Tax credits massive overpayment help

Hollysmummy24

Got my award letter today.Payments have been stopped and allegedly we have been overpaid by 4500 k :eek:

I rang them today to ask how this conclusion was arrived at and they said something like their last income off us was 16.5k for the year. Which is rubbish as last year I rang and gave figures, my income was 23k alone, DHs was about 12k self employed profit.

I didnt really think about it at the time but it seems they have lost/disregarded last years income as if they meant the increase was from the 2011 tax year after the 2010 one (our income was 16k that tax year as I started working in October as did DH as hed been on the sick so that 16k was from October 2010 til April 2011 for us both) then surely our tax credits would have been reduced the year after (for the year april 11-12)??

I think they have really cocked up but wont admit it, ive no idea where to start, its a staggering amount to owe and we cannot pay it back anytime soon.

Has anyone ever been through similar and resolved the issue somehow?

princessdon

What did your forms say when they arrived?

What income are on those forms that you are asked to check and notify if incorrect?

Icequeen99

princessdon wrote: »

What did your forms say when they arrived?

What income are on those forms that you are asked to check and notify if incorrect?

As Princessdon says, as far as disputing an overpayment goes it really doesn't matter if HMRC make a mistake, it is the claimant's responsibility to check the notices that are issued and then tell HMRC if it is wrong.

If you did that, then you can dispute and the overpayment will be written off. If you failed to check the award notices, and they have the wrong income on them, then you will have to repay it.

IQ

System

What years are you talking about?
Was the 2010/2011 income 16.5K and the 2011/2012 income 23K + 12K self-employed profit?

If so then it would be normal for the money paid between April 2011 and April 2012 to be based on the 10/11 income of 16.5K but the award notice would have asked you to let them know if you thought you would actually receive more than that. A 18.5K increase in income is outside the 10K disregard.

Check your award notices to see what income your payments last year were based on.