Massive Tax Credit Payment - Definitely Wrong

twinklyspangle

Hi,

I have received a huge payment today that is definitely not what I am entitled to - I think I gave the renewal my end-of-year amount of PAYE rather than up to now (as in, the end of March total paid salary and not end of June..)

How will they get this back? It's nearly 3,000 pounds and I'm completely and utterly broke I've never had that much in my account in my life - I don't even have electric on my meter, can I spend any of it? Can I send it straight back? What should I do?

Darksparkle

The renewal asks for your income for the previous tax year so to 5th april.. Phone them and discuss it. You need to find out if it's incorrect and if so why.

poppy12345

twinklyspangle wrote: »

Hi,

I have received a huge payment today that is definitely not what I am entitled to - I think I gave the renewal my end-of-year amount of PAYE rather than up to now (as in, the end of March total paid salary and not end of June..)

How will they get this back? It's nearly 3,000 pounds and I'm completely and utterly broke I've never had that much in my account in my life - I don't even have electric on my meter, can I spend any of it? Can I send it straight back? What should I do?

As you know it's a massive overpayment you should not spend it! You should ring them asap to see what they say. No one can tell you for sure if it's an overpayment only they can.

twinklyspangle

I have rung and they have checked it and told me that it is money that I am entitled to and that I underestimated my income and now that I have provided the correct amount, which was directly from my March payslip, they have calculated that is how much that I am owed.

I asked on the phone so, can I spend this money and she said, yes you can, go and have a nice weekend. I asked them to make a note of this and she said it's fine, all calls are recorded.

I am still terrified of spending any of it - do you think I should put it aside anyway just in in case? some of it? get some electricity?

Darksparkle

Have you received your final awards notice yet? If so have you checked it?

twinklyspangle

No it's probably at home waiting but I checked the amounts on the phone and they were right - does this ever really happen though?

Cyclamen

Twinkly

I understand your anxiety about this.. but if they have told you the money is yours and explained why i do think it is safe to spend it.

You could wait for the paperwork to arrive to be certain and set your mind at rest.

Yes this does happen, we received a 'lump' of money after filling in the actual figures at the end of 2014 as up until then it had been an estimate.

andrewmp

Do you mean you overestimated your earnings? If so, it might be yours.

If you underestimated your earnings then I doubt they would be sending you a big back payment.

cantcope

if it turns out they have overpaid you they will just take it from future payments spread out through the year. sounds like its yours though x if you're still worried maybe put £1k of it in an account and leave it there in case they ask for it back later in the year x

takman

twinklyspangle wrote: »

I have rung and they have checked it and told me that it is money that I am entitled to and that I underestimated my income and now that I have provided the correct amount, which was directly from my March payslip, they have calculated that is how much that I am owed.

I asked on the phone so, can I spend this money and she said, yes you can, go and have a nice weekend. I asked them to make a note of this and she said it's fine, all calls are recorded.

I am still terrified of spending any of it - do you think I should put it aside anyway just in in case? some of it? get some electricity?

Considering you have never had this much money before and have been surviving before you had it then you should put almost all of it in a savings account and keep it for an emergency fund. You could keep £100 to get some electric and essentials but you won't be helping yourself in the long term if you go on a spending spree.

TELLIT01

Don't go out and blow it, and to be honest I wouldn't even tell your friends about it in case they think it's an excuse for a party at your expense.