Tax Credit Overpayment

InsertWittyName

Hi.

Hoping to get some opinions before I speak to the tax credit folk tomorrow.

Got our tax credit renewal back yesterday to find we're not entitled to anything from now on - my earnings have risen slightly from last year and we were only receiving ~£9 a week anyway so this wasn't a surprise.

What is concerning me is that they've been paying us the ~£9 a week since April and now we weren't entitled to that money. The letter states the following:

Amount to be paid: £0
Minus payments already paid by us: £254.04
You will be overpaid for this period by £254.04

We intent to collect this from future award(s) by reducing your payments under 29(4) of the Tax Credits Act 2002.

My question is how are they going to collect it by reducing our payments? It doesn't get any lower than £0 :rotfl:

Anyone been through this before?

Thanks!

Lady_gaga

yes, you'll need to call them and arange to pay it back out of your own pocket...

BrettMorganxD

Lady_gaga wrote: »

yes, you'll need to call them and arange to pay it back out of your own pocket...

This, and I think they will let you pay it back in weekly installments

billybathgate

Does anyone know if you can stop repaying a hefty overpayment if I am on job seekers allowance and my wife is working although on a low wage? We have three children.

We are already paying the absolute minimum but are looking at ways to cut a monthly bill.

Thanks

zagfles

InsertWittyName wrote: »

Hi.

Hoping to get some opinions before I speak to the tax credit folk tomorrow.

Got our tax credit renewal back yesterday to find we're not entitled to anything from now on - my earnings have risen slightly from last year and we were only receiving ~£9 a week anyway so this wasn't a surprise.

What is concerning me is that they've been paying us the ~£9 a week since April and now we weren't entitled to that money. The letter states the following:

Amount to be paid: £0
Minus payments already paid by us: £254.04
You will be overpaid for this period by £254.04

We intent to collect this from future award(s) by reducing your payments under 29(4) of the Tax Credits Act 2002.

My question is how are they going to collect it by reducing our payments? It doesn't get any lower than £0 :rotfl:

Anyone been through this before?

Thanks!

At some stage (probably next year) they'll suggest your tax credits claim is ended, at which point they'll demand the overpayment back. You may be able to negotiate installments, but probably not in a small overpayment case like this.

pink_orchid

My hubs and I were overpaid a lot of money in one go (£3500) a few years ago. I called them and told them and said I wanted to pay it back. I knew it was a mistake. They refused! They said they had to take it back out of my payments. We weren't getting any payments! I tried again to get them to take it back. They refused again. Said it had to come out of our payments. So we spent it.
Then our financial circumstances changed and we started to get payments and they took a little off each month. It would take years to pay it back. BUT then we heard that some people were not having to pay it back after an appeal to the tax credits people ie if they had been given a refund and it was through no fault of their own. We appealed and they decided that the refund was through no fault of our own and cancelled all future repayments!
Don't know if that is still on the go but it is worth pursuing if it is?

Pink

InsertWittyName

pink_orchid wrote: »

Don't know if that is still on the go but it is worth pursuing if it is?
Pink

Thanks for the heads up pink, but I don't have a problem with paying this back - we've had the money so I see no reason to not pay it back.

zagfles wrote: »

At some stage (probably next year) they'll suggest your tax credits claim is ended, at which point they'll demand the overpayment back. You may be able to negotiate installments, but probably not in a small overpayment case like this.

You were spot on with this. Rang them tonight and they said they will wait until next renewal to see what my actually (instead of estimate) income will be, and at that time they will require the money back if I still fall into the same income bracket.

I'll start putting a little away each week for this so it doesn't seem such a big hit come next year

Thanks for the help!