Tax Credits Renewal -Overpayment

ajd2909

Hi, I need some info on letter received today claiming I've been overpaid £8300 in tax credits over 2012-13.

In 2011-12 my income was £3750.00 due to unemployment but I started work in Feb 2012 and informed the Tax Credits Helpline of this in March 2012 and my income increase of £30,000. The tax award for 6/4/12 to 5/4/12 still had income based up 2011-12 figure of £3750.00.

The award for 6/4/12 to 5/4/14 has come through today with the correct income as per my P60. I can't understand why the £30k figure given in March 2012 was never recorded or used. I've spoken to the helpline this evening who haven't helped and have said that they have on record the date of my call in March 2012, but no info on what was discussed.

Has anyone any experience on this as to what to do next. There is no way I can afford to pay back to overpayment, and maybe I should have queried the 2012-13 award, but this is worrying me and my partner.

Thanks in anticipation.

Horseunderwater

What you should have done at the time was ring and give another revised estimate of income after 5th April 2012 and that would have corrected the situation. They would have disregarded the 1st £10k I think it was for that year so your award may have been based on an income of £16250 approximately but others will confirm that better than me.

Icequeen99

HUW is right.

Basically because you told them in March 2012, that would have only been recorded for the 11/12 year (that you worked Feb - April). When the next claim started on 6 April 2012 for the 12/13 year, it would have automatically defaulted to 11/12 income.

You needed to tell them again after 6 April 2012 that you estimated your 12/13 income to be £30,000.

Unfortunately, I suspect the award notice you got after 6 April 2012 setting out your 11/12 award will have said something like your award is based on X income - tell us if your income goes above XXXX (some figure will have been entered probably 13,750).

As HUW says, there is a 10,000 disregard, but that will only help part of it. They would treat your income as 20,000 if it was actually 30,000

I am surprised the overpayment is as much as that considering that you would have some entitlement. Do you have a lot of children or childcare costs?

In terms of what you can do - if you are still getting tax credits they will take back some money against the overpayment from your ongoing payments. If you're not you will need to set up a payment plan to repay monthly based on what you can afford.

IQ

ajd2909

HUW, Icequeen,

Thanks for your replies and valuable information. I have received the demand for overpayment yesterday which totals £7016, not £8300 as previously demanded. When I told them in March 2012 of my change in circumstances I was advised that my new income would be taken into account from April 6th.

At present we are getting no tax credit payment as my income is above the theshold so there is no offset available. Also the £7016 for 2012/13 was for 1 child aged 9 with no childcare costs. Is this figure correct?

I am obviously going to dispute the demand and try to agree a payment plan, but any ideas feedback from users here gratefully received.

Cheers,

AJD

Icequeen99

ajd2909 wrote: »

HUW, Icequeen,

Thanks for your replies and valuable information. I have received the demand for overpayment yesterday which totals £7016, not £8300 as previously demanded. When I told them in March 2012 of my change in circumstances I was advised that my new income would be taken into account from April 6th.

At present we are getting no tax credit payment as my income is above the theshold so there is no offset available. Also the £7016 for 2012/13 was for 1 child aged 9 with no childcare costs. Is this figure correct?

I am obviously going to dispute the demand and try to agree a payment plan, but any ideas feedback from users here gratefully received.

Cheers,

AJD

I think it is worth disputing on the grounds of wrong advice, but I wouldn't build your hopes up. Even if they did give you wrong advice, the claimant has a responsibility to check every notice, so the ones you got after 6 April 12 would have shown the recorded incomes and asked to let them know if your 12/13 was above a certain amount.

So you might get it reduced a little, but i think the sticking point will be your failure to check the later notices.

IQ