Overpaid tax credits-asked them to stop paying but they say they can't!

bubblegumcola

Hi, is anyone else in this situation. We were overpaid for this tax year, which I only realised would be the case when I phoned to renew once I realised my hubby's income had gone up from previous year.(he's self employed) they sent out a new award notice saying we were owe them around 700 quid, but they would continue paying us about 50 quid a month so by the next year we would be owe them even more. They said they would pay the smaller amount so we do not have any hardship problems. I phoned them and asked them to stop the payments until we didn't owe them any money and just to start paying us what they owed us which would probably be the next tax year, so they said it would be passed to another department to action. I didn't want to owe them any more money than I have to and am more than capable of budgeting to allow for the amount I was getting. So now I have a letter in the post today to say they are not allowed to stop my tax credits by law and they will continue to pay me a small amount every month in the meantime...they haven't said how much but say a new awards notice will be sent out in due course. So they will be putting more debt onto the amount I am owe them!

Why can't they just stop it, it's my mistake for underestimating how much hubby was going to earn this year. I don't want to owe them more than I have to? Anyone else had this?? Thanks.

lovinituk

bubblegumcola wrote: »

and am more than capable of budgeting to allow for the amount I was getting.

So put the extra money in a saving account, pay it back when they ask for it and keep the interest it earns!!

judy2357

Just come across this and am by all means not an expert but due to being on WTC myself have a little knowledge. Could you not over estimate what you will earn this year, not really lying as presumably someone that is self employed doesnt actually know what they will earn. They will then pay you less, although I guess the percentage you pay back will be a little less but hopefully at the end of the year they will have underpaid you.

bubblegumcola

You have a point lovinituk...I hadn't though of stashing it away...I do have a savings account with very little in it. I'm just waiting on the new award notice coming in to say what they will still pay me, I would rather it was as little as possible tbh.

I can certainly over guesstimate what hubby will earn as self employed this year. We have not been in this position before, always knew pretty much roughly what dh would earn over the course of a year, then a few years back his income plummeted by so much we were owed thousands from them. They withheld extra payment (quite rightly) until the end of the tax year til we had a final figure of earnings for him and then we eventually got it in a lump sum, was a struggle but we knew the money would eventually be paid. The thing is I know Ive been overpaid, why can't they just stop payment? If I had the 700 quid I owed for overpayment I would pay them but I haven't, they seem happy to take it off the rest of this year and some of next year but then carry on paying me...!?

Looks like best thing all round is if I put it away for now whatever they decide to pay me. Thanks for your advice.