Tax credit overpayments

mrginge

Hello,

bit of advice / info required on the best way to proceed...

When our tax credits were reviewed in june the childrens tax credit we received was stopped. we were just under the threshold last year and so with the banding reducing this year our credit was stopped.

However i have been notified of an overpayment, since we were being paid from april-june this year. The notification said hmrc would reclaim the amount from future claims, but in reality we won't (hopefully) be getting anything from them in the future since our gross salaries have also gone up by about 15k in the last few months.

Knowing how inept hmrc are at the best of times is it safe to assume that they won;t suddenly decide to chase me for this overpayment in one lump sum and/or start charging me interest?

I have no problem with ringing them up and repaying, or for them to reduce my tax code. But if they have the matter in hand then is there any point?

zagfles

They'll probably send you a renewal next year and, as you'll probably be earning far too much for tax credits, end your claim then (or suggest it's ended), and then they'll ask for the overpayment back. You can usually negotiate paying it in installments if you want.