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Tax credit overpayment £70 a week

Hello all,

To cut a long story short,

The partner and I have an overpayment of around 3k
It's partly our and HMRC's fault.

We informed them of changes to circumstances over the phone early last year. And we left it at that. They then a month or so ago get in touch about the overpayment. Now originally we had a back and forth and they ultimately said we should have chased it up when we didn't hear anything back.

Now, they're taking back £70 a week, £280 a month.
I don't dispute the over payment, i dispute the amount it which the recovery is.
Even to the point where he knock on is the council got in touch and suspended our claims because it appeared we where no longer receiving CTC for one of our children so they wanted proof my youngest was living and alive etc and we took the overpayment notice to them so they could see why.
They where appaulled at how much was being taken.

It was causing financial hardship so we filled an income and expenditure with HMRC
We've just had their reply today.

They've refused a reduction in how much they take weekly because:
We are already taking the minimum amount from you.

I think this is a lie and that £70 a week is excessive,
They also tell me that I have no right to dispute this decision.

I'm after anybadvice on next steps.

We've done our best to accommodate the loss of £70 a week but things aren't easy.

To reiterate. I don't dispute the OP, I just think that £70 a week is excessive,

I can copy the letter word for word if it's of any help to people.

Thank you in advance.



  • DarksparkleDarksparkle Forumite
    5.5K Posts
    Tax credits overpayments are taken back at a set percentage of your entitlement based on your circumstances.

    10% for those on the maximum
    25% for those not on the maximum and earning less than £20,000
    50% for those earning over £20,000
    100% if on family element only.

    Are you having the correct percentage deducted based on your circumstances?
  • Andy0191Andy0191 Forumite
    4 Posts
    Thanks for a quick reply Darksparkle,

    I don't believe we're on maximum,

    However I do work full time too. So I most likely fall in the 2nd setting.
  • Andy0191Andy0191 Forumite
    4 Posts
    When I rang they said they can take upto 50% because I work. But I don't earn over 20k in a year far less than that.
  • DarksparkleDarksparkle Forumite
    5.5K Posts
    It's based on your total household income rather than your individual income.

    What was the household income for 2016/17 and expected income for 2017/18?
  • Andy0191Andy0191 Forumite
    4 Posts
    16/17 was around 17-18k
    This years is expected to be around the same, maybe 19-20k (this is assuming that monthly KPI bonus payments from work are paid, they're not guaranteed) also. This is before tax is deducted.
  • DarksparkleDarksparkle Forumite
    5.5K Posts
    Tax credits is based on the figures before tax/nic.

    It's hard to really comment more without knowing more about your claim and circumstances but if you earn less than £20,000 and they are taking 50% (so I assume you are receiving a payment of £70 each week) then you should have further discussion with them.
This discussion has been closed.
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