Tax credits owing when transfer to universal credits?

Soconfused14

I have finally applied for Universal credits thanks to advice from this forum.
I want to know if it is likely that I will actually owe Child tax credits back as I claimed for Universal Credit the day after I had a Child tax credit paid.

I have read about in-year finalisation and am pretty sure I will owe about 2 weeks money.
Will this money need to be paid back immediately or will it come off my Universal Credits somehow?

calcotti

Soconfused14 said:

I have finally applied for Universal credits thanks to advice from this forum.
I want to know if it is likely that I will actually owe Child tax credits back as I claimed for Universal Credit the day after I had a Child tax credit paid.

When you received you payment is not relevant. You will be sent a Tax Credit in year finalisation pack. HMRC will then work out your tax Credit entitlement up to the date of closure and compare it with what you have been paid. Either they will owe you some money or you will owe them. Pretty much impossible to work out in advance unfortunately.

As regards repayment, I don't know how they approach that. If the issue arises please come back and let us know.

NedS

If there is an overpayment of tax credits, HMRC will offer you the opportunity to repay it or the overpayment can be automatically deducted from your UC claim. If HMRC end up owing you money, they will make an extra final payment when the TC claim is finalised.

Soconfused14

So its taken 4 months for this to be sorted out.
A few days after I wrote here, I got a Tax credit award review. This showed I owed 3 weeks worth of tax credits. I had a month to dispute this if I thought was wrong.
In May I got a Final notice of the tax credits overpayment and a letter that said the debt would be passed to DWP.

I expected something from DWP to let me know when they would start taking the overpayment and maybe an idea of how much they were going to take.
I was aware the amount would probably be 1\4 of my Standard Universal Credit allowance of £525.72, so £131.43 per month. 

Nothing happened in May or June, then in July, I checked my payment amount and saw they had taken the £131. 

Obviously the communication was rubbish and would have been better if they could have just let me know what was going on.
Going to be a rubbish few months til this gets paid off.

tifo

Soconfused14 said:

Going to be a rubbish few months til this gets paid off.

You can call them and make an arrangement to pay less. I had this and ended up paying £15 a month for past 3 years after first few months of approx £100, and now some months ago they started taking £100 a month again after a 'review'.

Same with an overpayment of the child element when circumstances changed mid way in the assessment period, they took back the whole of that months payment even though it was a few days to the next assessment date.

tifo

Soconfused14 said:

I have finally applied for Universal credits thanks to advice from this forum.

You will find that UC is a whole different ball game to tax credits. Good luck to you.

I personally would never have changed to UC but I was given the wrong advice at the time by welfare rights adviser.

Soconfused14

tifo said:

Soconfused14 said:

Going to be a rubbish few months til this gets paid off.

You can call them and make an arrangement to pay less. I had this and ended up paying £15 a month for past 3 years after first few months of approx £100, and now some months ago they started taking £100 a month again after a 'review'.

Same with an overpayment of the child element when circumstances changed mid way in the assessment period, they took back the whole of that months payment even though it was a few days to the next assessment date.

Thanks for that but knew this was coming so put some aside last couple of months so will just be tight not impossible and will only be for 3 months as only owe 3 weeks worth of tax credits