Tax Credits Overpayment Query

Agamemnian

Hi all

I hope I'm putting this in the right place. I'm querying something on behalf of my ex.
She had a fairly significant tax credits overpayment and couldn't afford to pay it back when HMRC demanded it to the point they now have an attachment of earnings order. That's fine. She accepts she had to pay it back.

However previously to this she was receiving Universal Credit and they reduced the amount she was receiving down to 0 gradually as a way of re-couping some of the overpayment.

The query is this. Now that she has this attachment of earnings order am I right in thinking she should be able to re-claim for Universal Credit as this did make up a fairly significant portion (about 20%) of her income and I'm thinking its wrong for repayments to be taken both via the attachment of earnings order and via reducing Universal Credits payments.

For reference she has our 2 boys, 10 and 11, has no childcare costs and no illnesses, disabilities or anything else and she brings home about 1200 a month after tax.

Based on her circumstances UC calculator says she should be getting around 507 with a means tested reduction of about 1.50. I know the calculators aren't exactly accurate but should at least give a ball park figure.

Should she be able to get this now?

I only ask as I don't want her to have to go through all the applications and meetings only to be told no again.

Icequeen99

Agamemnian wrote: »

Hi all

I hope I'm putting this in the right place. I'm querying something on behalf of my ex.
She had a fairly significant tax credits overpayment and couldn't afford to pay it back when HMRC demanded it to the point they now have an attachment of earnings order. That's fine. She accepts she had to pay it back.

However previously to this she was receiving Universal Credit and they reduced the amount she was receiving down to 0 gradually as a way of re-couping some of the overpayment.

The query is this. Now that she has this attachment of earnings order am I right in thinking she should be able to re-claim for Universal Credit as this did make up a fairly significant portion (about 20%) of her income and I'm thinking its wrong for repayments to be taken both via the attachment of earnings order and via reducing Universal Credits payments.

For reference she has our 2 boys, 10 and 11, has no childcare costs and no illnesses, disabilities or anything else and she brings home about 1200 a month after tax.

Based on her circumstances UC calculator says she should be getting around 507 with a means tested reduction of about 1.50. I know the calculators aren't exactly accurate but should at least give a ball park figure.

Should she be able to get this now?

I only ask as I don't want her to have to go through all the applications and meetings only to be told no again.

They have only used the attachment order because she isn't getting UC.

There must have been something else going on with her UC claim to reduce it to zero - tax credit overpayments are only deducted at a certain percentage of the standard allowance, the child payments would be unaffected so that wouldn't account for her UC being reduced to zero. Sounds like she needs to see a welfare rights specialist.

Also, any deductions via an attachment of earnings are not taken into account when calculating UC.

IQ