tax credit overpayents

jhig712419

me and ny wife have jointly earned £5,000 more this year than last year when we recieved our p60

i work full time and my wife works part time our joint income is £30,000 pa combined we claim tax credits for 2 children

our award last year was £1278.52

due to a overpayment the previous year this worked out m wife recieved £25 a week for the children.

my concerns are as follows

how much overpayment are we likely to be charged

i dont mind working overtime to reimburse her £25 a week she gets now but thinks she is going to lose.

if we get a overpayment can they completely stop her money and also ask for more back if so that would mean me working overtime to compensate the wife losing out on tax credits and also working overtime to pay of the overpayments, surely it would be better of for me and the wife to wipe our hands of the tax credits and not bother claiming at all

xxxMistyxxx

If you have a current Tax Credit award any overpayment is recovered from that, you will recieve a notice about ur overpayment & will tell u exactly how much, but if you ring the help line they can tell you over the phone how much it is.

But you have to remember that they can use either the Tax period the award is for income or the previous tax periods income if it is lower (& the difference is less then £25000). So your income increase may actually only affect the 08/09 award period, so best to give them a ring & find out before you worry about it

tx2online

xxxMistyxxx wrote: »

If you have a current Tax Credit award any overpayment is recovered from that, you will recieve a notice about ur overpayment & will tell u exactly how much, but if you ring the help line they can tell you over the phone how much it is.

But you have to remember that they can use either the Tax period the award is for income or the previous tax periods income if it is lower (& the difference is less then £25000). So your income increase may actually only affect the 08/09 award period, so best to give them a ring & find out before you worry about it

We had an overpayment of something like £6000 as I declared £0 income when starting my first year of self employed business some years back.

6 years later, I am now back on PAYE, but our tax credits have been paying off the overpayment, so we haven't been receiving any.

However, they now say we are not entitled to tax credits after July this year despite the fact my daughter is not yet 18 and is still at college. She is 18 next January, but will be at college till Jun/Jul '09

In addition, they say we still owe £3500 overpayment and we must pay it back now!

I am at my wits end about this. We only have a joint income of about £25,000 and most of that is spent on the cost of living. There is no way I could afford to pay it back in one go.

What are my options?

Can I tell the IR how much I am willing to pay back a month, or will they set a figure and take it out of our PAYE?

Can I insist on a thorough breakdown of the overpayment or do I just have to accept what the IR say? What is likely to happen if I don't pay it back in one go?

I don't believe it was the IR's fault that we got overpaid, that was down to me declaring a low income one year, but I have no way of truly knowing if the figures are accurate or not.

No-one I called seems to care about giving me an answer, it's just a job to them and I'm just a number.

Someone please help, this is affecting my health worrying, and I'm about ready to give up!