Tax Credits Overpayment

ianpwilliams

I was receiving a small Working Tax Credit payment (around £7/week), which stopped not so long ago, so I assumed that I wasn't eligible any more (I earn £17k/year which I assumed was too much to continue to qualify).

Now I've got a letter saying that it is predicted that I will owe them £401 in overpayment, and letter says that I don't need to tell them about any changes, except that there is one bit I'm not sure about. It says "is your total income for 2014-2015 likely to be less than £10614"?. At £17k/year it would definitely not be under that, but my contract is fixed-term, and it ends in September. The contract might be extended, and if not, I might still find another job by then, but worst-case scenario I would be unemployed, and therefore I would earn less than £10614 (roughly half of £17k).

So how does that work when it comes to the overpayment? If I was to pay the £401 back now, and then I became unemployed in September, would I have paid back an overpayment that I shouldn't have been due to pay back?

And while I'm here, does anyone else think it's a bit ridiculous that although we constantly give them up-to-date information, the HMRC often still pay too much money to people without a care in the world, and then demand it back, rather than just paying what it due and leaving it at that?

Incidentally I have tried ringing the HMRC, but I can't get through to anyone.

ianpwilliams

My 13-14 income was around £14k up April 2013, then £17k from April 2013 onwards. That's why I think the Working tax Credit when down, because of the pay increase, but I think it still continued because in the tax year 2012-2013 I was a student and/or unemployed, which is why I think the Tax Credits carried on for a bit

ianpwilliams

They are saying that the overpayment is for the year 2013-2014.

As for when I told them, I'm sure I told them straight away about the change.

ianpwilliams

Thanks, I'll give them a ring and see what it's all about.

I still find it very disappointing that the HMRC can overpay people so easily, and then demand the money back. I'm lucky in that I can afford to pay it back (although it makes an unplanned rather serious dent in my savings), but there are vulnerable people out there who can't afford to pay it back, and it's not their fault.

essex_girl

could somebody give me a link to a template letter to dispute a tax credit overpayment please. Cannot seem to find it. thanks in advance.