Underpayment/overpayment

weedave111

Hi,

We are due a payment of around £2000 when final income is confirmed but we owe money due to an overpayment on a different claim 3 years ago. Will they use the £2000 to pay towards the overpayment or pay us a lump sum. Our tax credits have already been reduced to start paying it back. We are in a financial crisis so just wanted to know. Thanks.

weedave111

Anyone please?

marliepanda

When you say different how do you mean?

weedave111

marliepanda wrote: »

When you say different how do you mean?

It was a claim we had before but we it was a single claim but should have been a joint claim. We didn't know what we were doing at the time. It was from 2104 to 2015 so not 3 years sorry. I have no idea about tax credits.

weedave111

..........

NeilCr

I'd say you have to ask the IR myself. It could depend on a number of things

Have they actually written to you about the overpayment? The letter can tend to say what they propose or ask for ways you are going to repay

Darksparkle

NeilCr wrote: »

I'd say you have to ask the IR myself. It could depend on a number of things

Have they actually written to you about the overpayment? The letter can tend to say what they propose or ask for ways you are going to repay

I would also suggest you call them. No one can say for definite whether they will or won't take it to recover the overpayment. In my opinion they should but they may only take a %.

paragon909

Any claimant who has an overpayment within DWP then in the future has a back payment will not get the money, It will go to debt recovery who will take what is owed then refund the difference, Would be rather stupid for DWP to send a back payment to a claimant who owes them money.

Darksparkle

paragon909 wrote: »

Any claimant who has an overpayment within DWP then in the future has a back payment will not get the money, It will go to debt recovery who will take what is owed then refund the difference, Would be rather stupid for DWP to send a back payment to a claimant who owes them money.

HMRC has its own recovery rules though.

charlie358

I've just started a similar thread. It looks like we're owed money but I'm hoping they use this to pay off our overpayment so my weekly money goes back to what is should be.

marliepanda

charlie358 wrote: »

I've just started a similar thread. It looks like we're owed money but I'm hoping they use this to pay off our overpayment so my weekly money goes back to what is should be.

At least in this case you're very much in control. If they do just pay it to you in a lump sum you can just send it straight back to them.