Tax Credits questions

[somanyquestionssolittletime]

I updated my circumstances using the online service. Date of change was end of October, so I've let them know within 3 weeks. Living with partner now so no longer entitled. I know my payments will stop immediately, that's fine.

Now when I view my online account, it says "you cannot use this service". Is this simply because I am no longer getting tax credits?

Also, will I be liable to repay anything back to them? As far as I know, my claim has been accurate up to end of Oct and I let them know in a fairly timely fashion about the change. Change of circumstance is now living with my partner so not related to my earnings. Worried I'm going to get a letter demanding loads of money!

If anyone has insights into how this works, would be most appreciative.

Bump. If I should post this elsewhere more appropriate, please do let me know.

With tax credits its based on an entire tax year, so if you're no longer entitled now I'd because you've moved in with a partner (joint income too high) then I would assume you'll end up owing everything you've received so far this tax year. Someone more knowledgeable will be along to correct me though 😅

Once they stop your tax credits, they do stop you accessing the online service. Have you tried phoning them?

You will probably end up repaying what you have had since April. It is calculated on yearly household income.

Your best bet is to call the tax credits helpline to check.

There will probably be a delay in the final calculation - for claims that stop mid-tax year (as yours has) I'm not sure whether they do the final calculation straight away (which could still be slow) or wait until the end of the tax year ie April 2021. Hopefully the former. If you are in paid employment they will be able to use the information they get from your employer (when they report payroll info to HMRC) but you could also send copies of your payslips for April-Oct 2020.

As long as there have been no significant changes in your income in the last 18 months or so, and you notified them of the change promptly, you're unlikely to have a big overpayment of tax credits. If there is an overpayment, they will of course ask you to pay it back, but you can ask to pay it back in affordable instalments.

If you need help checking the calculation, challenging any overpayment or negotiating repayment, contact your local citizens advice.

@ExclamationPerfume

You will probably end up repaying what you have had since April. It is calculated on yearly household income.

Whilst understandable, that would be very disappointing as the money I received previously was very much needed. Once I was no longer eligible, I updated and stopped receiving funds. I have no intentions of making a joint claim, happy to just make a financial arrangement with my partner moving forward.

I took so long to write my reply that several posts have appeared since then! Sorry but I disagree with PPs, I don't think you'll have to pay back everything you've received since April, since you were entitled to it. I'll try and dig out a source for that rather than just my own head (as I haven't advised on tax credits for a while, and I'm not 100% sure exactly how it works when you close a claim).

@AnotherEmma

Your best bet is to call the tax credits helpline to check.

There will probably be a delay in the final calculation - for claims that stop mid-tax year (as yours has) I'm not sure whether they do the final calculation straight away (which could still be slow) or wait until the end of the tax year ie April 2021. Hopefully the former. If you are in paid employment they will be able to use the information they get from your employer (when they report payroll info to HMRC) but you could also send copies of your payslips for April-Oct 2020.

As long as there have been no significant changes in your income in the last 18 months or so, and you notified them of the change promptly, you're unlikely to have a big overpayment of tax credits. If there is an overpayment, they will of course ask you to pay it back, but you can ask to pay it back in affordable instalments.

If you need help checking the calculation, challenging any overpayment or negotiating repayment, contact your local citizens advice.

That's very helpful, thank you. I may make the call next week as worrying about a potential debt letter appearing sometime in the next 6 months would make me very anxious.

Some useful info here. As I suspected, they only need to know your income from April 2020 until the end of your claim (ie October 2020) not the end of the tax year (April 2021). That means your award will be calculated for the period April-October 2020, not for the whole tax year.

www.gov.uk/end-tax-credits-claim/print

PS Unfortuantely the link I found is about tax credits ending when you claim UC, but I think that it will be a similar process for ending a tax credits claim for another reason and not just claiming UC.

@AnotherEmma

PS Unfortuantely the link I found is about tax credits ending when you claim UC, but I think that it will be a similar process for ending a tax credits claim for another reason and not just claiming UC.

Massively appreciate you taking the time to look that up for me, thankyou. If anything, I've earned less this year (as many people have in 2020). So, hopefully will all be fine. That will help me sleep better tonight 😊

Ah. Just did a bit more digging, and I think you will have to wait until April 2021 for the final calculation. It's called "end of year finalisation". It looks like they only do the final calculation straight away (in-year finalisation) if you're claiming UC.
www.litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/universal-credit-and-stopping-tax-credits

Sorry for the confusion. It's rather complicated, as you've probably gathered But my original point still stands - it's unlikely that there will be a big overpayment when they eventually do the final calculation.