Paying back tax credit overpayment

Kochanski19

Hi, we are currently paying back tax credit overpayments that amount to several thousand pounds. I'm not sure how this happened as I have told Hmrc about changes to income every year. The main problem was when I went from studying to trying I think.
Anyway I am currently paying back about £70 a month. This is manageable (just). Part of the problem is I have worked at overtime and a second job to increase income and now we don't qualify for tax credits. Month to month is a struggle and I have had to resort to payday lenders several times.
I am now coming to the point where I can access early two small old pensions which provide small yearly income and very modest lump sum payments.
Will Hmrc just take the money if I draw down the lump sums? I ask because this will be the first sums of cash we have had in a long time and I have urgent household repairs (replacement Windows, storage heaters etc). We claim DLA and carers allowance for our disabled son. Sorting the house is really important.

Any information or advice gratefully received. Thanks in advance.

antonic

Kochanski19 wrote: »

Hi, we are currently paying back tax credit overpayments that amount to several thousand pounds. I'm not sure how this happened as I have told Hmrc about changes to income every year. The main problem was when I went from studying to trying I think.
Anyway I am currently paying back about £70 a month. This is manageable (just). Part of the problem is I have worked at overtime and a second job to increase income and now we don't qualify for tax credits. Month to month is a struggle and I have had to resort to payday lenders several times.
I am now coming to the point where I can access early two small old pensions which provide small yearly income and very modest lump sum payments.
Will Hmrc just take the money if I draw down the lump sums? I ask because this will be the first sums of cash we have had in a long time and I have urgent household repairs (replacement Windows, storage heaters etc). We claim DLA and carers allowance for our disabled son. Sorting the house is really important.

Any information or advice gratefully received. Thanks in advance.

Did you give HMRC your Income & Expenditure details before the amount of £70/mth repayment was agreed ?.
You *should* tell HMRC of the extra income you will be getting from your small pensions but not necessarily about the lump sums and even if they do ask tell them its dessignated for house improvements to improve your son`s life ( they wont just take them from you dont worry about that !).
Stress to them that this is a financial struggle for you and ask if they will suspend collection of the debt.
Good luck.