Please help - Tax Credits Overpayment

missminx

Hi all, just had a letter today saying we owe almost 2.5k to the tax credits as an overpayment. They claim to have sent details previously but we have received absolutely nothing. I can't understand it at all. They had underpaid us up to last April and I over estimated my income for this year to avoid this. It makes no sense. What action should I take? Should I write to them explaining that I have received nothing and for them to send it out, or phone them? I have had trouble with them on the phone in the past and find I don't get anywhere with them. The letter says if we haven't paid all this money within 4 weeks they will take enforcement action. I am so confused, surely they should have sent things out before, and I could understand one going missing but we haven't received anything. Sorry for rambling but having a panic and don't know what I should do. I am scared my current tax credits will stop, and we rely on them to survive.

AnxiousMum

The overpayment may be from previous years, not last year or this....does it tell you when the overpayment occurred or give you any breakdown of how it occurred? Your first step would be to get this information.

missminx

The last thing I had was an award notice, about 8 months ago I think. How many years ago could it go back? I haven't got any breakdown, no dates and no reasons. It says they already sent that, but if they have we never got it.

AnxiousMum

There was someone posting on here the other day that was informed they had an overpayment from about 2006/7 - also said it was the first they had heard of it.

I've read on here that depending on the amounts owed (if you really do owe it) they will deduct amounts over a set period of time from your future awards. Get in touch with them immediately asking for a breakdown of what they believe to be owed, or if you can't get through, don't waste time and go to your local tax office to request it.

missminx

Thanks anxious Mum. If it goes back that far, I have no idea how I'm going to be able to prove anything with them. I have always informed them of stuff, but they have made so many mistakes before that have taken me months to sort out I dread to think what they have done now. :eek:

missminx

briancrum wrote: »

tax credits go back to 2003-4 if you dig that award notice out on the back page it may mention an overpayment

Sorry Brian, I didn't see your reply when I posted to AM. I definitely didn't have anything about an overpayment on any recent award notices. But I don't have paperwork going back very far as it all got damaged a few years ago.

This is just what I don't need at the moment

AnxiousMum

I would think that any overpayments would be automatically deducted the following year......but......I do think that they are now finding old overpayments which haven't been collected on as there have been a few of these posts lately. If you have changed your claim at any time - from single to joint, or joint to single, and the overpayment is from the 'ended' claim, they can't claim from your new award - so would explain the letter. Have you made any such changes to your award since you first claimed?

missminx

Ah Thanks AM. That makes sense as I changed to a joint claim in 2008/09. So it sounds like it's old. Oh well, this is going to be fun to sort out.
Thanks for advice given

halibut2209

Depending on your income, there are limits as to how much they can take off your credits, so it's highly unlikely they will stop them