Tax Credit Overpayment - Paying it back

Casual_Bystander

Hi all

Separated from my husband 'in circumstances likely to be permanent' in May last year and moved away from the area with the kids.

Been claiming single person tax credits since then. 2 kids, 1 disabled

As i was/am having some mental health issues, struggling with the kids on my own and having a mother in hospital, my husband moved down to help out and has been sleeping on the sofa since Jan.

With all that's been going on, including the death of my mother in March, i never got round to cancelling the single claim. Although we are not back together, it would be very difficult to prove we weren't, plus there may now be a reconciliation on the cards. Because of this, i went online and did a change of circumstances backdated to Jan when he moved in.

Yesterday i received a 'provisional tax credit statement' stating i owe back £1120 for last tax year (payments received Jan-Apr), plus the £740 i've received so far this tax year. Alot of money, but i understand that it's my fault for not telling them in Jan and i have to pay it.

Due to husbands earnings, we are not eligible for a joint claim, so no future payments for them to reduce. Letter just says 'we will contact you shortly to ask you to pay back the amount you owe'

Do they usually want the whole lot back in one go? Or can you pay it back in instalments? Will they count just my earnings when deciding how long i can pay it over, or my husbands as well?

Thanks

Cas

Darksparkle

You'll get a notice to pay letter asking for the full amount but it will say that you can call them to discuss installments.

If you offer a reasonable amount then they might just accept that. If not they may then need to discuss income/outgoings. Not sure if they would count his, I would have thought so.

Casual_Bystander

Thanks Darksparkle

Good to know i may be able to spread it out, will struggle, but spreading it out over 5-6 monthly payments would be doable, £1800 in one hit wouldn't

Thanks

Cas