Overpayment - at my wits end, need advice!

tx2online

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 as such.

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!

Tarasam

Have you spoken to the Time to pay section yet, if not i would ring the normal helpline and ask for it. As they've now requested the money i think you CAN make an arrangement.

sjaypink

you should still receive tax credits until next summer.
yes you can ask for a breakdown of exactly what is owed from where (good luck getting one though- im still waiting from mine for the 2003/04 claim!).

sorry i cant help any further than that. my only advice to anyone having problems with tc is to do everything in writing. dont even bother trying to sort things like this out over the phone (a breakdown of the debt i mean).

however you do need to find out why they say you are not entitled to tc for your daughter next year? is it because of a higher level course? ring them up and ask for an explanation. make sure you make a note of date, time and name of advisor.

good luck x

System

Your award notice for 08/09 will show that your CTC for your daughter will end. That is normal and you are expected to contact TCO and Child benefit sometime in July/August to advise them that she is going to be continuing in Full Time Non Advanced Education.

If your claim has not yet ceased I don't understand why they are asking you to pay back £3500 now unless the overpayment is from a previously terminated claim.

TCO have a time to pay section and by providing income and expenditure details they will negotiate a payment plan with you.