Tax Credit Overpayment HELP!!!!!

Thirsty1976

Hope someone can help as I am tearing my hair out with stress

Back on 10th June 2011 I had my final tax credits decision for 10/11, all fine, they said they had miscalculated and made a payment of £650.

THEN! On 1st June 2012 they sent a provisional tax credits statement for 11/12. On the last page it says Overpayment up to 5th April 2011 £1273.01 and from this award period £549.01 and that they have already collected back nearly £200 but our amounts will decrease so they can recover the rest.
I called and spoke to a chap who kept me on hold for 30 minutes before telling me he couldn't help as there had been too many changes to the claim. (My daughter starting school, changing from nursery to childminders etc)
And I was advised to fill in a TC846 request to reconsider recovery of overpayment.
So I did, sent it off etc
Today I have received another letter dated 24.07.12 headed final tax credits decision for 11/12 saying now alongside the £1273.01 we owe up to April 11 we also owe £707.71 totaling £1980.72 and payments are going down again to cover.
I can't get any sense on the helpline, have been on hold for over an hour etc can anyone advise further please. I really genuinely think this is wrong. Whenever we have a change of wages/childcare etc I call them straight away so they always have correct info so how has this happened???
Like most families we live hand to mouth and reduction of tax credits even by £10 a week let alone £40 is going to cripple us.
Thanks in advance for any help x

Icequeen99

Does the final award notice for 10/11 mention overapayments anywhere on it (possibly carried forward from earlier years?)

IQ

Thirsty1976

No IceQueen nothing, in fact in the summary of payments section it states £650.51 was still to be paid??

Icequeen99

HMRC have a duty to notify you of an overpayment. I suspect the overpayment is from an earlier year (i.e. before 10/11). That said, it should have shown on your final 10/11 even if it had been from an earlier year. I would suggest first that you contact the helpline and ask them to confirm which years show overpayments (ask them to look at all years since you claimed). Ask them for the original amounts and then the amounts still due for each one.

With overpayments, the TC846 dispute process is normally the right thing to do if the overpayment is correct (i.e. you have received more than your entitlement).

Difficult for anyone here to give you a full answer. I would suggest you continue with the dispute and see what reason HMRC give for the overpayment.

IQ

downsizer3

Obviously I can't comment on the specifics but having been in the position of being overpaid by quite a bit (self employed and fluctuating workload make it hard to assess future income) I was pretty stressed out.
If you do owe money - try not to panic as they are very reasonable in coming to a repayment agreement - even if its over a long period. No interest is charged either.
Sorry I can't be more help but rest assured - once you've sorted out what you owe - if anything - they do help you to pay it back without crippling you, or being judgemental.