tax credit overpayments new report published

Dalkirst

Don't know really never thought of it like that.Her hours do get changed alot and she has not set hours per week as she works in a care home which is short of residents at the moment.I just wanted to make sure we didn't go over really to make sure we didn't owe them anything at the end of the year.

Thanks for the replies:)

CIS

Its different if you are doing it to preveny overpayments where you dont want the hassle or expense of paying it back, I can understand when people do that.

A lot of people take the figures as set in stone and do everything they can not to exceed them , thinking that they will loose a lot of tax credits, that where problems set in.

Dalkirst

True also is it not the case that as we didn't earn as much then and didn't go over that top limit they will not bring down the TC the following year too?
I suppose she could have done overtime some of the time but then there is nothing to say she would have got overtime this year coming up and then we would have got less TC but worked less this year..am i right or is that totally wrong?

DazzerG

No you wouldnt lose out.

Tax Credits are calculated based on your circumstances (these are the 'elements') and you level of income, originally estimated then finalised when you provide your actual income from P60, etc.

If the original estimated income used to calc your award is too high, when you finalise at the end of the tax year you will receive any underpayment due as a single one-off payment. If however your estimate is too low then you will have received too much (overpayment) and next years award will be adjusted accordingly.

Dalkirst

Ok thanks:)

Mikeyblueeyes_2

If you have declared the correct details and they are still trying to claim back the money query it. They overpaid me to the tune of £5K last year even though I had used there online system and given correct details. I queried it and they eventually after 4 months admitted they had made a mistake and eventuall awarded the overpyment and the stopped pyments back to me.

If you can show that you can reasonabley have thought that their payment was correct and you have given correct details I would fight it all the way.

C_Ronaldo

i personally think the whole system should be abolished and a new one set up in its place,

CIS

The problem is that new systems bring new complications and costs - its cost tens of millions just to change everything over - there may be less cost and hassle taking the bugs out of the current system than starting the new one.

C_Ronaldo

valid point CIS

doodledoodle24

I was talking to a lady in the inland revenue office and she said that the tax credits people are not allowed to take any more then 1/5 of you working tax/child tax credit payments off you to pay any overpayments!