We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Tax credits overpayment who's right please?

Hi Everyone,

Basically I've been on mat leave from work 4/4/11-4/4/12.
My income was actually around 5k for 11/12 & my partners was £17200. (Around 23k total)
We received child tax credits based on the estimated amounts we gave to them but we actually took home £126 more than we estimated when our final figures came through because my oh did quite a bit of overtime.
We knocked all the 39 wks maternity pay allowances off etc & felt sure that a difference £126 over would be disregarded due to the 10k disregard ur it seems not they are now saying they are not giving us the last £300 that was left to pay & we have to repay £229?
I'm flabbergasted...I can't believe a difference of £126 means we lose over £500 when they say they disregard the first 10k.
Am I missing something?

Thanks in advance!

Comments

  • zagfles
    zagfles Posts: 21,686 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    The £10k disregard applies to increases from one tax year to the next. Not to increases over an estimate. But a £126 difference would only result in a a £52 overpayment max.

    You only knock off £100pw maternity pay not the whole lot, that might be the problem?
  • vicxzy
    vicxzy Posts: 273 Forumite
    Thanks for your reply.
    Yes we did £100 pw they wrote to us saying the income difference was £126 so we would lose the £300 they had still to pay & also had to repay £226 :( and additionally we won't get tax credits any more...
  • I would ring them up and ask them to check their figures as something is adrift here.
  • zagfles
    zagfles Posts: 21,686 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    vicxzy wrote: »
    Thanks for your reply.
    Yes we did £100 pw they wrote to us saying the income difference was £126 so we would lose the £300 they had still to pay & also had to repay £226 :( and additionally we won't get tax credits any more...
    What's the "£300 still to pay", is that from last year's claim or this year's? Is the £126 the difference in annual income between estimate and actual?

    There's something wrong here, you'll have to post all the figures from all your awards if you want us to figure out what...
  • vicxzy
    vicxzy Posts: 273 Forumite
    Thanks everyone.
    What they've said is:
    I was on maternity leave 5th April 2011 to 4th April 2012.
    I was only entitled to child tax credits for this period.
    Our difference in estimated & actual for the year 2011-2012 was £126.
    (we received £126 more from our employer than we estimated)
    Therefore they are saying that the £300 ish remainder of the award that they were withholding until our incomes were confirmed will not be paid to us & in addition the payments we received may-July we have to pay back, around £300?
    I've called them countless times it took 4 calls before they took off my maternity allowance 39 weeks @ £100pw= £3900 :(
    Any tips on what I should be saying to them when I call?
    Thanks.
  • zagfles
    zagfles Posts: 21,686 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Like I said you'll have to post all your award figures. £126 income difference can't make a £300 difference in award.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.