Could someone pls help with TC mess?

daviecol

Even if you owe them money they will only reduce your future payments by a small amount. Your children are only 5 & 6 this means you still have at least 11 years of credits to pay back any thing you owe.

And even if in the worst case at the even if in 11 years time they still hadn't reclaimed all you owe you can agree to repay them in monthly instalments. I work with a friend who is doing this, she's agreed to pay back £5 per month.

In other words....don't worry!

bestpud

It's not as simple as suggested earlier in the thread, I'm afraid.

The reason is, you informed them your income was going to be lower and they increased your award accordingly.

Therefore, your award is based on the estimation you gave them when you were full time and your OH on JSA.

Last years income is no longer relevent and you will have an overpayment because you will have lost the income disregard.

So, your award is based on an income of £15k plus the £65 a week. You've actually earned £30k so any tax credits paid on the difference between the two will need to be repaid.

You are supposed to inform them of job changes, but hopefully, they will only want the overpayment back.

It won't be in lump sum, as said, and you can negotiate a lower payment if you can prove it is causing financial hardship.

Sorry if that has worried you again, but it's always better to be prepared - shocks aren't good IMO.

MsShorty

Thanks bestpud for correcting me. I missed the bit in the OP where the tax credits were adjusted to take into account the partner's JSA. I based my response on the estimated £39K and actual £30K.

Like I said, always happy to be corrected.

Merrylegs1969, as all of the advice on here - phone tax credits tomorrow and explain. The sooner you contact them, the sooner the matter can be sorted.

Please try not to worry, what's done is done. Now concentrate on rectifying the situation. First step is to ring HMRC and see what happens.

Please let us know how you get on.

Merrylegs1969

bestpud wrote: »

It's not as simple as suggested earlier in the thread, I'm afraid.

The reason is, you informed them your income was going to be lower and they increased your award accordingly.

Therefore, your award is based on the estimation you gave them when you were full time and your OH on JSA.

Last years income is no longer relevent and you will have an overpayment because you will have lost the income disregard.

So, your award is based on an income of £15k plus the £65 a week. You've actually earned £30k so any tax credits paid on the difference between the two will need to be repaid.

You are supposed to inform them of job changes, but hopefully, they will only want the overpayment back.

It won't be in lump sum, as said, and you can negotiate a lower payment if you can prove it is causing financial hardship.

Sorry if that has worried you again, but it's always better to be prepared - shocks aren't good IMO.

Hi Bestpud,

Thanks for your reply. Husband had earned £10K between April and June, so they had already factored that in as I told them when I called them. So there's £25K accounted for.

If they had calculated £65 per week over a year that would be £3380 so, all told, £28380. I'm hoping that is how it'll work out.

I can't believe we've been so stupid.

daviecol

bestpud wrote: »

It's not as simple as suggested earlier in the thread, I'm afraid.

The reason is, you informed them your income was going to be lower and they increased your award accordingly.

Therefore, your award is based on the estimation you gave them when you were full time and your OH on JSA.

Last years income is no longer relevent and you will have an overpayment because you will have lost the income disregard.

So, your award is based on an income of £15k plus the £65 a week. You've actually earned £30k so any tax credits paid on the difference between the two will need to be repaid.

You are supposed to inform them of job changes, but hopefully, they will only want the overpayment back.

It won't be in lump sum, as said, and you can negotiate a lower payment if you can prove it is causing financial hardship.

Sorry if that has worried you again, but it's always better to be prepared - shocks aren't good IMO.

I think you'll find that although yes you will have to pay back the overpayment, all they'll do is reduce future payments to get it back.

I was in almost identical circumstances lost my 40k a year job, informed them. They adjusted my payments, I got another job, forgot to tell them and ended up with an over payment of £1500.

This was over 5 years ago, they just reduce your credits. I asked them to stop paying me any until I'd paid them back but they said they couldn't do that. They can only reduce your credits by so much. So here I am 5 years on still getting credits and I still owe them about £200. It's when your kids grow up and your not eligible for tax credits that they start asking for you to pay it back with your own money.

Honestly, don't worry they'll just reduce future payments until it's paid off, probably slower than you'd like!

Merrylegs1969

Hi Dave,

If I'm working it out right, I reckon that £43 per week x 52 = £2236. Less our original award of £547 = £1689 owed. Which just about tallies, I think with the difference between actual income and what they might've calculated.

I've gone on entitledto and with our estimate of £25K next year, it estimates an award of £51 per week, so hopefully they can claw it back out of that. I don't know where I've had my head but, having been wheelchair bound for 4 months, I did become pretty distressed (depressed even) and the whole thing simply didn't feature on my radar. Went back to work in February and my sole concentration since then has been on trying to get back to normal, children, etc.etc. it wasn't until it plopped onto the doormat a couple of weeks ago that I gave it any consideration.

Regarding CB JSA, to even sound thicker than I already am, is income from that not included on P60? Because husband's P60 has his income from this employment, along with the £10K from previous employment. He was only on it for about 6 weeks but, am wondering now, if I need to add that on. I just assumed that the P60 included everything.

Thanks for your help, I do appreciate it.

bestpud

daviecol wrote: »

I think you'll find that although yes you will have to pay back the overpayment, all they'll do is reduce future payments to get it back.

I was in almost identical circumstances lost my 40k a year job, informed them. They adjusted my payments, I got another job, forgot to tell them and ended up with an over payment of £1500.

This was over 5 years ago, they just reduce your credits. I asked them to stop paying me any until I'd paid them back but they said they couldn't do that. They can only reduce your credits by so much. So here I am 5 years on still getting credits and I still owe them about £200. It's when your kids grow up and your not eligible for tax credits that they start asking for you to pay it back with your own money.

Honestly, don't worry they'll just reduce future payments until it's paid off, probably slower than you'd like!

Isn't that what I said...?

*confused*

bestpud

Merrylegs1969 wrote: »

Hi Dave,

If I'm working it out right, I reckon that £43 per week x 52 = £2236. Less our original award of £547 = £1689 owed. Which just about tallies, I think with the difference between actual income and what they might've calculated.

I've gone on entitledto and with our estimate of £25K next year, it estimates an award of £51 per week, so hopefully they can claw it back out of that. I don't know where I've had my head but, having been wheelchair bound for 4 months, I did become pretty distressed (depressed even) and the whole thing simply didn't feature on my radar. Went back to work in February and my sole concentration since then has been on trying to get back to normal, children, etc.etc. it wasn't until it plopped onto the doormat a couple of weeks ago that I gave it any consideration.

Regarding CB JSA, to even sound thicker than I already am, is income from that not included on P60? Because husband's P60 has his income from this employment, along with the £10K from previous employment. He was only on it for about 6 weeks but, am wondering now, if I need to add that on. I just assumed that the P60 included everything.

Thanks for your help, I do appreciate it.

It is added on but not under income from employment, as far as I am aware. Don't they ask if you have claimed any benefits? I'm sure that is one of the questions I've been asked...?

Merrylegs1969

Well, took a very deep breath and called them. They couldn't have been kinder or more professional, credit where credit's due! Thank you all so much for helping me get my, rather befuddled, head around this. I really appreciate it.

I feel like a weight has been lifted off me, just have to wait and see now what dire financial situations arise as a result. As a family, we're ok and that's what ultimately matters, the rest we can find our way around.

happy_lass

Merrylegs1969 wrote: »

Well, took a very deep breath and called them. They couldn't have been kinder or more professional, credit where credit's due! Thank you all so much for helping me get my, rather befuddled, head around this. I really appreciate it.

I feel like a weight has been lifted off me, just have to wait and see now what dire financial situations arise as a result. As a family, we're ok and that's what ultimately matters, the rest we can find our way around.

we have an overpayment of roughly £1750 which is being reduced slowly cos they have stopped payments until such time that it is paid off. We did inform them of changes but for one reason or another they have got no record of us telling them (thats another story and we have just had to bite the bullet and accept that, although we have fought hard !!!) dont worry about it. they were not nasty about anything and we accept that we have to pay it back. Now just go and chill for a bit with a cuppa, and tonight when your kids are in bed, chill out with a glass of large red !!! :T:rotfl:take care.