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I've been stupid RE Tax Credits

(115 Posts)
IsItOKToPanic Thu 01-Feb-18 14:32:27

I've NC'd and made a new account for this one..

I know I'm going to get flamed but I need some information.

DP and I are claiming tax credits as we have 1 DC. We get approximately £400p/m. When it came to renewing in July I truthfully put our annual income down for the previous year and as DP was on a temporary contract, I said that the figure was unlikely to change.

DP has had a new job as of October last year. Taking our annual income to £25k. I haven't declared this yet as I'm terrified of what might happen and we needed the money.

I'm thinking of telling them in April when we get DPs p60. DP thinks we should just leave it until we renew in June.

Does anyone know what will happen? Will I go to prison? Will they just take money out of my bank? Please anyone with experience of this? Any advice welcome.

Cakedoesntjudge Thu 01-Feb-18 14:35:52

You'll just end up owing them money I would imagine, I don't think you've actually broken any rules unless you lie on the renewal. It's good practise to tell them as soon as a change occurs and they prefer it because it means you don't owe them anything then, but I don't think what you've done is technically illegal (could be wrong, not sure). But I don't think they'll do anything per se, just be prepared to be hit with a massive bill (but you can pay in instalments). You won't go to jail!

MyDcAreMarvel Thu 01-Feb-18 14:39:38

There is no deadline for income increases, it is fine to wait until renewal. However you will have an overpayment so budget for that.

EatTheChocolateTeapot Thu 01-Feb-18 14:40:41

I think you just need to phone them to clarify, I think that if you phone before they enquire about anything you won't have any negative repercussions, they'll just adjust the amounts if needed.

MyDcAreMarvel Thu 01-Feb-18 14:40:43

You tax credits will be reduced to pay off the overpayment. Or if not entitled to any after renewal you can pay in instalments.

Pickleypickles Thu 01-Feb-18 14:41:01

You will have to pay any extra they have paid you since your dp got a job - they usually stop them until your debt is paid if you have other income.
The sooner you sort it the easier.

Owlettele Thu 01-Feb-18 14:42:49

Youll just end up having to pay everything back not entitled to so budget for that to happen. Tax credits will stop and youll be paying them.

Monoblock67 Thu 01-Feb-18 14:44:28

Phone them today and tell them about the new job, then the sooner it’s sorted they can work out a repayment plan for you. If you leave it till renewal you’ll end up with even more to pay back!

IsItOKToPanic Thu 01-Feb-18 14:47:11

Thank you, that reassures me slightly. Will they accept instalments? I don't think we'd be entitled to tax credits so hav ing them reduced won't be an option

Glumglowworm Thu 01-Feb-18 14:47:55

You’re obviously stressed about it, so why not phone them now? The longer you leave it the higher any overpayment will be so the more you’ll have to pay back.

Bearfrills Thu 01-Feb-18 14:48:03

There's no deadline for reporting a mid-year income change as this would be picked up during the renewals period anyway but the longer you leave it, the bigger your overpayment will be.

Elementtree Thu 01-Feb-18 14:51:46

Do you repay the overpayments with interest?

FooFighter99 Thu 01-Feb-18 14:52:17

Tell them ASAP!!

I'm currently paying back nearly £7k as we were overpaid DESPITE filling in the renewals correctly sad

The longer you leave it, the worse it will be and the more you will owe!!!

Battleax Thu 01-Feb-18 14:53:53

Calm down. It's not unusual.

Marriedwithchildren5 Thu 01-Feb-18 14:57:35

I owed £290. I paid back in instalments. They were more than accepting of me naming what I could afford.

Helllllooooooo Thu 01-Feb-18 14:58:39

I would call and tell them.
Next renewal they will either
Ask for monthly big instalments
Stop paying you all together

Not worth it

milkjetmum Thu 01-Feb-18 15:00:53

Same here, despite giving correct info we were overpaid and now paying back in monthly installment until summer 2019. The whole system is a nightmare and can't cope well with changes in income or status, even when you tell them!

Groovee Thu 01-Feb-18 15:04:22

I had to pay back money and they accepted instalments. It's now finished. I'm already due them £170 for this coming year apparently. No idea how as I got about £32 for 2 months before they stopped them 😡

catslife Thu 01-Feb-18 15:07:48

You need to call them as soon as possible OP. If your OH only started this new job in October then your income up until the end of March should still mean that you are entitled to CTC and possibly WTC for 2017-18. The clawback above approx £16k is 41p for every £1 earned. See link
It's complicated though as the threshold for CTC is higher than that for WTC. So for 2018-19 you could still be entitled to Child Tax credit.

MyDcAreMarvel Thu 01-Feb-18 15:10:52

No interest Elementtree.

doleritedinosaur Thu 01-Feb-18 15:12:41

Use the entitledto website to see roughly what you are entitled to but ring them up today to stop the overpayment growing.

I had to pay back an overpayment last year even though it was their mistake but they will take instalments.

YetAnotherUser Thu 01-Feb-18 15:12:55

Sooner you sort it, the less of an overpayment there will be.

MrsFantastic Thu 01-Feb-18 15:13:45

Tell them ASAP. There will be overpayments, which you'll need to repay. However, it is usually taken from current awards over a period rather than requiring a lump sum.

Delaying telling them would just lead to a bigger overpayment.

FlyingElbows Thu 01-Feb-18 15:19:43

Op you do know that the Tax Credits now access your details automatically at renewal time? When your husband's income details are registered at tge end of the tax year they will have that info and generate your renewal based on it. By not telling them you're just delaying the inevitable and you'll end up owing more. Nothing bad will happen, they'll just adjust the figures and re-calculate your payments. If you owe them anything they'll deduct it from future payments. Nobody's taking you to prison. You can report a change in circumstances online I think (once you do the official registration), you don't even have to phone them.

milkjetmum Thu 01-Feb-18 15:19:47

Fyi they don't automatically offer repayments, but instead will just send a letter saying you owe them x amount. So I have received two terrifying letters saying I owed £1000+ each time. But you can phone and ask for repayments instead, which I have been given each time, but 2nd time I had to really push to get a manageable repayments hurts my pride but I cried at their recommended repayment

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