Advice about overpaid tax credits

MXW

Is there anyone out there that could help me, maybe someone who works at the tax credit office? If tax credits have been overpaid, is there any circumstance where the tax credit office would insist that the claimant repay the overpayment in a lump sum by means of taking out a loan, we are talking about an amount of £10,000 here.

Thank you

lullable

Was there a partner on the claim that is overpaid? Are you still together? Has the claim been ended? terminated? or is it still live but Tax Credit Office are holding all your money back.

An overpayment on a live claim is treated differently when a claim has ended (perhaps because a couple have seperated - or because a new partner has moved in).

I have yet to encounter a customer being encouraged to take out a loan - this would be frowned upon.

Let me know if you are still entitled & I'll let you know your options.

MXW

lullable wrote: »

Was there a partner on the claim that is overpaid? Are you still together? Has the claim been ended? terminated? or is it still live but Tax Credit Office are holding all your money back.

An overpayment on a live claim is treated differently when a claim has ended (perhaps because a couple have seperated - or because a new partner has moved in).

I have yet to encounter a customer being encouraged to take out a loan - this would be frowned upon.

Let me know if you are still entitled & I'll let you know your options.

My ex is living with his partner who fraudulant claimed ctc and wtc, i know they got a bill for £10,000 in Oct December 2006 (they do not know that I know) in December (for the 3rd time) he has made an application to the courts to reduce the child support for our 2 children, and then without informing me and before the hearing date he has reduced the child support by half and i am getting into serious debt. He has had to produce a statement for court showing his income and expenditure and he has shown that in the last few months he has taken out a loan for £10,000 but hasn't shown what the loan was for. His income is approx £50,000 and his partner is also working and they have also been claiming tax credits...........and have been found out! So in reality they have made to fraudulant claim and I am paying the money back by him reducing my child support. Any advice?

Many thanks

System

I always thought that the CSA's policy re an NRP's priorities is that no matter what their expenditure is tax and children come first so his loan should not have affected your maintenance. He should be paying you 20% of his net income for the children minus 1/7 for every 52 nights per year the children stay over with him.

Re tax credits - if his partner fraudulently claimed tax credits and got landed with a bill of £10,000 then it's her debt not your ex's and so again it should not have affected your maintenance. She would have been given a bill for the whole £10,000 though since they would have terminated her claim but she could have negotiated with them regarding paying it over a long period of time.

I have never heard of anyone being encouraged to take out a loan to repay an overpayment and personally don't see the logic of it because a loan has interest charged on it whilst a negotiated repayment schedule with the TCO does not.

MXW

Pam17 wrote: »

I always thought that the CSA's policy re an NRP's priorities is that no matter what their expenditure is tax and children come first so his loan should not have affected your maintenance. He should be paying you 20% of his net income for the children minus 1/7 for every 52 nights per year the children stay over with him.

Re tax credits - if his partner fraudulently claimed tax credits and got landed with a bill of £10,000 then it's her debt not your ex's and so again it should not have affected your maintenance. She would have been given a bill for the whole £10,000 though since they would have terminated her claim but she could have negotiated with them regarding paying it over a long period of time.

I have never heard of anyone being encouraged to take out a loan to repay an overpayment and personally don't see the logic of it because a loan has interest charged on it whilst a negotiated repayment schedule with the TCO does not.

I agree with what you have said. The problem is that my child support is under a court order, not under the csa. having said that, the debt is still hers and not his, don't know yet who actually has taken out the loan. Thanks for your input, its helpful to know that the tco would organise a repayment schedule, therefore it would not be in their best interests to take out a loan.

TheWaltons_3

Aren't they being penalised for fraudulently claiming?!!

This is not fair on you, why don't you make an application through the CSA?


Then he will be worse off but quite rightly bloody so the way he has fiddled the sytem with his new partner in tow... with the assets they've no doubt required with the overpayments... cars... clothes... jewellery etc... if they did a bit of Ebaying they could afford to pay your maintenance!!

GO TO CSA!!!

MXW

TheWaltons wrote: »

Aren't they being penalised for fraudulently claiming?!!

This is not fair on you, why don't you make an application through the CSA?


Then he will be worse off but quite rightly bloody so the way he has fiddled the sytem with his new partner in tow... with the assets they've no doubt required with the overpayments... cars... clothes... jewellery etc... if they did a bit of Ebaying they could afford to pay your maintenance!!

GO TO CSA!!!

Normally i would agree with you, but I have just received his detailed statement of earnings and he has reduced his earnings down to £ 25,000 which is the very basic he can earn and is paying a pension of £2,400 per annum, he knows every trick in the book! His statement has so many holes in it, it's like a fishing net, reckons they are in the red to the tune of £350 per month and that's without money being withdrawn from their accounts to live on, social events/hols etc................despite the fact that he is out boozing every weekend! Am seeing a solicitor on Monday!

MXW

ps He went on holiday abroad yesterday!!!!:mad:

TheWaltons_3

Yeah the pension thing is a loophole right now... they up their pension contributions (they don't get their hands on this cash right away though) through their employer, thus bringing their income down and you getting less money.

They benefit from a bigger pension, cutting their nose off to spite their face at the present time, just to keep you from getting more also.

Perhaps you could report this?

MXW

TheWaltons wrote: »

Yeah the pension thing is a loophole right now... they up their pension contributions (they don't get their hands on this cash right away though) through their employer, thus bringing their income down and you getting less money.

They benefit from a bigger pension, cutting their nose off to spite their face at the present time, just to keep you from getting more also.

Perhaps you could report this?

Yes, all this will be brought up in court! I'm determined he won't get away with it! His mortgage and loans alone are just under £1,000 per month, which he has taken out knowing that he has got child support to pay, all he thinks is..............i'll just lower the child support to fund my extravagant lifestyle!!:mad:

finlaybaby

I can't believe how greedy some people can be. Do people who are claiming fraudulently have to pay a penalty fine??