Possible Over Payment Can Anybody Clarify?

DRFielding64

I am currently covering for my manager who is on sick leave and am to receive an Honorarium of £440 per month for carrying out these extra duties.

So effectively I am now receiving a Tax Credit overpaid for the year 2012/13; however I have read that Tax Credit will not take any pay rise into account up to £10,000 in that year; but what does this mean in practice; by next year 2013/14 my manager will be back and my salary will revert to the lower amount:


So are they saying that if I earn an extra couple of thousand in this tax year, but it’s a one off, I will not be penalised next year.


Would be grateful is anybody could clarify?


Thanks

tomo2

I've been in dispute with the TCO for 6years. I would recommend you tell them of any change in circumstance as soon as possible. Tell them everything, every time anything changes!! This way, if they make an overpayment they are responsible.

McKneff

tomo2 wrote: »

I've been in dispute with the TCO for 6years. I would recommend you tell them of any change in circumstance as soon as possible. Tell them everything, every time anything changes!! This way, if they make an overpayment they are responsible.

##

Ha Ha, even if they made a mistake and they were responsible, and overpayment would still have to be paid back I'm afraid.

But as said, tell them of any change as soon as possible.

zagfles

DRFielding64 wrote: »

I am currently covering for my manager who is on sick leave and am to receive an Honorarium of £440 per month for carrying out these extra duties.

So effectively I am now receiving a Tax Credit overpaid for the year 2012/13; however I have read that Tax Credit will not take any pay rise into account up to £10,000 in that year; but what does this mean in practice; by next year 2013/14 my manager will be back and my salary will revert to the lower amount:


So are they saying that if I earn an extra couple of thousand in this tax year, but it’s a one off, I will not be penalised next year.


Would be grateful is anybody could clarify?


Thanks

The first £10k increase over last year is ignored, so your tax credits won't go down this tax year.

But they will go down next tax year, even if your salary drops to its previous level, because there's also a disregard for income falls of £2500.

You should tell them so they get the run-on payments from April right, but if you're not yet certain how much you'll earn it may be best to wait till March when you'll have a better idea.

tomo2

McKneff wrote: »

##

Ha Ha, even if they made a mistake and they were responsible, and overpayment would still have to be paid back I'm afraid.

But as said, tell them of any change as soon as possible.

This is not what their COP26 states? Please could you explain-thanks

McKneff

Post a link to the COP26 and I will apologise if I am mistaken.

plum2002

http://www.hmrc.gov.uk/leaflets/cop26.pdf it's at the bottom of page 5, McKneff this isn't because i want to see you apologise to the other poster- I thought you were right!!

Although you'll note that a TC recipient has only a short period in which to let them know, if left it could be argued that the recipient has not fulfilled their responsibilities.

tomo2

McKneff wrote: »

Post a link to the COP26 and I will apologise if I am mistaken.

Here you go. They state: If we fail to meet our responsibilities, but you meet all of yours, we won’t ask you to pay back all of an overpayment caused by our failure.

I have personal experience of them writing off an overpayment caused by their error.

zagfles

tomo2 wrote: »

Here you go. They state: If we fail to meet our responsibilities, but you meet all of yours, we won’t ask you to pay back all of an overpayment caused by our failure.

I have personal experience of them writing off an overpayment caused by their error.

Couple of things to bear in mind though.

Firstly, just because you tell them everything straight away does not mean you can't have an overpayment, you can, even if they get everything right and act immediately. You can still end with an overpayment through nobody's fault (except perhaps the designers of the system, try getting them to pay :rotfl:)

Secondly, if you give them information and they get it wrong and send out an award notice with different information, if you don't check it (as they ask you to) and notify them of the mistake, then they'll deem that your fault.

tomo2

zagfles wrote: »

Couple of things to bear in mind though.

Firstly, just because you tell them everything straight away does not mean you can't have an overpayment, you can, even if they get everything right and act immediately. You can still end with an overpayment through nobody's fault (except perhaps the designers of the system, try getting them to pay :rotfl:)

Secondly, if you give them information and they get it wrong and send out an award notice with different information, if you don't check it (as they ask you to) and notify them of the mistake, then they'll deem that your fault.

Very true; you need to be honest, quick and eagle-eyed!! Expect errors in award notices and report them yesterday. Oh, to get 5 mins with the 'designers' of the 'system'...:)

McKneff

It's a sad state though when the most vulnerable people don't understand all the gobbledygook that are on some of these forms.

And sometimes the most intelligent too I might add.


And by the way, my apologies :D