Child Tax credits Overpayment Query

JustRaider

Hi,

I've received a Notice to pay child tax credits overpayment (T610) letter. It relates to the financial year ended 5/4/2017 for
£1,126 amount to pay. I phoned the payments helpline, with
the intention of arranging to pay the £1,126. However before
I could negotiate, I was told that I owe other amounts relating
to various tax years in the past. I was therefore forced in the
position to arrange payment for a sum 4 times more than the
amount stated on the letter.
Should I negotiate payment on just the £1,126 or is it the total
amount owing over the past years going back to 2004.

Thanks,
JustRaider

Darksparkle

What do you mean by negotiating? Do you mean agreeing to a payment plan or do you expect to negotiate to reduce the amount owed?

JustRaider

Hi Darksparkle,

I'm agreeing to a payment plan. As the letter
concerned the financial year ended 5/4/2017,
I understood the payment plan would be based
on the overpayment for that particular year only.

Darksparkle

Well you can make a plan for that yes but if you do have other overpayments then they will obviously highlight this to you and attempt repayment.

JustRaider

Hi Darksparkle,

Yes, but the response I received concerned arranging a plan
to cover the overpayments for the financial year up to
5/4/2017 ANDall the other overpayments for
previous years.
Like I had no choice in the matter.

Darksparkle

To be honest, that’s their job, to recover overpayments. So yes they might be a little pushy on that front. It won’t go away and they are getting more powers to deduct from wages etc so best to come up with a plan with them yourself that’s manageable to you.

JustRaider

Hi Darksparkle,

OK Thanks for your advice. I'll arrange a payment plan.

globalscouse

I've also got a repayment notice which is fine, I knew it was coming as they didn't stop the payments fast enough when I told them my circumstances had changed. Regardless, what I don't understand is why the repayment I make is taken from my Net income.
If the award is base on my circumstances ie Gross income, and I then get an over payment, this is based against the award and my Gross income. So should the repayment not be taken before I pay income tax. Just feels like they're getting two bites of the apple.