Child Tax Credit overpayment help

motorcycle_emptiness

Hello,

New here! And desperate for some help please.

In January I received a letter stating I had been overpaid child tax credits for the year 2021 - 2022.

Heres where it gets a bit tricky!

I have been on tax credits for a good few years, returning my annual decalration every year with no problems.

BUT this time I did not complete the renewal pack as neither of my children were going to be returning to education. Therefore I knew for the upcoming year I would not qualify for tax credits.

So I didnt return the form. Thinking that this was the way to end my tax credit claim.

What I never realised that this was also the declaration to confirm the years income of my partner and my carers allowance.

I have tried to explain to tax credits, that yes I didn't send the form back, but not to fiddle anything but because I knew i couldn't claim. Naivety on my part at the very worst. And I had a lot of contact with them trying to get them to reactivate my account so that I could confirm the previous income and then that would close my claim legitimately with no outstanding debt. As we were qualifying.

So now it has gone to Advantis as a debt to be collected.

I am willing to set up a payment plan to stop any proceedings whilst I fight Tax credits still.

How likely am I to get any understanding from HMRC for the mess up? I know they have access to our income, as my partner has a wage and I was only receiving carers.

What a mess, what can I do?

Thanks so much

ME

peteuk

First first off breath!.  Sadly they will be unlikely to let you off, however you can do one of three things.

1) If claiming other benefits Uc for example they will reduce you payment, this can be done in small amounts.
2) If not claiming then contact them set up a payment plan and pay it off at a level you are comfortable with.
3) Ignore it for the time being and wait till they chase it…this can take years but will probably come back at some point.

Above all I do either 1 or 2… but talk to them.  I’m paying mine back at £25 a month.  But it’s important if to remember if it goes to collection and it’s a joint claim, the amount is split in two and they can chase you both for your half.

Hope that helps.

sheramber

In January I received a letter stating I had been overpaid child tax credits for the year 2021 - 2022.

What did you do in January , when you received that letter?

Any appeal should be submitted  within 30 days of receiving the notice.

Yamor

Are you sure the overpayment is for the 21-22 tax year, and not for the money they would have paid you AFTER 5th April 2022?

If you are sure, then what has caused the error? Why do HMRC think your income in 21-22 was higher than it really was?

sheramber

The OP has not said what year she did not renew.

If it was 20/21  then payments from April 21 to when payments ceased would be overpaid and would fsll into 21/22.