Overpayment of Working Tax Credits

Truegho

I got a letter from DWP Debt Management in Trafford claiming that I owed an overpayment of Working Tax Credit dating back THREE tax years! They have now set up an Attachment of Earnings order with my employer. I do not owe this amount, and so have emailed HMRC a Subject Access Request via their website.

Is this the right step to follow for disputed overpayments of Working Tax Credits?

Devongardener

Have a received a breakdown of the calculation of the overpayment?  Attachments of Earnings orders are not normally imposed without notice and details of how the overpayment arose. 

peteuk

I would contact them and pin point where the overpayment is, to be honest three years is a relative short time when it comes to WTC overpayment. 

When you contact them ask for a hold to be placed whilst you look into it.  Once youve done this you can go back to them and request a payment plan.  

You could dispute the overpayment however they are likely to have advised you of this in the following years WTC award, and you’ll be outside of the timeframe to complain. 

Warning - if it was a joint claim then the amount may have been halved between yourself and the other claimant.   So do check on this as well. 

chanz4

I got one this week as just migrated to UC, so where they want it back of ctx, I will be claiming off UC so pointless

sheramber

chanz4 said:

I got one this week as just migrated to UC, so where they want it back of ctx, I will be claiming off UC so pointless

They will ask DWP to deduct it from your UC payments

peteuk

chanz4 said:

I got one this week as just migrated to UC, so where they want it back of ctx, I will be claiming off UC so pointless

Is that for this current year or a previous year.

Migrating from TC to UC gives you an in year TC review, had you not claimed UC then your TC would stop and the end of year review would have been at April.  Moving forward all you earns are now assessed by UC on a monthly basis.  So the end of year TC calculation should only have taken into account earnings received up until your transition date. 

If it’s historical then follow the advice I have given above.  Either way if they are taking it from your UC contact them and see if you can agree a repayment plan. 

Truegho

Devongardener said:

Have a received a breakdown of the calculation of the overpayment?  Attachments of Earnings orders are not normally imposed without notice and details of how the overpayment arose. 

I received my Subject Access Request Data from HMRC today. I will now peruse every detail they set out and respond accordingly.