Worried i have been overpaid on CTC!!!

misswig

Hi

Just a quick one

I'm really worried that i am being overpaid for my CTC and before you comment, i have phoned them several times to double check but also know that many many people have been overpaid through no fault of theirs and now have huge bills to pay.

My circumstanes are as follows:- i'm a single parent of a 3 year old. From Oct 06 i started a new job full time with a salary of £26000, previously to that i was a single mum working 30 hours with a salary of £16000.

Up until April 07 i was recieving £597 per month TC (child care element only). I filled in the TC review return in May 07 with my P60 earnings for 06/07 of £17,500 and recieved a new TC award statement through stating monthly award would be £597 still for the year 07/08. and as from April 08 my TC would reduce to £388 per month

When i started my new job in Oct 06, i informed the TC people of a change in circumstance ie my new salary and was assured that my award was correct and that the present years TC was based on last years earnings.

I again contacted them in May 07 when i recieved my new award to enquire whether it was correct given that i had declared mnew earningsa and was told the same thing

My TC award pays for 80% of my childcare and without it i wouldn't be able to work. I am aware of the decrease next year am prepared for it. My fear is that my TC will be reduced and i end up with a massive bill from overpayment which i will not be able to afford on top a reduction in TC.

i recieve no other income such as maintainence etc

Am i worryign unnecessarily? I would rather budget now with a reduction then be hit for a bill plus a reduction next yuear!

Thanks

Vicky

angela110660

Having had 3 phone calls today with them about previous overpayments and how to repay them I would do what the last guy I spoke to suggested to me. He said that IF any more payments were to come into our bank (even though I have been told there will not be any) then the best thing to do would be to save them somewhere else. Then when the paperwork comes in next year, you have the money ready to pay it all back to them!! Sounds mad but it makes sense. We have had to agree a direct debit payment with them now for money they have paid against previous overpayment - which should not have been paid because we earned too much in the year. Yes I am very confused too but that's our situation. They won't cancel our award paperwork now that we are in the system though.

Gaz83

As a former TC advisor, I would always advise someone to, wherever possible, budget WITHOUT tax credits, and treat any received as a bonus.

That way, when a future government gets rid of them (inevitable in my and many others' opinions) you won't be dependent on them.

misswig

Gaz83 wrote: »

As a former TC advisor, I would always advise someone to, wherever possible, budget WITHOUT tax credits, and treat any received as a bonus.

That way, when a future government gets rid of them (inevitable in my and many others' opinions) you won't be dependent on them.

Thanks Gaz83

I am currently budgeting down to the bone. I didn't have a winter coat for the first half of last winter as my son needed a decent one and shoes at the same time!!

I am aware that i am actually a lot better of than a lot of people in my situation (before anyone starts having a go) and i save as much as i can each month but then the next month there is a big outlay like the car tax or the vets bill. :eek:

hotblu

Hello,

Based on what you have said your award sounds about right. The reason your still going to get £597 p/m this year is because your cy award is still based on py income, even if you tell them your going to be earning £26,500. This is because you get a £25,000 income disregard on your income for this year. Next year, your award will be based on this years earnings, because that will be the full £26,500 thats why your payments will reduce. Hope that isn't too confusing.

HTH

Hotblu

Ps, Advisors probably dont spend enought time explaining things properley because the powers that be are constantly on their backs about their stats... guess it isn't quality after all.

misswig

hotblu wrote: »

Hello,

Based on what you have said your award sounds about right. The reason your still going to get £597 p/m this year is because your cy award is still based on py income, even if you tell them your going to be earning £26,500. This is because you get a £25,000 income disregard on your income for this year. Next year, your award will be based on this years earnings, because that will be the full £26,500 thats why your payments will reduce. Hope that isn't too confusing.

HTH

Hotblu

Ps, Advisors probably dont spend enought time explaining things properley because the powers that be are constantly on their backs about their stats... guess it isn't quality after all.

Thanks Hotblu

That it was the advisors told me but it just seems wrong somehow that i am earning a good wage and still entitled to that amount of CTC (not that i see it though, it goes straight to my DS nursery!!)

hotblu

misswig wrote: »

Thanks Hotblu

That it was the advisors told me but it just seems wrong somehow that i am earning a good wage and still entitled to that amount of CTC (not that i see it though, it goes straight to my DS nursery!!)

That's the goverment for you... one big cover up. By giving TC applicants a £25,000 threshold for last year & this year it has drastically reduced income related o/p's and therefore the stats will show the system works.