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Will I have a housing benefit overpayment?

I have just renewed my tax credits and had forgotten that in 09/10 I did an awful lot of overtime so that coupled with me being on mat leave in 10/11 means a significant lump sum due. I had never claimed housing/council tax benefit before but did for a few months while on mat leave. I'm now back at work from March and have sent in these payslips to have my HB claim ended, just waiting on this being finalized.

So my question is when I get paid this lump sum will HB review the amounts I was receiving in 10/11 and then apply the lump sum as though I received it throughout the year when it should have been due, therefore meaning I will owe them money back. Obv if this is the case I can pay it as I will have the lump sum and suppose it can't really be anymore than that.

Comments

  • Macro_3
    Macro_3 Posts: 662 Forumite
    lycam wrote: »
    I have just renewed my tax credits and had forgotten that in 09/10 I did an awful lot of overtime so that coupled with me being on mat leave in 10/11 means a significant lump sum due. I had never claimed housing/council tax benefit before but did for a few months while on mat leave. I'm now back at work from March and have sent in these payslips to have my HB claim ended, just waiting on this being finalized.

    So my question is when I get paid this lump sum will HB review the amounts I was receiving in 10/11 and then apply the lump sum as though I received it throughout the year when it should have been due, therefore meaning I will owe them money back. Obv if this is the case I can pay it as I will have the lump sum and suppose it can't really be anymore than that.


    In short, no. Arrears of tax credits are treated as capital. They may reduce your entitlement if your savings were already over the £6000 threshold, but since your claim is already ended/about to end there will be no effect on your entitlement.
  • lycam_2
    lycam_2 Posts: 114 Forumite
    :jWow really. That seems like a bit of a flaw really that if I had gotten the money last year when due I would have had less HB and CTB but because I get it late I just get to keep it. Thanks very much for your help!
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