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Tax credit overpayment query - Do you ever have to pay back or is it always repaid from future years?

(6 Posts)
meemar Sat 29-Sep-07 11:59:43

DH is self employed and we always face a bit of a nightmare in terms of never knowing how much tax credit we should receive.

This year he looks set to earn more than last year so I will phone through with his estimated income. However, last time this happened they didn't stop paying us or reduce our payments. Then the following year (when he earned less) our payments stopped completely, which I wasn't prepared for.

So, if like before they continue to send us the same money until April will I have to pay back the excess or will they just take it from future repayments?

I'm totally prepared for the payements to stop, but not to have to pay back a lump sum. Or should I just start saving the payments up in case they ask for it back?

NoBiggy Sat 29-Sep-07 12:11:18

It's a nightmare. I asked if we could have nothing until we had final figures, then be paid the whole lot in arrears. They couldn't cope with that though. I try to give them a high estimate, so I'll never end up owing, but got it wrong last year.

They have adjusted in the past, but we've had a demand for repayment this year, (Which you've just reminded me I haven't dealt with!)

DaisyMOO Sat 29-Sep-07 16:25:53

If the amount you're entitled to falls below £545 then they can ask for the entire overpayment back, otherwise they should take it back from future awards.

meemar Sat 29-Sep-07 16:32:51

Thanks for replies - been trying to get info from their website, but not very forthcoming. It's all along the lines of 'you must tell us about changes or you may have to pay any overpayments back'.

I know they want to make sure people aren't scamming them, which is fair enough, but it does make the system tricky to work out if you just want to know how much money to expect!

evenhope Sat 29-Sep-07 16:47:37

The disregard figure has been increased to £25k. So as long as his income hasn't increased by more than £25k this year you will be OK. Just make sure you've told them so you get the lower amount from April.

meemar Sun 30-Sep-07 10:33:05

thanks evenhope - no, his income hasn't increased by more than 25K. If only...smile

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