Tax Credit Repayment & New Claim

k-man

Hi,

Myself & my wife have a tax credit overpayment of around £6k which we are paying back.

If we (she) starts claiming once again (due to a change in circumstances) would they take the full amount she is entitled to each week until fully repaid, or would they just take the repayment amount off the entitlement?


Thanks

K

k-man

Brilliant,

Thank you

K

Icequeen99

Just to add later in the year HMRC will start cross-recovering claims, which means they will collect overpayments from old claims (that have ended) from new claims.

IQ

zagfles

This can get a bit messy. If you're in the process of paying back an overpayment and your previous claim wasn't closed (a nil award) but then you become entitled again, they seem to still collect the overpayments as originally scheduled and adjust your award every time they collect!

I think the overpayments are reclaimed by the debt management office of HMRC who don't talk to tax credits, they just take what their told to.