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tax credits overpayment letter

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Hoping somewhere can chip in with some info. Just recieved a letter from tax credits stating I have recieved an prepayment of £7000 over the last 3 Years. I don't actually receive tax credits anymore… Read More
mart321 Avatar
10m, 2w agoPosted 10 months, 2 weeks ago
Hoping somewhere can chip in with some info. Just recieved a letter from tax credits stating I have recieved an prepayment of £7000 over the last 3 Years. I don't actually receive tax credits anymore but the letter says that they intend to collect it through reducing my future payments. I have a partner and two small children. Can anyone shed light on what they mean by this?
mart321 Avatar
10m, 2w agoPosted 10 months, 2 weeks ago
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#1
Give them a ring to find out how they've come to that figure, it happened to me back last year they wanted £3500 back after contacting them turned out they owed me money
#2
I would ring them and ask. they can ask for over payments back.
#3
They initially got in touch to say i owed 3.5 K then I got in touch. Now it's 7 apparently
#4
It just doesn't say anything about paying anything back, I'm tempted to just ignore it
#5
mart321
It just doesn't say anything about paying anything back, I'm tempted to just ignore it
Would you ignore it if they owed you money?
#6
Don't ignore it, if you do hmrc can (and very likely will) do an overpayment debt restriction via you tax code and collect it that way. Your best port of call is to contact them, ask what its about, appeal it (if possible) and then at end if it's a legit overpayment and they won't cancel it - claim hardship in paying it over a short period (a year) and request to pay over a number of years
banned#7
majormelchett
Don't ignore it, if you do hmrc can (and very likely will) do an overpayment debt restriction via you tax code and collect it that way. Your best port of call is to contact them, ask what its about, appeal it (if possible) and then at end if it's a legit overpayment and they won't cancel it - claim hardship in paying it over a short period (a year) and request to pay over a number of years


+1 they will just restrict your tax code and collect it that way.

Talk to them and understand why this has arisen
#8
If the letter says
they intend to collect it through reducing my future payments
then you could take that very literally so if/when you qualify again for tax credits they will simply reduce the amount payable to you until the "debt" is repaid.
Look upon it as a free loan! But I suspect it does not actually say this. Their letters are absolutely rubbish at explaining things in simple terms. The reason for the overpayment needs to be provided - at one end of the spectrum it could be because you failed to notify them of any change in your circumstances and at the other end it could be them who made a clerical or computer error. Either way they will want their money back/
I suggest you pop in to your local citizens advice with all your tax credit correspondence and they will support you getting it sorted.


Edited By: tardytortoise on Sep 08, 2016 11:13
#9
Yes I think I will phone them tonight and sort it out.
#10
You'll be fighting a losing battle. I've been at them for over 2 years re my £7000 overpayment. Their whole system is flawed. e.g. they tell you to notify them of any changes immediately, then when you do that and an op has arisen, they say they can't implement the change until the next assessment.!!

They have access to your work and tax records but don't check them as your form is scanned and assessed by computer!!

I could go on and on. Eventually I will go to the adjudicators office, but up to now they're pounding me into submission.

My advice, don't phone, get everything in writing.

https://www.gov.uk/government/publications/tax-credits-overpayment-tc846
banned#11
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.
#12
sofiasar
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.
^^^^^ HUKD's resident benefits & compensation 'expert' oO

Edited By: chocci on Sep 08, 2016 14:17
#13
We don't owe 3.5 K each and that isn't why isn't 7k . I will no doubt work out that we do owe it. Ideally I will pay it back £ 1.36 if so but thats not gonna work out I think, been trying to get in touch for 3 hours, just says all operators are busy and they hang up, don't even put you in a queue.
#14
mart321
We don't owe 3.5 K each and that isn't why isn't 7k . I will no doubt work out that we do owe it. Ideally I will pay it back £ 1.36 if so but thats not gonna work out I think, been trying to get in touch for 3 hours, just says all operators are busy and they hang up, don't even put you in a queue.
so what is preventing you getting help from Citizens Advice? post #8
#15
sofiasar
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.

I think it's very dangerous to state something like that as fact without actually knowing the story. Your post is just a wild assumption.
#16
mart321
We don't owe 3.5 K each and that isn't why isn't 7k . I will no doubt work out that we do owe it. Ideally I will pay it back £ 1.36 if so but thats not gonna work out I think, been trying to get in touch for 3 hours, just says all operators are busy and they hang up, don't even put you in a queue.
£1.36? oO
#17
tardytortoise
mart321
We don't owe 3.5 K each and that isn't why isn't 7k . I will no doubt work out that we do owe it. Ideally I will pay it back £ 1.36 if so but thats not gonna work out I think, been trying to get in touch for 3 hours, just says all operators are busy and they hang up, don't even put you in a queue.
so what is preventing you getting help from Citizens Advice? post #8
Nothing, but I would like to speak to tax credits first before doing anything like that, just to see where they have got their figures from
banned#18
You got the letter because you did not submit the annual return/declaration. So they are trying to reclaim the money they gave you for the last year you were paid.


Edited By: YouDontWantToKnow on Sep 08, 2016 19:05: c
#19
YouDontWantToKnow
You got the letter because you did not submit the annual return/declaration. So they are trying to reclaim the money they gave you for the last year you were paid.
Yea, I got that letter, it said we owed, 3.5 K, so I got in touch and gave them some info, now it's 7k lol
#20
Mmm... we fell into the trap some years ago, I think they took back £4,000 from us, can't remember over how long but luckily our fortunes changed a bit and we could afford. The thing with these things is you don't notice they are giving your extra, it's not as if it pays for holidays and cars. But you certainly notice when they reduce your money to get it back. So good luck with it, try and string it our as long as you can.
banned#21
miikeyblue
sofiasar
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.

I think it's very dangerous to state something like that as fact without actually knowing the story. Your post is just a wild assumption.


sorry but did I mention I worked for tax credits ??? !
banned#22
chocci
sofiasar
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.
^^^^^ HUKD's resident benefits & compensation 'expert' oO


and what advice would you like?? how to claim disability allowance??
#23
sofiasar
miikeyblue
sofiasar
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.
I think it's very dangerous to state something like that as fact without actually knowing the story. Your post is just a wild assumption.
sorry but did I mention I worked for tax credits ??? !

You don't work for tax credits - but you did state your thoughts as a fact.
banned#24
miikeyblue
sofiasar
miikeyblue
sofiasar
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.
I think it's very dangerous to state something like that as fact without actually knowing the story. Your post is just a wild assumption.
sorry but did I mention I worked for tax credits ??? !
You don't work for tax credits - but you did state your thoughts as a fact.

To be fair the only reasons anyone can owe tax credits £7k is giving false information, not telling them of a change of circumstances or failing to complete the declaration at the end of the financial year.
#25
YouDontWantToKnow
miikeyblue
sofiasar
miikeyblue
sofiasar
you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
did you even give accurate income for the 3 years ??? we're you single within the 3 years? 3 years is alot and so is 7k! next time try and give accurate information every year as it's a big risk.
all you can do is appeal but I don't think that will work because they will only look at your claim again.
I think it's very dangerous to state something like that as fact without actually knowing the story. Your post is just a wild assumption.
sorry but did I mention I worked for tax credits ??? !
You don't work for tax credits - but you did state your thoughts as a fact.
To be fair the only reasons anyone can owe tax credits £7k is giving false information, not telling them of a change of circumstances or failing to complete the declaration at the end of the financial year.

Oh, absolutely, I don't dispute that. It's this bit I disagree with:

you owe 3.5k each , that's why it's 7k. they will get the second 3.5k from your other half.
#26
I had a letter saying I owed 2k once because apparently my husband divorced me oO called them up asking how they figured that out as we were still together. took 2 years for them to sort it out and apologise in a round about way. so op don't hold your breath for a speedy resolution as they really drag their heels.

but yes as others have said you really do need to update your info every year. If the over pay you one year they normally reduce your payments the next year to recoup their losses but if you haven't been updating your info then the losses can exceed the payments into eye watering amounts. good luck though with sorting it all out.

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