Tax Credit Overpayment Mystery

chambta

I've tried ringing twice and been cut off each time as they're 'unable to help'. I'll try again tomorrow but in the meantime I wondered if anyone can shed any light on this situation.

My partner and I separated in May this year. She was in receipt of a small weekly amount when we were together but after moving out she called to inform them of the new situation and started receiving what I assume to be much larger amounts as she is a single, non-working parent. I also spoke to them shortly afterwards after receiving a renewal letter and they confirmed to me that the previous claim had ceased.

Given she went from one claim to another (ie there was never two claims or payments) how is it possible that there has been an overpayment?

Furthermore how on earth can someone be held liable for any overpayments (even if correct) if they never received them personally? We're on good terms and aren't going to be falling out over this but I fail to see how they can't be bang wrong here.

Any ideas?

Darksparkle

Depends entirely on when she notified them of the change and if any payments were made after the date of the change.

That's assuming that is the reason for the overpayment and not something else.

In a joint claim you are both liable for any overpayment, the decision as to which bank account to use lies with you and your ex partner. This is confirmed on the claim form and help notes.

chambta

That's the point - payments changed instantly after she'd moved out and notified them. She was getting about £30pw when we lived together due to my income and I assume considerably more than that now.

How can there be an overpayment when she's getting more than before?!

If a new claim results in a reduction I could understand how it would be possible but this makes no sense.

Darksparkle

chambta wrote: »

That's the point - payments changed instantly after she'd moved out and notified them. She was getting about £30pw when we lived together due to my income and I assume considerably more than that now.

How can there be an overpayment when she's getting more than before?!

If a new claim results in a reduction I could understand how it would be possible but this makes no sense.

So when did she move out?
When did she notify them?
What was the last date of payment in the joint claim?

chambta

May 18th I think. She notified them within a few days, probably the following working day as she was entitled to significantly more as a lone parent.

As I didn't receieve the money I've no idea without her showing me her online banking. You can only have one claim so she went from a joint claim to a sole claim straight away. I fail to see how this can possibly result in an overpayment.

Am I missing some vital piece of knowledge here? Obviously I'll get to the bottom of it when they answer the phone but it makes no sense at all to me.

Sambella

Tax credit overpayments are a nightmare.

I was hit with them twice once when my son left school and again when I came off tax credits. They do not clearly explain how it has occurred but the sums can be pretty large. Mine were £800 and £600.

You supply them with the information they require and inform them of any changes to income promptly but somehow it still ends up that you have been overpaid. It is a huge issue which causes hardship. My overpayments were paid by an adjustment to my tax code but I believe they do it via direct debit with some people now.

If your ex was only getting around £30 pw I fail to see how the overpayment could be huge.

chambta

It's not huge at all. Barely three hundred quid. Which presumably is the amount paid on that claim since the beginning of this tax year until it ceased. I know I'm assuming/presuming a few things but without speaking to them it's all I've got!

I look forward to putting them straight later on.

Darksparkle

If she made any money paid from the joint claim after 18th May then that would be overpaid.

Did you both complete the renewal for the joint claim? If the overpayment is the full amount paid from the start of the tax year until you separated then it sounds like one or both of you haven't completed it.

[Deleted User]

There's something about living with someone that tends to lead to overpayments of Tax credits. And you're right, you never find out why. When I lived with my now ex, there was an overpayment of around £250 each year, and I never found out why. I don't know, do your wages vary at all? Or as suggested, it could be due to the shared rate being overpaid, and then her getting the single parent rte at the same time.., or their payment dates.

Darksparkle

deannatrois wrote: »

There's something about living with someone that tends to lead to overpayments of Tax credits. And you're right, you never find out why. When I lived with my now ex, there was an overpayment of around £250 each year, and I never found out why. I don't know, do your wages vary at all? Or as suggested, it could be due to the shared rate being overpaid, and then her getting the single parent rte at the same time.., or their payment dates.

You can find out why if you ask them.

chambta

I've called them and a very nervous sounding Geordie called Kevin basically said to ignore it. It's referring to 2016/7 and something to do with it not being 'finalised'. He admitted that we'd done everything correct and that her sole claim started right away at the correct time.

Why they send out such misleading letters I've no idea.