bit confused housing benefit vs tax credits.

jojo_2012_2

I recently had my tax credits reassessed and was found to have been overpaid. Leaving all future tax credits til april at £0 a week.
I believe they messed up and took my income to be far less than it was. If they had understood my full income I would have been entitled to far less, and therefore able to apply for a higher rate of housing benefit. This would mean right now I wouldn't be sitting here £700 overpaid.

They were previously planning on overpaying me by £66 a week til, but in my very upset state I requested they not overpay me. Now they aren't (doh!) and I got a letter to say I will be getting £0 a week.

Since then I've had HB reassessed and am entitled to £70ish a week (I was previously only entitled to about £3 due to the high tax credits) This calculation was done using the £66 a week tax credits not £0. This isn't enough to live on IMO.

Now my question is this. Should I appeal against the tax credit decision, this would involve requesting CDs of old telephone conversations etc, possibly an appeal hearing (according the HMRC website). All could take time, meanwhile we're struggling to make ends meet. Also the end result could just mean me being overpaid til April - :wave: hello debt!!

Or do I go to HB and tell them my tax credits are now £0? Following the HB calculations, if my tax credits are £0 a week instead of £66, I would be entitled to something like £140 a week HB, which would make all my problems disappear in about 2 weeks time I'm not sure how HB work.

What should I do?

ps if this post sounds familiar, I posted when I originally had the tax credit problem but had a different username then.

MamaMoo_2

Go to HB. You have a duty to inform them of your change in income (ie your new TC award)
Bring proof of your new award, and they should re-calculate your HB claim accordingly.

Morglin

Housing Benefit is paid on what you are actually getting, income wise - take/send the new entitlement notice from Tax Credits to them and let HB adjust your benefits.

Tax Credits and Pensions Tax Credits are supposed to notify HB dept., themselves of any change to your entitlement, but they often don't, so make sure HB have all the information.

Lin

jojo_2012_2

Thanks everyone. Last time tax creds informed HB and they stopped my payments so as "not to overpay me". Turns out I was due a massive rise and actually had to suffer 0 tax creds and HB for 3 weeks while they reviewed it. I can't let that happen again, gonna go down there with my evidence this afternoon.