Talk

Advanced search

To think the tax credit system is an utter shambles

(9 Posts)
NormanTebbit Fri 19-Aug-11 16:57:52

we have just received a bill asking for nearly £2000 in tax credits to be paid by end of September.

When DD1 was born seven years agowe received tax credits as DP only earned £10, 000. The following year he earned £30,000, then nearly £60,000 self employed. We got tax credits the first year but since then have had nothing even though we have two more children. We have simply been 'paying off' the credits we were initially given. Neither of us mind this at all.

DPs income is now back to around £30,000. We have a tight budget, high mortgage, high power bills, etc etc

And now they want £2000. I could weep. Seriously.I would rather not have had any money off them at all.

How is this system helping anyone?

midnightexpress Fri 19-Aug-11 17:03:20

So, why do you have to pay them the money? I'm confused. If you haven't received anything, I mean...

If it's any help, we're trying to get them to stop paying us. We've finally got to that point, more or less, but now they want to pay us what they would have paid us, so we can then pay them back next year hmm. And there was me thinking we had a deficit we're supposed to be paying off.

worraliberty Fri 19-Aug-11 17:03:45

Why do they want £2000 I don't understand?

Have they just realised they over paid you 7 years ago?

honeymom Fri 19-Aug-11 17:04:40

Offer to pay them a low amount. My mum is paying £2.65 a week till she is £67

balia Fri 19-Aug-11 17:09:17

Ring and check. The exact same happened to me - I paid back a small overpayment when I came off the credits, then years later was sent a demand for thousands. When I rang, it was for money that had been paid out in a year I didn't claim or get any, to a bank account I had never heard of. The woman on the phone said airily that it must be a fraudulent claim and I wasn't to worry, it would get 'passed on' to the Department that dealt with these issues. She didn't sound remotely worried. I found out later that inactive claims are easy to hack into and restart.

CogitoErgoSometimes Fri 19-Aug-11 17:10:12

Tax credits were a bad idea because they hid the problem of too-low wages for too long and keep people trapped in poverty, reluctant to earn more for fear of losing their tax credits. It was also a bad idea to put the management of a benefit in the hands of an organisation far more used to taking money off people ie. HMRC. They are understandably ruthless at demanding unpaid tax but when they apply this method to people who have been overpaid credits they are accused of being draconian....

gillybean2 Fri 19-Aug-11 17:10:34

Am guessing they paid you based on your dh's tax return and as there is a delay between that needing to be completed/filed and the TC being paid there must have been an overpayment somewhere.

Have you asked them to explain how they calculated this and which year the overpayment relates too? It may be that his accounting year doesn't match the tax year and so there is an overlap on the year and they may have calculted that he earnt more than the 10K the year you received the tax credits.

Are you sure the payments ceased immediately he started to bring in more money? He wouldn't have completed accounts/Tax Return for some time after his year end.

Assuming it is correct and you have to pay it back you can call them and explain that you can't pay by September and work out a payment plan that you can afford.

NormanTebbit Fri 19-Aug-11 17:24:35

I'm not sure about tax returns etc. He has an accountant though who might be able to help.

When DD1 was born we received a large payout and since then 00. They calculate what we should receive then take it away as a 'repayment' for what we received before.

I am utterly confused.

NormanTebbit Fri 19-Aug-11 17:56:42

And the call centre is utterly confused too. hmm

No one understands this system not even those who run it.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now