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Working Tax Credits Overpayment Help

Hi


I have just received my tax credits award notice and was surprised to find that I have been asked to repay £1200.


My income for 12/13 was under £7000 so I applied for working tax credits in April 2013 whilst I was employed on a temporary contract earning the minimum wage.


In October 2013 I found a permanent job earning £18000 and phoned HMRC immediately to inform them. As expected, I stopped receiving tax credits but didn’t expect to have to repay what I had already received (£1220).


I cannot afford to make the repayments and am going to ask HMRC to cancel/suspend the debt.


Has anyone else been through this process? Is there any advice on making a successful appeal?


Thank you

Comments

  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    BB is right. You can't appeal and you although you could dispute you won't be successful because this is a 'natural' overpayment caused by the system design rather than a mistake by HMRC.

    You can ask to repay a small amount each month or if you are in financial hardship suspend it until you can afford to offer something

    IQ
  • CMFP
    CMFP Posts: 13 Forumite
    edited 12 June 2014 at 10:39PM
    Thanks for your help.


    Is there any possibility they will reduce the debt?


    What is the next step in the repayment process? Will HMRC contact me again to initiate repayment?


    Is interest added?
  • CMFP
    CMFP Posts: 13 Forumite
    I thought the debt may be reduced as my income is still relatively low.


    I will wait for their correspondence and arrange repayment options.


    Thanks for your help
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