I owe tax credits

takingcontrolatlast

Hi, I posted my Q on wrong board and dont know how to copy it to here but basically a few years ago we were told we were overpaid for 2 years but to this day im still confused why when i updated them everytime OH was unemployed or employed! Anyway, we owe them. I did challenge it btw.

I set up dd and as it was long ago i cant remember whether i missed or cancelled the dd. I spoke with them and they wanted £300 at the time and then I got them down to £75 a month. He made me do income and exp on phone and i just estimated and he said i had all this money left over so they can ask for £300 - i never did have that money left over !

I got into difficulty again and never paid and when i spoke to them again the lovely lady set up another dd but to this day nothing has ever gone out of my bank account and i havent been chased for it. Now i know i have to pay it back but not sure what is best way forward.. leave till they chase me as i want to concentrate on other debts first ie paying family back and loan. They havent taken anything for about 2 years now. Should i let sleeping dogs lie?

Cheeky_Monkey

takingcontrolatlast wrote: »

Should i let sleeping dogs lie?

No you shouldn't!

The longer you leave it, the worse it will get.

I would have thought that it should take priority over paying back family

takingcontrolatlast

thanks CM: i think its been easy for me to ignore it which sadly i have been doing

i do feel in a dilemma about paying family back and i still aim to do that this year. But i agree with you it is a priority debt that needs sorting now.

Do you think i should contact tax credits direct or my bank to ask why no money is going out?

takingcontrolatlast

thks BB:

Does anyone know how tax credits work out the repayments?

antonic

You need to work out a budget, and if you can afford to offer a reasonable amount to repay the debt and stick to it, ring them up and make them an offer of repayment.

In all probability they will accept it, because it is money being repaid that they werent getting previously.

They *may* ask you to pay by Direct Debit as well.

midnight_express

How much you owe ?

Toomuchdebt

I repaid mine at £10 a week. I did an income and expenditure with them too but made sure I had all the figures in front of me when I called them.I had an overpayment from when my ex moved out -I rang them straight away but I had 2 extra weeks payments before they processed it and they didn't tell me until a year later that it was an overpayment.

takingcontrolatlast

Anatomic: thank you - i plan on doing a budget this weekend, however, previously ive been basing my debts here separate from my OH but with tax credits i know i will have to do a joint SOA when i ring them as last time i rang and had nothing in front of me so wasnt prepared.

Midnight Express: The last paperwork i can find says £2706.19 which should have had a payment of £150.34 on 28.01.14 followed by £75.17 monthly.

Toomuchdebt: Its awful isnt it -i just dont understand how they work it out and why take so long to tell you ! what a government !

TBH im frightened they are going to ask for more than £75 a month as I have increased my working hours over the last 2 years which is why im wondering whether its best to contact the bank first to see if the dd can just start. I havent had tax credits for 2 years now btw.

Cka

There is a website called tax credit casualties. They helped me when they claimed I owed them £3000 they helped me argue my case and some helpful members even drafted letters for me. After one of them got my mp involved I never heard a thing more.. this was 7 years ago.
if your sure you told them of any changes this may well be an avenue to explore... got nothing to loose....

takingcontrolatlast

Cka: thank you for the advice - i did appeal but lost - ive got to pay it back. On a positive note at least its a debt im addressing and moving forward with my goals to be debt free at some time in my life. best wishes.