Tax credit 90% repayment wanted knowbody can tell me why ?

sausagesurfer

Hello mse forum.
I have a bit of a story which maybe simple for some to figure out but Hmrc and DWP cant tell me why?

I will keep it as short as possible 
2023-2024 payments just over £3000 for the year child  Tax credit
3 children age 10 10 12
earnings  47k

they sent me a letter a while ago saying over payments have been made we have to pay back around £2600 of the £3000

i have been doing this then after doing a little math worked out that would mean the entire year would be around £470 or around £9 per week  or £3 per child . 

hmrc and dwp cant seem to explain anything other then a recalculation was made due to 47k earning but they cant say or see why they are retrieving  90% back ?

I understand earn more get less with overtime etc .

so is anybody else on 47k a year getting 2023-24 9pw for 3 children as it doesnt make sense as now on UV on 47 k they are paying over 3k a year as they did before ?

something seems very wrong can anybody enlighten me as dwp and hmrc keep passing the book ?

thanks in advance for any help

S

sausagesurfer

update earnings were 45k not 47

sausagesurfer

And again just now after being told to ring dwp they have now said they cant help i need to speak to hmrc to fix the problem its getting more and more odd so something cant be right or i would have been told call one,
not fobbed off back and forwards ?
Ill set aside another hour in the morning and go back to hmrc. ???????

sheramber

Your first award notice is based on the your income for the previuos year.

This is reviewed after the end of the tax year and if  your income is different , then the award will be recalculated.

If your income is higher by more than £2500 then an overpayment will arise.

You are advised to update your income information if it is going to be higher than  the one the award is based on to avoid being overpaid.

Can you compare your initial award notice for 23/24 with the final notice.

You can ask HMRC for  information they hoid about you through a SAR request

https://www.tax.service.gov.uk/shortforms/form/DPU_SAR

sausagesurfer

sheramber said:

Your first award notice is based on the your income for the previuos year.

This is reviewed after the end of the tax year and if  your income is different , then the award will be recalculated.

If your income is higher by more than £2500 then an overpayment will arise.

You are advised to update your income information if it is going to be higher than  the one the award is based on to avoid being overpaid

I understand the award changing based on previous earnings and new year going up with overtime-
i am at the point now where i believe the recalculation is wrong .
it was based on a 38 k year and i earned 45k extra 7k .
because of this they asked for 90% of the 3k they paid back ?
which will work out at over the year around £9 a week

As hmrc and dwp cant tell me why i will  asking for a refund of the £1700 iv paid back unless they can give me infomation which i have been asking and asking and asking for as to how they came to a sum of £470 for the entire year

Now on uc so each month they do the sums they know i am now on 47k and it will work out just over 3k a year untill the children grow up.

thanks for the form 

s


 

peteuk

TC is calculated on a yearly basis and then divided into 13 payments.  At the end of the year they reassess the claim.  Any increase in wage effects the whole year so if the pay-rise is significant then it means you’re not entitled to TC for the whole year, not just for the period after the pay-rise. 

sheramber

How long ago did you get notified of the overpayment as you have 3 months  to appeal it.

https://www.gov.uk/tax-credits-appeals-complaints/dispute-tax-credits-overpayment

Northern_Wanderer

For 2023-2024 child tax credits, your elements are likely:

£545 family element + 3x £3235 chile element = £10250 total elements

The income threshold for (EDITED CHILD) tax credit only claims is £18725, income over this is deducted by 41p per £1

On an income of £45000 - 18725 = £26275 over the threshold, this is multiplied by 41%  = £10772.75 deduction from award, as your award is £10250, this wipes out your award. Therefore you have been overpaid as you didn't qualify for tax credits and presumably didn't tell them about your change in income.

On an income of £38000 - 18725 = £19275 over the threshold, this is multiplied by 41%  = £7902.75 deduction from award, as your award is £10250, this gives an award of £2347.25.

Does that help you?

Yamor

Assuming that you were entitled to the 30-hour element of WTC, but no disability elements, nor any childcare, then when your award was based on the previous year income of £38k, you would have expected to receive about £3.3k in tax credits over the 23-24 tax year.

With an actual income in 23-24 of £45k, actual entitlement would go down to about £1,460, and with an income of £47k, it would be about £640.

Icequeen1

Northern_Wanderer said:

For 2023-2024 child tax credits, your elements are likely:

£545 family element + 3x £3235 chile element = £10250 total elements

The income threshold for tax credit only claims is £18725, income over this is deducted by 41p per £1

On an income of £45000 - 18725 = £26275 over the threshold, this is multiplied by 41%  = £10772.75 deduction from award, as your award is £10250, this wipes out your award. Therefore you have been overpaid as you didn't qualify for tax credits and presumably didn't tell them about your change in income.

On an income of £38000 - 18725 = £19275 over the threshold, this is multiplied by 41%  = £7902.75 deduction from award, as your award is £10250, this gives an award of £2347.25.

Does that help you?

The OP is working, so it isn't a CTC only claim so the joint threshold needs to be used and WTC elements included. Yamor has explained it on their post. 

sausagesurfer

sheramber said:

How long ago did you get notified of the overpayment as you have 3 months  to appeal it.

think it was may 24 and have been paying back around £155 a month since -
if were are not eligible i get it but we are now on UC 3 children on almost exactly the same as when we on TC earning more money now and this is worked out each month -
?