Here's something different! Underpayment

gillian0808

Hi
I was wondering if anyone has ever been underpaid by the Tax Credit system?

I guess this might seem a strange question as so many have been overpaid, but in the past I have faithfully reported every time we have had a change of circumstances and ended up in the middle of a nightmare.
I wont bore you with this but because of this I have not told them that my Husband changed jobs a while ago and has earned much less money than our original award was based on. (maybe as much as a few thousand pounds).

Now before any one jumps on me from a great height, I AM aware that I should notify them every time I have anything to declare, but I refuse to call them through fear of a repeat of the past.

So, what will happen to the 'unpaid' money? Will I receive it or is it my own fault for being so judgmental?

Many Thanks to anyone who may be able to answer this.

Gillian

[Deleted User]

You should at least notify of the change of jobs throughout the year. If there is a check done by TCO they can find out that he is not working for the company that it on your claim. If you dont confirm the new employment details they can end his work details and you will end up overpaid.

If you aware that you should notify them, you should be doing it - failing to report a change of circumstance could land you with financial penalties. TCO only need to backdate the new work details 93 days but they will end the old job on the exact date it actually ended.
So for example, if he changed jobs 6 months ago they would end the old work details from that date. Then when they add the new job on to the claim it would only backdate 3 months (93 days).

You will receive any underpayment once you have completed your annual renewal declaration, but you may not receive anything as it would be dependant on how long ago your partner changed jobs.

Eager_Elephant

A few years ago I did not notify of a decrease in income because I couldn't do with the hassle. When I completed the review pack I put down the lower income and got an underpayment of £600+.

EE

Gemmzie

I've been underpaid by about £1000, grrrrr

Ophie

I was underpaid and have just received a payment of £650 and my weekly payments have increased until they have caught up with themselves.

They have always been very helpful when I have called them and I haven't been in a queue either, they have worked out the underpayment there and then on the phone and told me exactly how much I should be expecting on what date and the sum total as well as individual totals. They also worked out when I needed to call them againt o advise of a change...

I've not had any problem with them at all, but I appreciate other people have.

bestpud

We had an underpayment one year too. DH didn't change jobs but his income dropped over the course of the year.

They just gave it to us in a lump sum once that years award was finalised.

nellsbells

I was underpaid by £2400.00 which I have got back
through the help of my local tax office

But I am still waiting for £1000.00 back on wrongly
taken repayments

But it is very difficult to get past the person on the
phone who beleives their computer screen can never be
wrong

Got this settled about 8 weeks ago and NOW:mad: they
are at it again and I have had lesser payment since the
start of new tax year so have an appointment book with
tax office for Tuesday morning as now of my circumtances
have changed it appears to be another snare up.
Im already on postal order payments maybe they will have
to pay me cash every week !!;)

northernlass_2

we were underpaid in 2005 and after several phonecalls and visits to our local tax office we started getting weekly giro payments which we had to collect at a 24 mile round trip, this went on for about 3 months then we received a payment into the bank for £400+ and a letter stating it was to bring us up to date and our giros would end on ? date, we were over the moon. the following year we put in our annual review and our payment dropped by £16 a week because of an over payment and would be reviewed at our next review, the payments didnt change so my OH contacted them as by now we had paid back over £800, ths was in 2007 and our payment are now £21 less than we should be getting (we only get child tax credits) so now we have paid back about £1600 and it is still rising, we have given up calling them now as any advisor you speak to cant see past their computer screen and make calculations themselves so we are not getting any further.
my hubby and i have split up now and i cant bring myself to call and tell them of my change in circumstances incase they take more off me and i cant live on less so i am going to wait until i receive the annual review letter, so i understand your reluctence to advise them of your change.

[Deleted User]

northernlass wrote: »

we were underpaid in 2005 and after several phonecalls and visits to our local tax office we started getting weekly giro payments which we had to collect at a 24 mile round trip, this went on for about 3 months then we received a payment into the bank for £400+ and a letter stating it was to bring us up to date and our giros would end on ? date, we were over the moon. the following year we put in our annual review and our payment dropped by £16 a week because of an over payment and would be reviewed at our next review, the payments didnt change so my OH contacted them as by now we had paid back over £800, ths was in 2007 and our payment are now £21 less than we should be getting (we only get child tax credits) so now we have paid back about £1600 and it is still rising, we have given up calling them now as any advisor you speak to cant see past their computer screen and make calculations themselves so we are not getting any further.
my hubby and i have split up now and i cant bring myself to call and tell them of my change in circumstances incase they take more off me and i cant live on less so i am going to wait until i receive the annual review letter, so i understand your reluctence to advise them of your change.

The advisers do not do the calculations. If you are on manual payments it is done by the calculations/payments dept.

As you have not informed TCO that you have seperated from your partner you are claiming fraudulently.

If you wait until the annual review you will be further overpaid.
If you call now there will still be an overpayment that will have to be arranged to pay back but they will be able to sort a fresh claim for you as a single person over the phone.

If you do not inform them that you have seperated soon and they find out you may be prosecuted.

raq

Ophie wrote: »

I was underpaid and have just received a payment of £650 and my weekly payments have increased until they have caught up with themselves.

They have always been very helpful when I have called them and I haven't been in a queue either, they have worked out the underpayment there and then on the phone and told me exactly how much I should be expecting on what date and the sum total as well as individual totals. They also worked out when I needed to call them againt o advise of a change...

I've not had any problem with them at all, but I appreciate other people have.

Me too I have always been lucky with the wftc . Never a problem. Oh and also had an underpayment

mum_to_izzy

I was underpaid about 18months ago, they had some figures wrong or something. I didn't realise I was being underpaid and until I received a cheque for £1400.

I was dubious at first, but after several calls and letters it was correct. The money is still sat in an account just in case!