Tax credits overpayment

Whatnow75

I have been a single parent for approx 6 years.  I have always worked.  I received tax credits.  Now my children are 13 yrs (twins) i am able to be more flexible with work.

So i thought I was doing the right thing in finding a higher paid job, i informed tax credits who are impossible to get through to by phone!

i have now been told i have a huge 7k overpayment to pay back to them!!

So i have been penalised for finding a better paid job where i can you come off tax credits, all because i have started a new job half way through the tax year. They are claiming back the whole year of tax credits even though i had needed the tax credits in the months before i got the new job. 

I cant afford to pay it back.  I am already £35k in debt. Which i need to pay plus my mortgage and bills.

has anyone been in a similar situation?  Please can you offer advise.  I am now wondering if i should give up my new job to stall the overpayment!

cantcope

They'll set up a payment plan or reduce your credits until its paid back. Give them a call.
I had an overpayment in the past so they reduced my tax credits by almost 80%. Then when i was made redundant they then sent a big payment that i was apparently due.. I have no idea how they work it out. I have approx £4k in my bank  that i am certain they will tell me has been overpaid this year as i don't think it was due it. Didnt matter how many times i called they said it was correct. i dont trust them so never spent it.

Potbellypig

Yea that part of it is completely flawed. Many years ago, I was made redundant in November but because I'd already earned too much for that tax year, I wasn't entitled to benefits I would have got if it was April. Sorry I can't help though. 

KatrinaWaves

If you have come off tax credits then it may be impossible to reclaim them, forcing you onto Universal Credit which may not be so favourable to you.

Quitting a highly paid job purely to go back on benefits seems a bit like cutting off your nose to spite your face.

Tax credits is based on yearly income. You have exceeded that. They will set up a repayment plan. You having existing debts does not factor into that. Surely your new high paying job will help you pay off your debts quicker rather than remaining on tax credits.