CTC, they paid us even after we asked them to stop. You will like this story!!!

Eclipse76

Hello Everyone


I need some guidance on a monumental mistake on both mine and my wifes part, and the tax man.


It goes something like this. My wife and I, when we moved in together back in 2011 earned more than the cutoff for CTC. So my wife contacted the tax people, we filled out the forms and sent them back. We received (and still have) a letter back from them saying they have accepted our withdrawal from CTC. We owed nothing and that was the end of the case.


Fast forward to now and we are moving house. Part of this process is spending time sorting out finances, finding forms etc, i'm sure you know the deal. This is where it gets really embarrassing!


We have still been getting £81 a month....... since 2011. I thought it was normal as when my wife did the forms I thought it was WTC that she cancelled and that we were still ok to get the ctc. She had not realised either, the penny had not dropped. It sure has now!!!!!


So we obviously need to stop this payment, we are not entitled to it. What worries me is what is going to happen. Both my wife and I are at fault for not realising. The tax man did not stop the payments even though they processed the case. We have had no letters or anything from them since 2011.
So where do we stand? Will we be expected to pay this money back? They obviously have no idea these payments are coming to us. Could we pay it back over time as we don't have £5k lying around!

Any suggestions will be very helpful.


Thank you

Darksparkle

Are you sure it's CTC and not Child Benefit?

Eclipse76

Hi
Good question, how would I tell the difference?

Darksparkle

Eclipse76 wrote: »

Hi
Good question, how would I tell the difference?

I would assume it would show differently on a bank statement?

Child benefit for one child is £20.70 per week but is normally paid 4 weekly so should be £82.80

Eclipse76

Hi

This is £81 and has been for some time.

Darksparkle

She'll need to call them then. Tax credits only pay weekly or 4 weekly. They don't pay monthly.

You mention filling out forms before, what forms?

NYM

Let's put it another way...:)

Have you been getting that £81 in addition to any other child related payments from the government.

Eclipse76

We only get the £81 a month regular as clockwork, usually around the 5th/6th, nothing else from them, zero zip nothing.


The forms we filled out back in 2011 were to cease the ctc, which we got confirmation of.


Situation is wy wifes daughter from a previous marriage primarily lives with us (9yr old) and we have a combined income of £67k before taxes/pensions etc.

Darksparkle

There aren't any forms to stop getting tax credits.

The only forms they have are to claim and to renew. To end a claim it's done by phone (or by writing a letter).

As mentioned, tax credits don't pay monthly, only weekly or 4 weekly, so if it's a monthly payment it would suggest it's something else.

Plus tax credits needs to be renewed each year to be able to keep claiming so if your partner hasn't been doing this, tax credits wouldn't continue.

Eclipse76

This is what I find odd, we have not had any letters for years. The letter we had from them states that child tax credit has stopped due to our earnings, its all black and white.


So I have to assume that this payment we get is child benefit and is above board and normal?


Thank you for taking the time to reply :O)

Darksparkle

I wouldn't assume anything. I'd be calling the relevant departments.

What does it actually show on your bank statements?

Also you mention your combined income of £67,000. That would be too high for CTC. The limit for one child is £26,000 (higher if childcare or disabilities).

For child benefit, if one of you earn over £50,000 you should be doing self assessment to repay some or all of your child benefit (it's a percentage between £50K-£60K and all if over £60K).