Please help...overpayments!
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Chesterly_frank
Posts: 14 Forumite
I’m really scared right now, I’m in desperate need of some advice.
My husband was earning £27k a year and we were claiming tax credits for 3 children. In the summer, I rang tax credits as my older children was leaving education so no longer eligible to claim for her. All was fine with the tax credit people but it had reduced our payment by 40% plus we lost cb.
We were really struggling financially so I took a part time job, again told them and reduced our tax credits. Just making ends meet so husband went for a promotion which thankfully he got.
Will be earning 37k so rang tax credits. This will make our income £31k for the the year 18/19.
They are saying we have been overpaid as our income is 4000 more than expected (even though we haven’t earned it yet!)
They are sending a letter to say exactly how much. Will we have to pay back a years worth of tax credits?! Does anyone know how paying in instalments work? They won’t tell me anything
I’m worried that they won’t take into account that we could claim for 3 children for the first half of the tax year. I don’t think we will be entitled to tax credits now
Suddenly we’re going to have a load of debt after one phone call! I’ve told them everything as soon as any changes have happened and been totally honest and transparent, I’m so worried has anyone been in a similar situation?
My husband was earning £27k a year and we were claiming tax credits for 3 children. In the summer, I rang tax credits as my older children was leaving education so no longer eligible to claim for her. All was fine with the tax credit people but it had reduced our payment by 40% plus we lost cb.
We were really struggling financially so I took a part time job, again told them and reduced our tax credits. Just making ends meet so husband went for a promotion which thankfully he got.
Will be earning 37k so rang tax credits. This will make our income £31k for the the year 18/19.
They are saying we have been overpaid as our income is 4000 more than expected (even though we haven’t earned it yet!)
They are sending a letter to say exactly how much. Will we have to pay back a years worth of tax credits?! Does anyone know how paying in instalments work? They won’t tell me anything
I’m worried that they won’t take into account that we could claim for 3 children for the first half of the tax year. I don’t think we will be entitled to tax credits now
Suddenly we’re going to have a load of debt after one phone call! I’ve told them everything as soon as any changes have happened and been totally honest and transparent, I’m so worried has anyone been in a similar situation?
0
Comments
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Tax credits is based in your income for the full tax year so it's entirely possible to be overpaid due to an income change mid year. Its the same if someone has a payrise or a bonus.
Your new awards notice will show any possible overpayment. The overpayment won't be finalised until the end of the tax year and the exact income is known.
There's no reason why they won't take into account that you claimed for 3 children for part of the year. Having a change of income doesn't change that fact.
If no longer entitled to tax credits then you'll be sent a notice to pay letter after the end of the tax year and you've completed your annual review. If you can't pay in full then you'll need to call their debt management to discuss installments. The normal helpline don't deal with this. Whether they accept will depend on how much the overpayment is, how much you offer to repay, how long it will take etc.0 -
Totally understand that I’ll have to pay it back, but I’m scared as I just have not got the money at all. I’ve tried to edit image based on online calculators and I’m estimating about £2k.
Does anyone know if there a minimum payment amount, do they charge interest and does it have to be paid back in a certain time frame?0 -
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