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Think I have Tax Overpayment - Worried re outcome
GeekieGirlie
Posts: 132 Forumite
Hello all. As the title says I am guessing I have been over paid for the year on child tax credits.
A few weeks ago our weekly payments reduced in half so I rang up and they said it was due to receiving my hubbies P60 from employer and they had amended his earnings. So left it at that and waited for the anunal review form and to see hubbies P60. when they arrived it stated for the year he had earned 31000. the previous year it had been 23000. He had been doing additional over time and we had never realised what his yearly earnings had become. So I am doing the annual review now confirming those figures. We don't receive working tax credit but get roughly 7000 in child tax for the year. I have so many concerns now though.
1) Are we going to get into serious trouble for under estimating? He swapped companies half way through year so never saw full earnings in the year on his wage slip so had no idea it was that amount.
2)Obviously i am guessing we have been over paid so it may be they take that amount and we know longer get a weekly payment but my biggest concern is, if after taking what ever we are entitled to for the year and using that as repayment if there is still outstanding to pay i read on google search somewhere it as to be paid in 30 days in full. Is this correct?
We have just finished a debt management plan after 8 years and settled it in full and closed it last week so we have no savings at all to pay a large sum of money. I just don't know where I would find it within 30 days if that's the case. We can't get loans or cards any more.
Now I am obviously worrying about an outcome I don't know yet but I know there will be some to pay back and the weekly payments we would survive without if we had to we have done budget for the last 10 years when on the debt plan so I am sure we could do it. But i am just worried i won't have the amount in 30 days and then I don't know what happens to you?
Does anyone have any experience of what happens with an over payment and can give me some advice or just tell me what happens as I am sick with worry,
thanks in advance.
A few weeks ago our weekly payments reduced in half so I rang up and they said it was due to receiving my hubbies P60 from employer and they had amended his earnings. So left it at that and waited for the anunal review form and to see hubbies P60. when they arrived it stated for the year he had earned 31000. the previous year it had been 23000. He had been doing additional over time and we had never realised what his yearly earnings had become. So I am doing the annual review now confirming those figures. We don't receive working tax credit but get roughly 7000 in child tax for the year. I have so many concerns now though.
1) Are we going to get into serious trouble for under estimating? He swapped companies half way through year so never saw full earnings in the year on his wage slip so had no idea it was that amount.
2)Obviously i am guessing we have been over paid so it may be they take that amount and we know longer get a weekly payment but my biggest concern is, if after taking what ever we are entitled to for the year and using that as repayment if there is still outstanding to pay i read on google search somewhere it as to be paid in 30 days in full. Is this correct?
We have just finished a debt management plan after 8 years and settled it in full and closed it last week so we have no savings at all to pay a large sum of money. I just don't know where I would find it within 30 days if that's the case. We can't get loans or cards any more.
Now I am obviously worrying about an outcome I don't know yet but I know there will be some to pay back and the weekly payments we would survive without if we had to we have done budget for the last 10 years when on the debt plan so I am sure we could do it. But i am just worried i won't have the amount in 30 days and then I don't know what happens to you?
Does anyone have any experience of what happens with an over payment and can give me some advice or just tell me what happens as I am sick with worry,
thanks in advance.
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Comments
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You say 2014/15 was £23,000 and 2015/16 £31,000, did you ever provide an estimate for 2015/16 income? Or did you leave it at £23,000?
If so the overpayment would be approx £1230 for 2015/16.
They'll recover that from your existing tax credits if you remain eligible (cannot say whether you are or not based on info provided).
If you stop being eligible and the overpayment is not fill recovered, they'll initially ask you to repay within 30days. If that is not possible you'll need to discuss a repayment plan with them.0 -
When we did the review 2014/2015 I can't remember if we gave an estimate but I think they just left it at the £23000 as that was what I presumed we would earn still too.
That's great info thank you. I had no clue how to work out how much I had been over paid. So thanks for the speedy reply and approx over payment amount.It helps
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I am very sorry I replied in above post and forgot to do it to you as a direct quote but wanted to make sure you saw it, didn't want you to miss it and think i hadn't thanked you. sorry about that.Darksparkle wrote: »You say 2014/15 was £23,000 and 2015/16 £31,000, did you ever provide an estimate for 2015/16 income? Or did you leave it at £23,000?
If so the overpayment would be approx £1230 for 2015/16.
They'll recover that from your existing tax credits if you remain eligible (cannot say whether you are or not based on info provided).
If you stop being eligible and the overpayment is not fill recovered, they'll initially ask you to repay within 30days. If that is not possible you'll need to discuss a repayment plan with them.0 -
GeekieGirlie wrote: »I am very sorry I replied in above post and forgot to do it to you as a direct quote but wanted to make sure you saw it, didn't want you to miss it and think i hadn't thanked you. sorry about that.
No problem.0 -
GeekieGirlie wrote: »Does anyone have any experience of what happens with an over payment and can give me some advice or just tell me what happens as I am sick with worry,
thanks in advance.
I received an overpayment of over £7k in years 2015 - 2016 and was expecting a letter saying I had to pay it all back in 30 days.
Got a letter this week saying they would retrieve only £1100 from my 2016 2017 payments and the other £5900 from future awards.
Not sure if interest is on it (can anyone clarify), if not, it's like having a £7k interest free loan over 6 years.
I was going to pay it all off, but if they don't charge interest I'm better off leaving it in my account than theirs 0 -
They don't charge interest.0
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