Tax Credits Overpayment help.....

poppyscorner

Hi all,

We (my DH and I) claim ctc and the childcare element of WTC to pay for nursery care for our youngest son I work full time and my husband is self employed I work in the NHS and have had my agenda for change pay sorted out last financial year which gave me a couple of thousand over my predicted earnings this will have generated an overpayment and I just wondered if anyone could tell me how the tax credits will recoup that overpayment I use my tax credits to pay for my sons nursery care and I am worried if they collect it all back in 08/09 I won't have enough to continue that. I accept its my fault we will have been overpayed and it goes without saying they need the money back I just want to know how they will do that.

Any advice appreciated
Poppy x

[Deleted User]

If you have only earned a few thousand more than you did in the previous tax year and you have not lowered your estimated income through the year you will not have been overpaid.
You are allowed to earn up to £25k more than you did in the previous tax year without it causing an overpayment. You only lose the right to this "buffer" of £25k if you have previously lowered your income estimate which would have resulted in your award increasing.

kurjam

subsoniccoyote wrote: »

If you have only earned a few thousand more than you did in the previous tax year and you have not lowered your estimated income through the year you will not have been overpaid.
You are allowed to earn up to £25k more than you did in the previous tax year without it causing an overpayment. You only lose the right to this "buffer" of £25k if you have previously lowered your income estimate which would have resulted in your award increasing.

so should i not inform tax credits that my income this year is more....
for 07-08 it was apprx £5300 for this year 08-09 it will be £10,000 due to coming of benefits and working full time, they know i am working....
should i wait till i get an annual review pack next year or inform them before that ?? thanks

DaisyFlower

Although there is a dis-regard, the site does state to inform them of any changes so I would let them know asap.

[Deleted User]

You should inform them as soon as you can, it may not affect your award straight away but it means that as soon as we reach the start of the next financial year they can adjust your payments accordingly immediately without you being overpaid whilst waiting for you to complete the declaration next year.

irishanny

I was overpaid almost 2000 while I lived with my ex..now we have broken up..Inland rev are looking to me and me alone for repayment as he has not worked for a very long time...what can I do to make him pay his portion?

[Deleted User]

They will pursue BOTH applicants in a joint claim. If he is unemployed they cannot force him to pay right now. In the mean time you can ask them to set up an arrangement to take half. Once this is paid back they will unfortunately start to pursue BOTH again to try to get the remainder back.

If you can get them to accept half and get them to put the acceptance that they will only pursue you for half of it in writing you may get away with paying just the half but this is very unlikly to happen.

If you find out he has got a job in the mean time you could always update the overpayment dept who may then try to chase him up.