i underestimated tax credits by £1800

vicki_b

hi i've got tax credits renewal forms sat here waiting for me to ring up and give my partners actual wages....but i underestimated it by £1800!!!:(
will this be a straight overpayment of 1800 and how much roughly would i have to pay back?
does anyone know if they stop your payments all together whilst they are working the decision out?i was going to ring TC when we got our last monthly pay(29th may), but all the pay had gone within a day on bills/rent etc and we rely on the tax credits to live on...

zagfles

It will be a maximum of 41% of the amount you underestimated ie £738, but it might be nothing depending on circumstances, eg you might be in the disregard.

For instance if 2010/11 income was £20,000 and you estimated £25,000 but actually earned £27,000 there won't be any overpayment last year (though there will be a small overpayment since April this year).