but they still haven't reduced them. Now they've paid me even more, it's madness!

As per usual, helpline was jammed and can't get through so thought someone might have an idea of in what circumstances an additional amount be paid at this time of year? It cant be to do with yearly renewal. I will of course keep trying helpline and write again if need be, but if anyone has an idea of for what reason this could possibly be in the meantime. I feel like I'm banging my head against a brick wall, telling them it's too much over and over and yet they just throw more at me.

Don't get me wrong - I sure could do with the extra but it isn't mine, I'm not entitled to it and it's driving me nuts keeping on at them. Why on earth would they pay me more, when I'm not entitled to what they are already paying me?!

RazWaz

Your tax credits are based on last years income, so even if you earn more this year, (as long as it's not £25k more) you will still get the same payments. If your tax credits stopped for a little bit while they checked things out, the payment could have been back pay.

AsknAnswer2

I have a letter from them today. The payment was meant, as it states in the letter that they are paying it, but why I'm still no closer to knowing; it's definately an extra payment. All the information in the letter is correct in respect of circs and income. Childcare costs are finally going to be brought down, starting next week.