Tax Credit Overpayment 7 November 2022 at 2:22PM in Benefits & tax credits 3 replies 164 views

newcastleTSF

I have claimed Tax Credits for over 10 years while the kids were young. Working 16 hours while the husband worked full time, but both in low wage jobs. 

In July of this year I got a new full time job, this ment we were no longer eligible for Tax Credits. 

I informed TC the day I left my job, a Friday. And on the following Monday I told them I had started my new job.
They are staying I have been overpaid, however April til July I needed the TC as I was on a low income. 

Will they not allow for this? Been told nothing will be done til the end of this tax year, but I am starting to worry.
Has anyone else had the same thing?

annabanana82

newcastleTSF said:

I have claimed Tax Credits for over 10 years while the kids were young. Working 16 hours while the husband worked full time, but both in low wage jobs. 

In July of this year I got a new full time job, this ment we were no longer eligible for Tax Credits. 

I informed TC the day I left my job, a Friday. And on the following Monday I told them I had started my new job.
They are staying I have been overpaid, however April til July I needed the TC as I was on a low income. 

Will they not allow for this? Been told nothing will be done til the end of this tax year, but I am starting to worry.
Has anyone else had the same thing?

This is correct as it is based on your annual salaries. You will have to pay it back but this may not be until next year or even the year after. 

I am in the same  position this year but I knew it was going to happen so put the money aside for it to be paid back eventually. Perhaps start putting a little aside to go towards the overpayment.

peteuk

newcastleTSF said:

I have claimed Tax Credits for over 10 years while the kids were young. Working 16 hours while the husband worked full time, but both in low wage jobs. 

In July of this year I got a new full time job, this ment we were no longer eligible for Tax Credits. 

I informed TC the day I left my job, a Friday. And on the following Monday I told them I had started my new job.
They are staying I have been overpaid, however April til July I needed the TC as I was on a low income. 

Will they not allow for this? Been told nothing will be done til the end of this tax year, but I am starting to worry.
Has anyone else had the same thing?

TC are calculated from April to March on an estimated income. At the end of the year they will recalculate the award based on your actual income.  So in this case after April 2023 they will recalculate your claim and will advise you of any over payment.

Usually any overpayment is take from your next years claim, but in your case there wont be a claim next year.  Once you are aware of the overpayment, if any you can pay this off in instalments.

sheramber

Tax credits do not split the year.

The amount awarded is based on the actual amount for the year.

Unfortunately, no allowance is made for the fact  that your income was less for the first few months of the year.