Tax Credits Screw Up

Steevi93

Hi Everyone. I am at my wits end here with tax credits.


We underpaid them last year due to a change in circumstance which we had forgotten to tell them about. This is fair enough and we've taken a cut in tax credits as a result.


The year before, they advised us that we had underpaid them, but it was OK, because they had also underpaid us?!? Don't know quite how that works, but they we were under the impression that they knew what they were talking about. We always submit the information on our P60s, advised them when our second child was born, etc.


This morning, my wife has called them about a change in circumstance, and she has been advised that we owe them over £2000 and that we have until November 24th to pay it back and we are obviously panicking. We don't have that sort of cash lying around, and quite frankly, I do not believe them. They always seem to be "making mistakes" and "adjusting" things, and, TBH, I really do not know what to do. I thought this whole process was supposed to be easy. You submit the information on your P60, they tell you what your awards are, and that's that. How can we follow the rules and still end up owing money?!?


What on earth do we do?

*Rainbow*Warrior*

If you do owe them money they don't expect it all back in one go - you can make a repayment plan with them.

I was in a similar situation a few years ago. I offered to pay them back immediately and they refused and said wait for the letter - this took over a year as I think they waited til the end of the financial year. Our circumstances had changed by this time and I wasn't able to pay back the lump sum but I made an arrangement to pay £10 a month.

Steevi93

There was change in circumstances, and we accepted the "underpayment" and they have adjusted our credits accordingly, and we were told no further action was needed. Our circumstances have only changed once in 2 years, when my daughter was born, and suddenly, they've magicked up an £1000+ that we owe them that we just cannot understand how.

Steevi93

That's not a bad idea. Half of me is questioning my own sanity, and the other half seriously wonders if they pull numbers out of thin air?

Steevi93

Well, either errors were made by them before, or errors are being made now, because the 2 situations just do not marry up.