Tax credits demand £6200 before 27th June

Northants_Simon

I'm more than a little worried by this. I received a demand from HMRC to pay £6200 in tax credits overpayments by 27th June. Very generously they will allow me to pay over 12 months! That's only £520 a month.

Most of the overpayment is from the stupid way they worked out tax credits in 2003, they asked for your income figures from 2001 (when my income was tiny due to setting up a new business). I gave them the correct figures as requested.

I have known about the overpayment for years, but tax credits said not to worry as they would claw it back from future payments. Now they say I have to pay it back either in one lump sum or over 12 months.

As a hard working family we are already being hit with increased tax liabilities and then get a double whammy of being forced to pay this back on top.

Aarons_mummy

If it puts you in financial hardship you can ask them to reconsider the amount you pay back per month, they may ask for incomings/outgoings but it's worth a letter/call to find out.

life_in_termoil

I had an overpayment of £2900 and they allowed me to pay it back at £30 a month.

vax2002

Time for a trip to the Citizens advice

bunny999

Northants_Simon wrote: »

I'm more than a little worried by this. I received a demand from HMRC to pay £6200 in tax credits overpayments by 27th June. Very generously they will allow me to pay over 12 months! That's only £520 a month.

Most of the overpayment is from the stupid way they worked out tax credits in 2003, they asked for your income figures from 2001 (when my income was tiny due to setting up a new business). I gave them the correct figures as requested.

I have known about the overpayment for years, but tax credits said not to worry as they would claw it back from future payments. Now they say I have to pay it back either in one lump sum or over 12 months.

As a hard working family we are already being hit with increased tax liabilities and then get a double whammy of being forced to pay this back on top.

Says it all.

Northants_Simon

bunny999 wrote: »

Says it all.

What's the point? Yes I have known about the overpayment since 2005 and have asked HMRC in the past if I can pay some of it back, they said I couldn't unless I cancelled my tax credits with them. It's not my fault how the system works - which is my whole point. It was totally crazy for them to ask for 2001 figures to work out how much they would pay you in 2003/4. Then each year if you are self employed you have to guess how much profit you will make before the tax year even starts, then give final figures once you have your accounts back from your accountant. It's a system which doesn't work unless you are employed and know how much you will get paid that year.

My point is I have always given the correct figures, it's just the crazy system that caused the overpayments.

Northants_Simon

life_in_termoil wrote: »

I had an overpayment of £2900 and they allowed me to pay it back at £30 a month.

Did they just say you could pay back small amounts or did you have to jump through hoops for that? I called the helpline today and was told they normally expect you to pay them back within 12 months, but if I send them income and expenditure figures they might consider given me longer to pay.

Darlyd

I am in exact same position as you.. Although mine was for last years figures, I owe them short of 7k. And it was their fault they missed a digit out instead of 28k they put 8k. :eek: (we wrote it down on a form, and I don't recall having the letter to check). I told them not to pay me any TC this year and to pay it off the debt. (renewel states they still owe us £700 (ish) for the rest of this year).

what you need to do is let them know what you can afford each month to pay back.

baza52

you could have put a little by each week if you KNEW you would have to pay it back at some point.
You would of had 6 years worth of savings to pay it back with.

Northants_Simon

baza52 wrote: »

you could have put a little by each week if you KNEW you would have to pay it back at some point.
You would of had 6 years worth of savings to pay it back with.

True, but like I said tax credits helpline said they wouldn't be asking for it back and would reduce future payments to recover it as we still have eight years until our youngest child is no longer eligible for tax credits. Also if I had money to spare I wouldn't need tax credits in the first place.


I have spent hours on the phone today talking to tax credits and finally got through to someone nice who was able to help after being passed from person to person and being given different numbers to call. They have agreed to let me pay it back over 5 years. That's much better than the 12 months they said at the start.

istewar5

I have had exactly the same experience as you. They over paid me and I tried at the time for them to take it back but they said they couldn't. I made numerous phone calls etc. They made a mistake with our income's and originally had my wifes name wrong. At one point they were paying me money through my employers!! Again I asked them to stop but they said that they could not.

Is there any way of getting their demand of over £3k written off?