Tax credits overpayment

strawberryblonde

Hi All

I have been repaying a large tax credits overpayment by deductions from my weekly tax credits. However, due to the fact that my eldest daughter is no longer in FTE and I have just got a job, I will no longer get any tax credits.
Looking at the HMRC website, it looks like we have to either pay it all back in one go or spread the cost monthly either by DD or through PAYE.
If this is the case, they will want about £240 per month from me which we just wont be able to afford.
Has anyone else had experience of this and is there any way we can spread the cost over a longer period of time.

:eek:

KILL_BILL

how much do you owe

i think the max amount that they can spread it out over is 12 months

strawberryblonde

I estimate that we owe them about £2890.
Having just looked on another site, we can ask for longer to repay so I will try that first I think.

dktreesea

When exactly did your daughter leave school? Is it just now, in June/July?

How old is your daughter? (relevant, because if she isn't working, she won't be able to claim the dole until she is 18, so continuing on with education from a persepective of (you)qualifying for things like tax credits/child benefit so she can support herself within your family in your family matters). Did she register with Connexions (or careers Scotland if in Scotland) once she left school? if yes then there should be a 20 week run on for tax credits. But you need to contact them. And make sure you also contact the child benefit office, because otherwise they will only run on the benefit for 3 months after she has left school.

molly22

im repaying about the same amount and it will take me about 6 yrs!

georgiasdragons

Im repaying 1900 at 190 a month the quicker its paid the better so ten months of being even more skint!

Johnny.99

You won't need to pay it back within a year. It really comes down to how much you can afford to pay each month/week. So don't let yourself be bullied into paying something that you will struggle to maintain. However, based on the amount of £2890 that you mentioned, if you were to pay under £24/mth you'd need to provide all your household income and outgoings for an income and expenditure check.

Has your Tax Credit award already ended? And, if so, have you received any letter yet telling you that the overpayment still exists, and how much is still outstanding? If so, call the number on the letter and talk to someone about it.

If not, and you want to be proactive about dealing with it, rather than waiting for HMRC to get in touch with you, I'd give them a call and establish just how much is still outstanding on the overpayment.