TC overpayment

chocolatepickle

So I finalised 12/13 tax credit award last year nd thought nothing of it.
Today I receive a letter telling us there is a discrepancy between the figures I gave and those on our tax returns so I would need to make contact to address this.
Looking through the details I called them having found the issue. In short, it turns out the figure I gave them was the figure after tax when in actual fact what they wanted was before tax.
When giving the numbers on the phone I always ask which figure they want- before or after so Im sure that i would have done so on this occasion so suspect I have been told wrong hence giving the wrong one.

The difference is £4000 and we already have an overpayment from a previous year (around £2000) being repayed.

Now Im worried as £4000 is a big difference in income (increases household income to £20,000 instead of £16,000 the award was based on). Im worried we will be totally skint now.
Does anyone know how much we will loose from this award- would they stop it completely so late in they year?

I've also requested information under Data protection from them hoping recorded phone calls will be there to clarify if I was told by them to give the wrong figure, if this is clarified will I be able to dispute paying back?

Thanks

JimmyTheWig

As blondebubbles says the difference made will depend on other years' household income as you are allowed a certain increase before it affects anything.
But worst case scenario is that the whole thing will count against you and you will have been overpaid by 41% of £4000, which is £1,640.

chocolatepickle

Thankyou both for your response, no its not my first year, I could be wrong but I get in a real muddle with numbers- (as we are both self employed), one person wants one figure, another wants another so I always end up asking what one they want. I remember someone being hesitant on the phone on one occasion- i always offer both so I cant see why else I'd give the wrong one. but of course your right, I could well have just made a pigs ear out of it!

i cant remember offhand but I think our household 11-12 was in the region of £15-16k as I was at a loss in my business as a first year, 13/14 i expect around the same as last year due to investment so 20k roughly.

I feel so much better already jimmyThewig (great name!) thanks for that, i was imagining in a panic a flat out £4000 overpayment! £1640 makes me feel much less sick!

chocolatepickle

I'l take a look, thanks so much you've both really put my mind at ease a bit even if it comes out as worst case. :beer: