Tax credits massive overpayment

goldenbutton121284

Hello!

I'm hoping someone could please give me any advice on the following situation.

I split up with my partner on the 8th August 2014, I then started a single claim. I have just received a final decision for the period of 06/04/2014 to 08/08/2014 which has generated a massive overpayment of £2659!!!!!!!!

I then looked at the income details and what they have done is they have took into account my ex partners whole year earnings from the 6th April 2014 to the 5th of April 2015, which was over 26k!

Now my argument is why have they taken all that years income into consideration when that claim ended in August 2014? I only saw 4 months of that salary and since we split my ex partner hasnt received any tax credits, so in theory I am being penalised for his earnings for the whole of that year when I wasnt even with him.

I have rang tax credits several times to be told this is how it works out, it is all correct, but how is this correct?

I am going to put my thoughts down in writing, but if you have any advice or previous experience with a similar situation, please reply to this thread because I just cant get my head round this at all.

Paula

Caz3121

Tax credits work on annual income across the tax year and not month by month
My understanding is that when they were closing your claim they would look at it in 2 parts
April to August
Ex's income for the year + your income for the year results in an award figure for the entire year - call it Award A
then your income for the whole year would also be used to calculate what your award would be on a single claim - award B
1/3rd of award A would be the amount due for the joint award and 2/3 of award B for the single claim

eg (sample using 3 children and no childcare and this years numbers for ease)
your income £10k, Ex income £25k
annual joint award would be £1,960 = £653 payable (to Aug)
single award for year would be £12,210 = £8,140 payable (from Aug)

If the overpayment is from the joint claim I believe 50% of it is assigned to each of you

Unless they have used your partners income for calculation of the single claim I believe using his whole income to finalise the joint award is correct