Tax credits overpayment, advice needed

My ex and I had a joint claim for ESA and tax credits. January this year we split and I left the property. She contacted ESA and and switched the claim to a single claim. As well as housing benefits to a single claim.

She wasn’t aware she also had to contact tax credits to declare that I’d moved out. About 2 weeks ago tax credits stopped paying her. Today I’ve had a letter from Tax credits stating I’ve been over paid by nearly £4000. 

This works out to the entirety of the tax credits my ex has been paid since we split. Is there anything I can do about this?

Comments

  • poppy12345
    poppy12345 Posts: 18,878 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    MetalHead said:
    My ex and I had a joint claim for ESA and tax credits. January this year we split and I left the property. She contacted ESA and and switched the claim to a single claim. As well as housing benefits to a single claim.

    She wasn’t aware she also had to contact tax credits to declare that I’d moved out. About 2 weeks ago tax credits stopped paying her. Today I’ve had a letter from Tax credits stating I’ve been over paid by nearly £4000. 

    This works out to the entirety of the tax credits my ex has been paid since we split. Is there anything I can do about this?

    When you received the tax credits award notice each year on there it tells you that you must report all changes. When you split and moved out this should have been reported as well.
    New claims for tax credit are no longer possible so she can't claim as a single person. This means that there will be an overpayment which you will both be responsible for because it would have been a joint claim. Unfortunately, no there's nothing that can be done about this.
    As tax credits for her have now ended she will need to use benefits calculator to check entitlement to Universal Credit. If she claims this her housing benefit will continue for 2 weeks and then transfer to UC. If any part of her ESA is contributions based this will continue but Income Related will stop after 2 weeks.
  • peteuk
    peteuk Posts: 1,939 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If this was a joint TC claim they may have split the over payment in two.

    It is usually taken from the following years claim (however not in this case). I dont know how far you will get with proving that you moved out but as above your both liable to inform them of changes.

    Contact them and set up a payment scheme or complain and see how far you get with it.
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
  • poppy12345
    poppy12345 Posts: 18,878 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    peteuk said:
     or complain and see how far you get with it.

    Complain about what? They had a change of circumstances and both of them didn't report the changes when they should have. It tells you on the bottom of all letters "all changes must be reported" In my opinion there's nothing to complain about.
  • peteuk
    peteuk Posts: 1,939 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    peteuk said:
     or complain and see how far you get with it.

    Complain about what? They had a change of circumstances and both of them didn't report the changes when they should have. It tells you on the bottom of all letters "all changes must be reported" In my opinion there's nothing to complain about.
    Dont ask, dont get!  If you look again at what I’ve said, I clearly state I dont know how far you’ll get with proving you moved out, but your both liable to inform them of the change.

    Complain yes, to register it, if they are lucky they might get away with it, but equally why should they pay half of what they haven’t received.  
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
  • poppy12345
    poppy12345 Posts: 18,878 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    peteuk said:
    peteuk said:
     or complain and see how far you get with it.

    Complain about what? They had a change of circumstances and both of them didn't report the changes when they should have. It tells you on the bottom of all letters "all changes must be reported" In my opinion there's nothing to complain about.
     but equally why should they pay half of what they haven’t received.  

    The OP was also responsible for reporting the changes, so equally they are both to blame.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.1K Banking & Borrowing
  • 252.8K Reduce Debt & Boost Income
  • 453.1K Spending & Discounts
  • 243.1K Work, Benefits & Business
  • 597.4K Mortgages, Homes & Bills
  • 176.5K Life & Family
  • 256K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.