Overpayments

oldhippy01

I'm not sure if anyone can give me any information regarding a letter of overpayment I have recieved.

The letter states that this year I was not qualified for any tax credits and I have been overpaid £5400 and they require this amount to be paided back.

In the year 2009 to 2010 I was self employed making a loss in that tax year.

This year I quit self employment and took a paid position which I estimate this years income to be around 9k with a private pension of 3k making a toltal income for 2010 to 2011 of 12k.

I thought I would be under the dusregard but it seems I am not.
On the tax credit site it also says from today till april I am entiled to £562.84.

May anyone give me any thoughts on this matter.

Thanks

zagfles

It is under the disregard but it might be because of something else. How many hours do you work - if you don't have kids/disbilities you need to work at least 30 hours to get WTC.

oldhippy01

zagfles wrote: »

It is under the disregard but it might be because of something else. How many hours do you work - if you don't have kids/disbilities you need to work at least 30 hours to get WTC.

Hi there

I work 32 hrs plus overtime when its available with the 50 plus element and disability element

my 2010 to 2011 award was £6404 with a income of £3013, this was with 30 plus hours, 50 plus and disability element.

The £3013 did not reduce the award.

With paid employment I expect to make estimated for the year 2010 to 2011 a combined total of £12000. even if this only gained aa award of £1.00 a week it will preserve the disabilty, 50 plus and 30 hr plus elements and reduce the overpayment a massive amount and just leave the overpayment to around 500 pounds. Im sure they have estimated my income over £14000 to state I should not get any award.

Thanks

zagfles

oldhippy01 wrote: »

Hi there

I work 32 hrs plus overtime when its available with the 50 plus element and disability element

my 2010 to 2011 award was £6404 with a income of £3013, this was with 30 plus hours, 50 plus and disability element.

The £3013 did not reduce the award.

With paid employment I expect to make estimated for the year 2010 to 2011 a combined total of £12000. even if this only gained aa award of £1.00 a week it will preserve the disabilty, 50 plus and 30 hr plus elements and reduce the overpayment a massive amount and just leave the overpayment to around 500 pounds. Im sure they have estimated my income over £14000 to state I should not get any award.

Thanks

It's definitely not your income - your income last tax year was under the threshold £6420, and the disregard this year is 25k so you could earn £31420 this year and still get full tax credits!

They think you're not eligible for some other reason - maybe they somehow registered you quit SE but didn't register that you started paid employment.

oldhippy01

Yes its really odd the letter i got from them states I informed them of change of circumstances and as a result of this I no longer entitled to tax credits, I mentioned to them my pay plus overtime will be in the pay area of 8 to 9 K plus my 3k pension.

There was no calculation on the letter of how they calculated the award and what years used. I am thinking looking at reduction for earnings they calculated i went over 13k a year, even £1.00 over would stop tax credits.

I think when they send the demand for the 5.2k back i can only appeal and send them my calculation. as i would rather loose wages then have a 5.2k bill.

oldhippy01

zagfles wrote: »

They think you're not eligible for some other reason - maybe they somehow registered you quit SE but didn't register that you started paid employment.

Im beginning to think this myself now, somewhere its crossed paths, if they demand all paid tax credits back it will be very little as Im aproaching retirment this year and the overpayment might well go beyond my finial sleep.

zagfles

oldhippy01 wrote: »

Yes its really odd the letter i got from them states I informed them of change of circumstances and as a result of this I no longer entitled to tax credits, I mentioned to them my pay plus overtime will be in the pay area of 8 to 9 K plus my 3k pension.

There was no calculation on the letter of how they calculated the award and what years used. I am thinking looking at reduction for earnings they calculated i went over 13k a year, even £1.00 over would stop tax credits.

I think when they send the demand for the 5.2k back i can only appeal and send them my calculation. as i would rather loose wages then have a 5.2k bill.

It can really only be that that they think you're not working. Give them a ring tomorrow and tell them you are! It's nothing to do with how much you earn as you are miles off earning too much for tax credits. Unless they added a 0 to your income!

This should be easily sorted. They've screwed up.

oldhippy01

briancrum wrote: »

were you unemployed for 6 months before you started work?

No been self employed since april 2010 Im going to wait and see what comes in mail in next couple of weeks then once have something in writing can see what they are doing, I prefer a paper trace with gov departments as I have found telephone conversations get denied if they mess up :rotfl:

oldhippy01

briancrum wrote: »

you HAVE to have been out of work for 6 months before starting work to qualify or the 50 plus element! you dont just get it if youre over 50!!!

Sorry there Yes I was out of work over 6 months up to november 2009 from then 1 years 50 plus element which terminated November 2010.

oldhippy01

briancrum wrote: »

was there a gap between self employment and employment?

No was from one direct to other, but there was a gap between informing of change of income/employment and ceasing self employment (1 week)