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Tax credits overpayment - ways to pay?

(20 Posts)
Mmlemony Sun 11-Sep-16 10:50:01

We've been told we owe £1100. To add to the nightmare my do has just been laid off work. My question is how best to deal with it. Can I pay it back in one go with credit card and put balance on 0% balance transfer credit card? Do tax credits even allow you to pay by credit card? Ask my parents to borrow the money although I think they will say no? Come to an arrangement with tax credits? If we pay it all back in one go then can we start claiming tax credits again as do is out if work? Would we get more payments straight away?

Sorry for the million questions! Just worried sick and don't know what to do for the best. Thanks so much.

Mybeardeddragonjustdied2016 Sun 11-Sep-16 10:51:52

Offer then a tenner a month. Legally they have to allow you up to 2 years to repay. Or up to 5 if you are willing to fill in an expenditure form. I have done both. . Always their bloody mistake I might add. Don't let them bully you!! All info online.

lightcola Sun 11-Sep-16 10:59:22

Can I ask how and when you found out? I stopped receiving CTC last year due to changed circumstances and I am expecting a bill, however since I returned the renewal form in June I've heard nothing.

lightcola Sun 11-Sep-16 11:00:45

Also it might be worth telling them tour change of circumstances which might reduce the repayment.

Cakedoesntjudge Sun 11-Sep-16 11:03:58

OP, I had this a few years ago when exp left, we owed just over £1000 but the household income had dropped significantly as I had to switch to part time work as couldn't afford childcare on just my wage - I rung up and explained the circumstances, they let me set up a payment plan for the money owed but opened a new claim for me for that year. Give them a call and see what can be arranged.

lightcola I would call them - they have just got in touch with me about £30 that apparently never got paid from the overpayment I just mentioned. Better to sort it out now than get hit with a bill in a few years once you've completely forgotten about it!

mamamiaa Sun 11-Sep-16 11:04:25

I once had an overpayment of a few hundred pound. They just deducted £16 a week from my current claim.

Mmlemony Sun 11-Sep-16 11:12:31

Thanks everyone. I've already called them and they rejected my offer of £10 per month even when I told them about my circumstances. Very unhelpful and mentioned debt collection. I just burst into tears. They don't give a shit. I will offer £20 a month and that's it. I asked about claiming again but she didn't have an answer for that. I found out about this at the beginning of August by letter. I've got until Monday to make a decision.

Mmlemony Sun 11-Sep-16 11:13:13

And yes it was their mistake as I kept them up to date with everything.

Mmlemony Sun 11-Sep-16 11:15:32

Mamamiaa we could no longer claim as we were earning over the threshold but now do has lost his job that will change. So they can't deduct the money from our existing claim.

SoggyWetFlannel Sun 11-Sep-16 11:16:47

Usually they take overpayment repayments out of your new payment plan of you're still claiming. So instead of getting X amount per month you receive Y (X-overpayment) they tell you in the letter that says they've over paid you.

It's an awful place to be, but there are some people on the phone lines who care and are helpful.

SoggyWetFlannel Sun 11-Sep-16 11:18:09

Sorry, cross posts there. There really are people on the phones who will help you come up with a sensible solution. Otherwise, make an appointment with your closest CAB for Monday for proper advice on how to proceed.

lightcola Sun 11-Sep-16 11:48:51

I would call again if I were you OP. I worked in the call centre years and years ago (only for a few days) and they really don't get much training. Some of them don't really know way they are talking about.

Hhmyeahsuremaybe Sun 11-Sep-16 14:11:03

Tbf ,10 quid a month owing 1100 would take 9 years... Ten a week would take 2 years.

Reapply for tax credits asap. As its a new claim elk be two Seperate things, so try and get the dates the go in and out the same do you won't notice as much.

Mmlemony Sun 11-Sep-16 23:16:14

Yes you're right. £10 a month was silly offer so will up it tomorrow.

Does anyone know if you can make a payment by credit card?

YellowShockedFace Sun 11-Sep-16 23:24:57

I am pretty sure that they can take half your tax credits to pay off the debt if you earn over a certain amount.

YellowShockedFace Sun 11-Sep-16 23:27:12

Screenshot from the website.

Hhmyeahsuremaybe Mon 12-Sep-16 10:32:05

if you can do the 0% cc I'd do that to relieve the pressure.

PestoSwimissimos Mon 12-Sep-16 10:36:20

You can pay by credit card but they charge you an extra % - think it's 2%

misscph1973 Mon 12-Sep-16 10:44:02

I am currently paying off overpaid tax credits, £100 per month for the next 5 years. When I phoned them up, the lady was so horrible I burts into tears. I had filled out an expenditure form, and she told me that every item on it was false, that no one spent that much. It was horrible.

We just got another overpaid tax credit letter for the following year, so I have asked my DH to take care of it this time. He is going to write to them (this time it's an agency, not the tax credit people directly).

OP, I suggest you see if you can get some advice from a CAB bureau or similar in your area. And see if you can write to them rather than phone them, some of the tax credit people are horrid.

I would have thought you can pay with a credit card, but I wouldn't advice it. Get a payment plan set up.

reallyanotherone Mon 12-Sep-16 10:47:49

Can you sort out a payment plan online?

We are in a similar situation and im considering paying it rather than deal with the phone call hell!

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