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Original poster

I've been stupid RE Tax Credits

114 replies

IsItOKToPanic · 01/02/2018 14:32

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.

OP posts:
Mambot · 01/02/2018 15:23

I just want to reassure you that exactly this happened to me, although my horrible ex lied and said he'd paid them back so I got a surprise letter saying I was liable for fifty percent of it to pay back and owed them 700 quid.

They just sent a letter and put me on a payment plan, whatever I could afford. They were very nice about it. X

Original poster
IsItOKToPanic · 01/02/2018 15:28

Thank you for the link. It says on there that there is no deadline to inform them of pay rises. That's reassuring.

OP posts:
AlpacaLypse · 01/02/2018 15:35

As I'm self employed I have a pretty variable income. Tax credits people on the phone have always been incredibly helpful. Ring them today, then you can stop worrying about what might happen.

Situp · 01/02/2018 15:38

Not only can you pay back in instalments, you can talk to them to set a realistic monthly sum.

We are paying back because they changed our information without us contacting them, setting my salary to 0 and by the time we realised we had already been overpaid for a few months. It coincided with the arrival of 2nd dc so we had expected and increase.

We pay back about 10 pounds per month.

Original poster
IsItOKToPanic · 01/02/2018 15:42

Think we'll owe £4.5k max by the time a renewal is due. Anyone need this much? How much did you pay back a month?

OP posts:
Battleax · 01/02/2018 15:52

Have you worked out if you'll be entitled to anything next year?

HotelEuphoria · 01/02/2018 15:54

If you think you will owe that much why are you waiting? ring them NOW, that's a huge amount to be overpaid by you certainly don't want to owe more than necessary.

HolyShet · 01/02/2018 15:54

Tell them now so that it can be adjusted

You'd be an idiot to continue claiming it at the same rate

It's not like a bank you can borrow from.

HolyShet · 01/02/2018 15:54

if you tell them now it can surely only be £2k

Lucymek · 01/02/2018 15:59

I don't know why your planning on having them longer if you know your no longer entitled.
Just call up today instead of adding to your debt.

Is this new way to get an interest free loan ?

harlaandgoddard · 01/02/2018 16:01

I’ve known people to spread payments over 2 years. I guess you just tell them what you can afford? No interest.

NewYearSunshine · 01/02/2018 16:02

If your DP had the new job in October 2017 and you get £400 per month how could you possibly think you owe £4500????

The sooner you tell tax credits the better, the longer you let this carry on the more you will have to pay back.

Battleax · 01/02/2018 16:02

Not so new Lucy Grin

Hissy · 01/02/2018 16:05

oh don't even start me on Tax Credits - I wish I had never ever applied for them. starving is better than the constant worry of what they'll invent next.

If they treated rich people like this there would be UPROAR

Hissy · 01/02/2018 16:05

OP is on a family income of £25k, I qualified for some tax credits on my single salary of £25k, I think OP won't lose them entirely

Lucymek · 01/02/2018 16:07

Check the thread about the tax credits suisidal lady if you need more inspo to call. Confused

Battleax · 01/02/2018 16:08

If you have an entitlement in 2018/19 they'll deduct from that.

Any prospect of you working next tax year to ease things?

MissDuke · 01/02/2018 16:10

OP please call, this is ridiculous. You are just putting yourself into more and more debt, how do you think you will manage then? If something happens to DPs job then you still won't be entitled to receive anything with that massive debt as they will take it back for repayment, then what will you do? You need to wise up and ring, how can you be too scared to make a call but not scared of massive debt?

Battleax · 01/02/2018 16:12

If something happens to DPs job then you still won't be entitled to receive anything with that massive debt as they will take it back for repayment, then what will you do?

Not actually true. There are fixed percentages they can take, depending on income and whether taking more will cause serious hardship.

nandaandm · 01/02/2018 16:14

Set yourself up hmrc account. Once set up you can log in and look at child benefit, child tax, tax codes etc. You can adjust your estimated annual income here and then they'll adjust it within 28 days. If you do end up owing them, they'll be in touch.

mummyoftvef · 01/02/2018 16:15

We had an overpayment and they just took so much off us weekly didn't stop it altogether, so would imagine that's what they will do.

emz1990 · 01/02/2018 16:22

I have just been through this exact situation. DH has a pay rise and I thought I would tell tax credits so I didn't have any over payment. However they knocked my payments down by almost £80 pw until 9th April when it goes back up slightly. They've done this to stop us having any overpayment and having to pay back any money. It's tough at the moment but I'm just looking at the light at the end and I won't have to pay back as wasn't sure on instalments.

Not sure what I would have done had I known the payments would drop as both options equally tough, either a massive over payment or struggle now.
Hope you get sorted x

Oldraver · 01/02/2018 16:28

I would contact them immediatly so they can suspend your payments for Feb/March. That will be £800 less to owe.

Just tell them he has been paid more than you originally thought and looks like you will be near the limit for this year

Babyroobs · 01/02/2018 16:28

You'll just owe them quite a bot of money back. If you tell them now they will probably stop your tax credits now for the rest of the tax year as you'll have had more than you were due. if you leave it until April or whenever you renew then you are just postponing paying it back and potentially keep adding to the overpayment. Your choice.

TickleMcTickleFace · 01/02/2018 16:32

I’d phone them so you don’t build up any more debt. We owed £700 and the lady was so lovely when I rang, she was very adamant that whatever I chose to repay each month was affordable and left us with enough to live. We also got a month’s holiday I think before we had to start paying it back.