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Housing Benefit: not amending Tax Credits
panthony
Posts: 13 Forumite
Our income just went up and took us over threshold for child tax credit. Subsequently, We have been overpaid some tax credit, so weekly payments have stopped and will have to repay overpayment.
No problem so far.
Then, we report change to wages and change to tax credits to council for housing benefit reassessment. The council rightly reduce our award due to overpayment from increase in income, and rightly removed tax credits from income calculations going forward.
However, the council won’t use the new reduced tax credit award entitlement figure, for the last 6 months, for what we should have been paid since April, minus the tax credit overpayments to us. They are instead using what we were actually paid, including the overpayment.
Now, We have to repay HMRC the overpayment which is fine and not a problem, but the council won’t remove that overpayment amount from the income figure used previously for housing benefit. Effectively meaning we lose out twice. Once from the council and again from HMRC, same amount being counted twice means we are being penalised twice. This seems unfair.
Hopefully my explanation makes sense.
Help please
No problem so far.
Then, we report change to wages and change to tax credits to council for housing benefit reassessment. The council rightly reduce our award due to overpayment from increase in income, and rightly removed tax credits from income calculations going forward.
However, the council won’t use the new reduced tax credit award entitlement figure, for the last 6 months, for what we should have been paid since April, minus the tax credit overpayments to us. They are instead using what we were actually paid, including the overpayment.
Now, We have to repay HMRC the overpayment which is fine and not a problem, but the council won’t remove that overpayment amount from the income figure used previously for housing benefit. Effectively meaning we lose out twice. Once from the council and again from HMRC, same amount being counted twice means we are being penalised twice. This seems unfair.
Hopefully my explanation makes sense.
Help please
0
Comments
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Sorry the council is correct - the assessment was based on the income - tax credits - coming in at that time.
If HMRC do an o/p at any point then the council can't go back and use the revised fiqures.
They will however use the reduced fiqures from now on.
Recovery of overpaid tax credits
P2.635 If an overpayment of tax credits has occurred during a period in which HB/CTB was also payable,
and the overpayment is subsequently recovered, there is no provision in regulations to reassess
the HB/CTB award for that previous period.“You’re only here for a short visit.
Don’t hurry, don't worry and be sure to smell the flowers along the way.”Walter Hagen
365 Day 1p Challenge for 2021 #41 ✅
Jar £440.31/£667.95 and Bank £389.67/£667.950
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