Overpayment, can they do this?

Loki01

Hi there,
I am a student wtih partner and a child.
In March 2011 we moved house and we qualified for Adults dependant grant from Student Finance. We got £1290 for a year. I know I had to include this as my income for tax credits so I rang them immediatelly. The guy took £300 off it (as other income, which I later found he shouldnt do for this type of grant).
Anyway, rang them on the 18th and renewed. I got £825 as an extra payment for last year. When the final tax credits letter came, there were nothing about the other income. The guy I rang in March def put that on because I got a new notice.
I rang them and told them and I am likeky to owe them money now - the £825 they send me. I am sure I did tell the woman who did the renewal for me about this other income from adults dependant grant.
Is it there error? Will I have to return the money? Thanks

Loki01

.....Anybody?

brien123

Dont worry about it as student grants and loans dont affect tax credits, they only affect housing benefit and council tax benefit. I have been a student for 2 years and have never had my tax credits reduced - you wont owe they money x

bestpud

brien123 wrote: »

Dont worry about it as student grants and loans dont affect tax credits, they only affect housing benefit and council tax benefit. I have been a student for 2 years and have never had my tax credits reduced - you wont owe they money x

The adult dependents grant does count as income because it is to help with living costs. The other grants don't as they are for educational costs.

I don't know the answer to your question, OP, but I would hold on to the £825 just in case you do need to repay it.

I imagine it depends what you said when you renewed, as that would be when the year was finalised...? Did you add it onto your income for last year?

mummytofour

It does count and mine has always been reduced by the 300 as other income.

lorelai34

If there's any overpayment then it will be recovered from subsequent payments. When you phoned to to the renewal if you told the advisor you received the grant and they told you it wasn't classed as other income then that advisor was incorrect. However they have sent you the award letter and you have now called them and added your other income so they will now send you another final act for last tax year.

Loki01

lorelai34 wrote: »

If there's any overpayment then it will be recovered from subsequent payments. When you phoned to to the renewal if you told the advisor you received the grant and they told you it wasn't classed as other income then that advisor was incorrect. However they have sent you the award letter and you have now called them and added your other income so they will now send you another final act for last tax year.

Thanks for the answer. I just hoped, since it was their fault I will not have to refund that money.

Loki01

mummytofour wrote: »

It does count and mine has always been reduced by the 300 as other income.

It says on gov. uk website that they shouldnt take £300 off.

Loki01

I just wondered it is their error, isnt it? I did declare it, she just did it wrong. Will I still have to return money?

williacg

It's unlikely that they'll just write if off. As previous poster suggested, don't spend the money, you know that you're not entitled to it, it was simply a mistake, OK, on their part and not yours, but it was still a mistake, if the error had been reversed, you would expect them to repay the sum back to you wouldn't you?

dmg24

Loki01 wrote: »

Thanks for the answer. I just hoped, since it was their fault I will not have to refund that money.

Why would you hope this, as you know that you are not entitled to it?