Tax credits - will I have an overpayment?

Bradbrown

Our joint income has gone over £58,000 in tax year 2010 / 2011.

This mean we no longer qualify for tax credits.

We have always only got the minimum £547 family part of child tax credit.

I told the tax credit office about this in December but they are still paying me tax credits which I presume will end in April when we will get a "nil" award.

Will I be hit with an overpayment of all this year's credits or does the income disregard come into effect.

Anyone know?

Caz3121

If your current award is based on the previous years income then the £25k disregard comes into play. However if it is based on your own estimate of this years income then there will be an overpayment

Bradbrown

When I rang them in December I gave them an estimate of this years income - they then sent me an amended award - but I don't understand why they are still paying me the same credits

bestpud

When you renewed your tax credit award (between April and July 2010) - did they base your 2010/2011 award on your actual income from last year?

Or did you tell them your 2010/2011 income would be lower than your 2009/2010 income? If you did say your income would be lower this year, did they base your award on the estimated figure you gave?

Its not what you did in December but rather what you did when you renewed, or applied if this is your first year of claiming, that matters.

Bradbrown

I have always been an auto renewal so only have to update if my income goes above 50,000.
In July my award would have been automatically renewed on the assumption my income was below 50,000.
In December I realised my estimated income would be 58,000 or more - taking me out of tax credits altogether - I contacted the tax credits people to tell them and they amended my claim to take into account my estimated earnings for this tax year.

I thought they would have then stopped paying me anything but they are still paying me the minimum amount of family element - £41 a month.

Bradbrown

bump

Anyone any idea if I will have to pay back this year's payments?

no-oneknowsme

However if it is based on your own estimate of this years income then there will be an overpayment

Op you have already been told that if you estimated your income for this year then you will have an overpayment.....

You later posted this :

When I rang them in December I gave them an estimate of this years income - they then sent me an amended award - but I don't understand why they are still paying me the same credits

Caz has told you that an overpayment will occur if you have given an estimate to tco.

My advice would be not to touch the payments you are receiving as it looks as though you will be asking to repay come renewal time which is sometime soon after April.

Sixer

no-oneknowsme wrote: »

Op you have already been told that if you estimated your income for this year then you will have an overpayment.....

You later posted this :



Caz has told you that an overpayment will occur if you have given an estimate to tco.

My advice would be not to touch the payments you are receiving as it looks as though you will be asking to repay come renewal time which is sometime soon after April.

Is this correct? Isn't this only the case when income goes down, not up?

The OP was on auto-renewals up until and including July 2010's renewal. In December 2010, she realised her money had gone up. She notified the extra income.

Since tax credits are based on the previous year usually, the money she receives in 2010/2011 is based on income from 2009/2010 - when, presumably, the OP was entitled to the minimum family element for 2009/2010, to be paid over the course of 2010/2011.

Surely she'll continue to get that until April, and then she'll no longer receive payments as 2011/2012 payments will be based on 2010/2011 income, which will have been over the threshold? So no repayments?

OP: did you earn under the maximum threshold in 2009/2010?

Bradbrown

Sixer wrote: »

OP: did you earn under the maximum threshold in 2009/2010?

Yes, our earnings were under the maximum threshold in 2009/2010.

I have a feeling that because I changed my income "In year" they will insist the disregard does not come into play.

I actuallyb basked them to stop the payments but they said they couldn't.

lol:o

no-oneknowsme

I actuallyb basked them to stop the payments but they said they couldn't.

So you will have been putting the money away in a seperate account ready to pay straight back when they ask for it in April time ?;)

Bradbrown

no-oneknowsme wrote: »

So you will have been putting the money away in a seperate account ready to pay straight back when they ask for it in April time ?;)

Of course - I wish they would just stop the bloody payments - I can't understand why they are still paying me if they are just gonna grab it all back in April.

There seems to be conflicting opinions on here.

But I think I will be paying back this years cash.