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Tax Credits

Hi everyone,

I claimed WTC up until August last year. I worked, and still do, part time 20hs per week. I did not renew my claim last year as I started doing a bit of ironing for people in my own home to earn extra money on top of my wages.

As I was doing this I did not think I would be entitled to WTC anymore.

I then received a letter from them demanding that I pay back £3000 as I had been overpayed.

I now only work my 20hrs pe week and finding it very hard to make ends meet, but afraid to apply for WTC again as I cannot afford to pay back £3000.

I am a single parent of 2 boys and don't know what to do.

Comments

  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It sounds like you received an overpayment because you didn't finalise the claim at the end of the year and they deemed the claim to be void and then they claimed the money back.

    There shouldn't be a problem with opening a new claim as long as you ensure that they are kept uptodate of all your details and the renewal forms are returned on time.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • KerryM_3
    KerryM_3 Posts: 25 Forumite
    Thanks for your reply CIS.

    This has been worrying me for months, been needing to apply but scared to do so. I am now finding myself getting deeper in debt trying to struggle on my wages.

    Will give them a call and see if I can apply again.

    Thanks again

    Kerry
  • System
    System Posts: 178,429 Community Admin
    10,000 Posts Photogenic Name Dropper
    By not completing the renewal form you failed to finalise the previous years details so they terminated your claim and have asked you to pay all the money they sent you from 6 April until 31 August. It is very unlikely they will waive the overpayment but you may be able to negotiate with regard to monthly repayments.

    If you reapply they may backdate your new claim 3 months but they can't recover the overpayment from that claim because it is a completely different claim.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
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