Overpayment of CTC help please

PMJ88

Hi there,

Firstly please can I ask you respond with kindness, you may decide this is my own stupid fault but all the same I'm upset about it. Thank you...

I rang Tax Credits last April to ask if I was eligible for any help. I was on Maternity at the time and due to go back to my part time job some three months later. She told me she'd do the application over the phone for me as they were in the process of switching to UC and didn't want me to get lost in the system by sending out forms etc. I gave all the information necessary and the application was put through, she estimated what I'd be entitled to and when the letter came through it was fairly accurate.

No problems then until April this year whereby my payments stopped, as I expected them to. I've now just had a letter to say I owe them £947.16 for overpayments as I earned more than what was expected. Upon ringing them they have explained to me that although while doing the application they ask for the year before's details it is used as an indicator only of what you'd earn in the current year. I was totally misled on this point. What was explained to me was that payments this year were BASED on earnings for last year and she even went so far as to say 'I'd definitely get a claim in because next year when you're back working I highly doubt you'd be entitled anymore'. Great I thought, thanks for you help! The chap on the phone today was very understanding and did apologise to me, but could only advise me to dispute the decision. I've got very little hope of getting it overturned. I understand I have been overpaid. But this feels mightily unfair as why oh why would I even attempt to claim, knowing I was going back to work and my earnings would increase (actually they didn't increase much from maternity amount but first £100 per week of maternity pay is not included in tax credits allowance). I just feel as if that initial person who put through my claim totally misled me and has now led me to have this huge debt!

Am I totally in the wrong here? Any words of advice? Thank you

sheramber

There is a disregard of £2500 for any income change in the current year.

So, Tax credits are worked out on your income for the previous year unless your current year income increases or decreases by more than £2500 .

If the current year figure is higher then tax credits are based the new amount less £2500

if the current year figure is less than the previous year then tax credits are based on the new lesser figure plus £2500.

Did you notify tax credits when you started working?
You are required to notify them of any change in circumstances within a month.
You would then have been asked of your estimated income for the current year so your payments could be adjusted if necessary.