Tax Credits over payment who's at fault?

Darksparkle

n1guy wrote: »

Would you if they told you all was fine? And there was no need to worry about an overpayment?

Yes until I got an award notice with the correct details.

I want written confirmation at all times.

n1guy

Darksparkle wrote: »

Yes until I got an award notice with the correct details.

I'm sorry but this is not my fault.

Darksparkle

n1guy wrote: »

I'm sorry but this is not my fault.

Where did I say it was? I just said I personally would have been chasing it up until I got an award.

n1guy

Darksparkle wrote: »

Where did I say it was?

That is what you are implying.

Darksparkle

n1guy wrote: »

That is what you are implying.

Yea that's it. I've taken the time and effort to reply to you just to say it's all your fault.

n1guy

Sorry for the delay in response but had to get more information which I now have, the reason tax credits did nothing with the information I gave them was there is a 5K disregard, meaning they will not change the award unless its greater than this, so they continue to overpay and then take it back off you which is a damn stupid system.

They have now suspended my claim. I phoned the compliance department yesterday who asked me do you agree that the P60 information was incorrect, I said yes which it was they said thats OK we will be in touch.

I'm not sure how to proceed with this because if its suspended it leaves my wife in the situation where there is no point in her working.

Darksparkle

n1guy wrote: »

Sorry for the delay in response but had to get more information which I now have, the reason tax credits did nothing with the information I gave them was there is a 5K disregard, meaning they will not change the award unless its greater than this, so they continue to overpay and then take it back off you which is a damn stupid system.

They have now suspended my claim. I phoned the compliance department yesterday who asked me do you agree that the P60 information was incorrect, I said yes which it was they said thats OK we will be in touch.

I'm not sure how to proceed with this because if its suspended it leaves my wife in the situation where there is no point in her working.

They aren't continuing to overpay you, that's how the disregard works.

If your income hasn't increased by more than £5000 then you won't be overpaid. It just means your payments won't go down until the new tax year in April.

Tax credits is based on your previous year's income unless the current year income increases by more than £5000 (changing to £2500 in 2016/17) or decreases by £2500.

Example:

2014/15 income £15,000
2015/16 income £18,000
2016/17 income £18,000

Claim for 2015/16 will be based on the 2014/15 income of £15,000 because the increase is les than £5000.

There is no overpayment due to the £3000 increase.

Claim for 2016/17 will be based on 2015/16 income of £18,000. Payments will reduce in April to take into account the increase in income.

n1guy

Darksparkle wrote: »

They aren't continuing to overpay you, that's how the disregard works.

If your income hasn't increased by more than £5000 then you won't be overpaid. It just means your payments won't go down until the new tax year in April.

Tax credits is based on your previous year's income unless the current year income increases by more than £5000 (changing to £2500 in 2016/17) or decreases by £2500.

Example:

2014/15 income £15,000
2015/16 income £18,000
2016/17 income £18,000

Claim for 2015/16 will be based on the 2014/15 income of £15,000 because the increase is les than £5000.

There is no overpayment due to the £3000 increase.

Claim for 2016/17 will be based on 2015/16 income of £18,000. Payments will reduce in April to take into account the increase in income.

Right OK I understand, I didn't want any over payments which was why I gave them the estimate, to keep myself right. But why would they suspend my claim?

Darksparkle

n1guy wrote: »

Right OK I understand, I didn't want any over payments which was why I gave them the estimate, to keep myself right. But why would they suspend my claim?

You had said previously that they hadn't updated the income for this year. So have you actually checked an award notice to see if they have? Even with the disregard, you need them to update it for April.

Re: suspended payments, that's normally what compliance do if you don't reply to their opening letter by the deadline.

n1guy

Darksparkle wrote: »

You had said previously that they hadn't updated the income for this year. So have you actually checked an award notice to see if they have? Even with the disregard, you need them to update it for April.

Re: suspended payments, that's normally what compliance do if you don't reply to their opening letter by the deadline.

The award notice I last got does not show the correct income. Compliance is closed today so I phoned the tax credits helpline, the guy could see my claim taken off but thats it, he couldn't see anything else or any scheduled payments, The deadline was 29th Feb, I phoned yesterday, I got the letter Thursday. I get the impression they think I have done this on purpose to try and scam them. The P60 is there for them to see but they haven't requested it.