Overpaid child tax credit but no change in circumstance?

LucyElizabeth_2

Our income has stayed the same from last year (£30500 joint income) but the tax credits we are entitled to this year have dramatically reduced meaning now we owe quite a bit back.

As nothing has changed in our circumstance or income, how come the tax credit has been so reduced this year and if its due to changes in entitlement at hmrc's end, why didn't they make the changes when they went into effect instead of overpaying us?

Can I appeal this as there was nothing I could have done?

Horseunderwater

If you have last years award notice - compare it to the latest one and see of there are any obvious difference in them. There may be a mistake - you never know. If there is, then you need to ring them up and query it. You have 30 days to do so.

LucyElizabeth_2

I've tried ringing them, can't get through at the moment.

My hours have changed slightly, I work 20 hours now rather than 10 last year but we're both self employed and out income is exactly the same as last year?

pmlindyloo

Have you got a child who has reached the age of 16yrs?

Kayalana99

It might be to do with the fact your working over 16 hours(as this would entitle you to working tax credits and childcare help if im correct)...but if you have gone from 10 to 20 hours and are still actally earning the same I would think this would work out better for you....

Strange.

LucyElizabeth_2

Children are 5 and 1 so not due to that.

There's no working tax credit due but that hasn't changed, it's the child tax credit that has gone right down.

I can't see what I have changed for this to happen

pmlindyloo

All you can do is check the two award letters and compare the. Read them very carefully and see if anything is different.

If nothing is wrong then you will have to telephone them.

LucyElizabeth_2

The only difference is my hours.

I'll keep trying to get through on the phone, they must be busy this time of year.

I wouldn't mind if it wasn't such a huge reduction and the fact I now owe them when our income hasn't gone up.

Such a complicated system to understand.

Thank you for your help everyone x

LucyElizabeth_2

And by big difference I mean we were getting £95 a week and that has gone down to £11!

I was so pleased with myself getting on top of everything and also getting a ppi refund from egg too!

Pedent

You said your income last year was £30500. Was that a big increase on the previous year?

davehughes182

the only other thing it might be based on the details you have provided is that last years award was based on a lower income estimate than the 30500 you mentioned. Make sure the income on both last years and this years award are the same. If they are, then persevere (sic) and call them to discuss it.

HTH