Tax Credit Over Payment

mandb2014

Hi All,


Sorry for the long post just wanted to give a brief backstory to see what you think the best way to proceed.


Was wondering if there was someone with any expertise who could advise me how to approach this. My partner has been to university for the past three years and qualifies next month and is starting her job next month, we have lived off my wage, child benefit and child tax credit (one child and it was around £80 a month). Its been a struggle but finally out the other side and can start getting finances in order.


I am grateful for the help from the tax payer for this period in terms of tax credits which really helped us, its my first ever dealings with them and hopefully my last. The scenario is in uni year one we were fine and the tax credit award was correct so we don't owe any arrears. Year two we owe about £800 (she picked up bank shifts which tipped us over the income bracket which I believe is £26,000 for one child that I gave them as an income projection, hence the arrears). In April this year they also paid us £137 which we have been told we also owe back.


I submitted the projection figures for this tax year April 2019 - April 2020 (At this point I didn't know shed get a job immediately after qualifying so it was on the basis of my wage only again) Now I have the change in circumstances to report that she's working which takes the claim to nil and (I assume)closes it. The decision for this year was to pay us nothing further until April 2020 and resume in the next tax year, but her full time job supersedes this and it will go to £0.00


I don't dispute the arrears now I have checked the rules and checked their figures. I cant afford the balance in full in one go. Is it likely tax credits will accept a payment plan over a 12 month period? I of course know the consequences if they are not prioritised over anything else you may owe so will do this if I have to. Its just tough when your trying to get back on track.


For people who have had arrears to pay how did you go about this, do I simply phone up and offer a payment arrangement and see if they accept it? I've heard they can be a nightmare to deal with from some of the threads I have read on here.


Thanks

KatrinaWaves

A 12 month payment plan is highly likely to be accepted. Just call them.

mandb2014

KatrinaWaves wrote: »

A 12 month payment plan is highly likely to be accepted. Just call them.

My other issue is the timings, we get a first wage at the end of October and will start to get back on our feet. So 01/11/2019 is probably earliest I could start paying which is a quite a while off from now. Not sure whether its worth delaying telling them about the change of circumstances until early October given it doesn't take effect until then so there more likely to agree to a November start.


Or would you tell them straight away as the new job is confirmed and contract signed as of yesterday. I guess I don't want them to turn around and say you should have told us sooner as there can be fines and so on associated with that?

poppy12345

You need to report the changes as soon as she starts working.

mandb2014

poppy12345 wrote: »

You need to report the changes as soon as she starts working.

That's great thanks I will just delay in a couple of weeks until she starts then tell them then it gives me the lee way I need. Do you just set up a standing order/direct debit then like you would with a lender then I'm assuming?

sheramber

You will probably have to supply an income and expenditure statement.