Child Tax Credit overpayment - help...

Mandie71

Hi all,
I have just received my renewal notice for Tax Credits which I have always done over the phone with my P60 for ease.

As my seven year old son was born with a heart condition I have always received DLA (Higher Rate Care Component), and so have received the disability element of the CTC.

My son had open heart surgery in 2010 and we had to complete new DLA forms very soon after coming out of hospital. The award dropped down to the middle rate care component, but I didn't even think to let the Tax Credits people know at the time because I was still looking after my son post surgery, and I was under a lot of emotional strain. A lot has happened since then (separation, relocation etc) and so I just carried on and renewed my Tax Credits annually over the telephone. My income etc has always stayed roughly the same so renewing was always a very quick process and they just asked if my son was still receiving DLA to which I have always replied yes (because he does), and they never asked wether it was higher rate or not so I never thought about it.

I have recently received a letter from the DLA about payments which has put in in the forefront of my mind, coupled with receiving my Tax Credits forms, I now realise the huge error I have made, and my heart is in my mouth.

It has been an honest mistake and I will tell them about it but I am really worrying about how they will penalise me and how they will make me pay the money back. I am a single mum and only work 20hrs a week self employed because my son has always needed me at home, so can only afford to pay it back in small payments.

I just wondered if anyone has any experience of this, or any tips on how to approach it, as I have heard that they can be brutal when it comes to overpayments, however honest a mistake it was and whatever the situation.

Thanks in advance.
Mandie

no-oneknowsme

Mandie , is it the SEVERE disabilty premium you have been receiving for your Son?

If it IS then once your child was dropped down onto the middle rate of DLA you should have informed the TCO and they would have adjusted your premium accordingly.

As long as your Son is still getting DLA then they will be entitled to the disability premium , I know this for sure as I received it for my Daughter when she was receiving middle rate care DLA .

You need to find out (check your last tax credit award notice maybe?) if it is the severe disability premium you have been receiving or just the "standard" premium.

If its the standard one then you have nothing to worry about as your Son is still receiving DLA and so is still entitled to the extra money.

The way I see it is that if you have been reeceiving the sever disability premium and yet were only entitled to the "standard" premium then the over payment to tco may not be as much as you think.

no-oneknowsme

Mandie , I have copied this from HMRC tax credits page

Children with disabilities - can you get extra Child Tax Credit?
If your child has a disability, or if you're responsible for a child with a disability, you may qualify for extra Child Tax Credit.
On this page:

• Who can get the extra money?
• How much will you get?
• How to claim
• More useful links

Who can get the extra money?

You can get extra Child Tax Credit if any one of the following applies:

• Disability Living Allowance is paid for your child
• your child is registered blind
• your child came off the blind register in the 28 weeks before you claimed tax credits

If the Highest Rate Care Component of Disability Living Allowance is paid for your child, you may get an additional payment for their severe disability.
You can still qualify for the extra money even if the Disability Living Allowance stops because your child goes into hospital.
Disability Living Allowance information on Directgov (Opens new window)
Top
How much will you get?

The amount of extra Child Tax Credit you get depends on how much care your child needs. In this tax year - 6 April 2012 to 5 April 2013 - you could get up to approximately:

• £2,950 a year, that is around £57 a week, if your child is disabled
• £4,140 a year, that is around £80 a week, if your child is severely disabled

The amount you get also depends on other money you have coming in.
Disability Living Allowance doesn't count as income when your tax credits are worked out.
Other benefits like Carer's Allowance do count as income and can reduce your tax credit payments.
To find out more about how much you may get, use the online calculator or call the Tax Credit Helpline.


Hopefully it will be of some help to you.

shedboy94

Mandie71 wrote: »

Hi all,
I have just received my renewal notice for Tax Credits which I have always done over the phone with my P60 for ease.

As my seven year old son was born with a heart condition I have always received DLA (Higher Rate Care Component), and so have received the disability element of the CTC.

My son had open heart surgery in 2010 and we had to complete new DLA forms very soon after coming out of hospital. The award dropped down to the middle rate care component, but I didn't even think to let the Tax Credits people know at the time because I was still looking after my son post surgery, and I was under a lot of emotional strain. A lot has happened since then (separation, relocation etc) and so I just carried on and renewed my Tax Credits annually over the telephone. My income etc has always stayed roughly the same so renewing was always a very quick process and they just asked if my son was still receiving DLA to which I have always replied yes (because he does), and they never asked wether it was higher rate or not so I never thought about it.

I have recently received a letter from the DLA about payments which has put in in the forefront of my mind, coupled with receiving my Tax Credits forms, I now realise the huge error I have made, and my heart is in my mouth.

It has been an honest mistake and I will tell them about it but I am really worrying about how they will penalise me and how they will make me pay the money back. I am a single mum and only work 20hrs a week self employed because my son has always needed me at home, so can only afford to pay it back in small payments.

I just wondered if anyone has any experience of this, or any tips on how to approach it, as I have heard that they can be brutal when it comes to overpayments, however honest a mistake it was and whatever the situation.

Thanks in advance.
Mandie

My advise would be to phone Tax Credits immediately instead of posting on this forum!