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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:
Sallystyle · 01/02/2018 19:07

They were completely unhelpful with me. Took it back over 6 months. Wouldn't take it over a year, despite telling them how much we were struggling.

Dljlr · 01/02/2018 19:08

I owed them money because they'd buggered something up their end; it was just over £2000 and they let me pay it back in installments.

screamingskull · 01/02/2018 19:11

I had an over payment after calling them and updating at every opportunity, can't remember how much exactly but under £2000.

Anyhow, I now pay £5pw back until my child is 16, been paying fro around 18 months still 3 years to go. I am not upping the payment for their mistake.

Sad thing is, my partners wages have changed continuously due to changing jobs and I am petrified to claim any further money in case they screw us over again.

I would tell them asap

Partypopper123 · 01/02/2018 19:12

I strongly recommend that you do not allow your overpayment to build up even more. It will be harder to pay back, how will you manage to make a repayment if you will struggle without the £400pm?
I paid back a £2000 overpayment at £100 per month. They will make you do an income & expenditure form if you offer a low sum for repayment.

BishBoshBashBop · 01/02/2018 19:17

So you are deliberetly taking money you know you aren't entitled to. Hmm

Allthewaves · 01/02/2018 19:20

If he started a new job and you don't inform you could be sanctioned or court

Leaspr · 01/02/2018 19:32

I’m stressing over the same thing then leaving it longer because I don’t want to face it! Even though I know it’ll only get worse the longer I leave it!
I think they’ll just recalculate it though. Yes, you’ll end up owing money but you can set up a repayment plan.
I flip between being really stressed and not so concerned - they have automatic access to all of your earnings and everything now. I also know that I can just about cope on my wages alone if I owe them too much, which I don’t think will be the case. I’m just imagining the worst outcome.
We just need to take a deep breath...and do it online so we don’t have to speak to them directly!!!

Florallee · 01/02/2018 19:34

I thought you had to let them know within four weeks?!

Branleuse · 01/02/2018 19:37

youll end up having to repay it all, but you wont get in trouble for not reporting the change straight away. Its fine to do it next renewal.

I prefer to tell any changes straight away, and ask them to adjust at the time because i dont like having to pay it back later

Bippitybopityboo · 01/02/2018 19:48

I'd just be honest it's easy to change it online and you'll be worse off in the long run if you dont.

SingaSong12 · 01/02/2018 20:00

You do not have a duty to report this particular change until the renewal. However you will just have a larger overpayment to deal with.

The work related changes that must be reported within a month are if your hours go below the minimum requirement to qualify for tax credits. If these changes aren't reported on time there can be a £300 fine.

www.gov.uk/changes-affect-tax-credits/changes-you-must-report

happy2bhomely · 01/02/2018 22:49

Over the past 10 years, DH's earnings have increased dramatically.

The first year that his money went from almost minimum wage to 20k ish we ended up with an overpayment. I didn't inform them of the increase until renewal time. We were overpaid around 6k.

They just wrote to us with our new award notice and said they would be taking back 50% of what we got in future.

Each year DH has earned more than the year before. When we realise from his payslips that he will earn more than the previous year, we just go online and adjust the amount and they then adjust the payment.

We made a mistake last year and left £2600 off the total income that he earned through self-employment on top of earnings as an employee. I called in a panic and told them that he earned more. They were fine and just adjusted the amount we got. They disregard the first 2500 we weren't overpaid too much.

I can't believe all the people who are having such a tough time with them. It's terrible that they would just stop money and demand it back immediately, assuming you have filled in all the forms correctly.

laura65988 · 08/02/2018 16:12

This is an overpayment and u also have not changed ure circumstances u can't do this as u need the money yeah we all get desperate but u shoowed them the wrong p60 if they figure this out they will fine u as it's the tax man it will also effect future tax credits claim if u ever need this again it seems u need it at time but now u are going to pay back the money and be in same boat xx

laura65988 · 08/02/2018 16:23

U purposely lied about income as u used the wrong tax year that is fraud and were not talking DWP fraud it's the tax man do use not realise how serious that is please stop now before u are caught as u are getting into further debt they will hammer repayment weather u can afford this or not as u have committed fraud knowing and continued u can get a criminal record for this and if u need to rely on benefits again they take this into consideration

Original poster
IsItOKToPanic · 08/02/2018 16:29

I think you've got your wired crossed and need to read my OP again. I haven't shown anyone a p60 let alone lied about one deliberately. I haven't lied at all. I declared the years income they asked for truthfully. I just haven't declared an income increase, which I now believe doesn't have to be done until you renew.

OP posts:
lunar1 · 08/02/2018 16:34

Just tell them now so you can sort it, no point waiting while you know it will get worse.

IsItSummerYet2018 · 08/02/2018 16:41

I had an overpayment. Only a month from changing from single to joint claim. They set the figures. £150 a month for 3 months. I said it would be a struggle and could I lower over more months. They said no or it would be court action.. As it was dp just paid it as didn't want it hanging over. But was still a stress.

IAmMumWho · 08/02/2018 16:44

The sooner you tell them the better. Good luck

laura65988 · 08/02/2018 16:47

Are you all crazy day I don't want to bash but u are saying it ok when it's not she has knowing comited fraud she could be taken to court for this yeah people are saying they were nice about it and I only pay what I can afford yeah use are the lucky ones some people have had over payment and it's not there fault its tax fault and they are either not getting any money of or are paying and they can't afford it losing their home I was zero hour contact and I thought u could get it and was over payment as u need to be a 16 hour at least and I didn't get over payment options I had to pay full amount as u had knowing defraud the system as I was not entitled to any thing they threaten me with procecution I foned and begged I said it was genuine mistake I had to get my parents to pay this and the took out loan for me I am also not allowed to claim for 2y ears in wor 3 Jobs so is partner t survive yes I did it but it was genuinely mistake and I am severely paying the price I think u sa

laura65988 · 08/02/2018 16:48

Think you said u husband was zero hour so be careful and everyone else please stop this as this take it very serious

SwarmOfCats · 08/02/2018 16:52

laura65988 - It seems you’re a little confused. Slow down, use some punctuation, at least try to spell some words correctly.

OP - I had a tax credit overpayment (genuine mistake). I’m paying it back in instalments. If you call and explain they can be quite helpful, and you’ll be able to stop worrying about this.

MyDcAreMarvel · 08/02/2018 16:52

Laura seeing as you are barely literate , I would advise the op to take advise from posters other than yourself.

laura65988 · 08/02/2018 16:54

U read wrong but by all means keep getting in to debt don't have to be cheeky people can read some thing wrong don't write a post saying ure earnings have gone. Up y are taking extra money will y get the jail and then turn around and be cheeky as u think you have been given a the correct

Fondantfancypant · 08/02/2018 16:56

I had an overpayment about 3 years ago which they didn't care how long I repaid it over (up to 3 years) however my overpayment 1 year ago was a different kettle of fish. They wouldn't accept it over any longer than 1 year without me going through every last penny of my income and expenditure to see how much I could genuinely afford. After much battling she let me do it over 1.5 years but they seemed so much stricter - I would try and squirrel some of the money away while you are receiving too much.
I might add these overpayments were through no fault of my own I always rang them when any little thing changed straight away.
I feel stressed at never knowing when a letter was going to come demanding money back!
I know it is shit in a lot of ways but I've moved to universal credit and it's been so much better for us. No worrying about overpayments and we get more money for childcare now. But obviously it also has it's flaws.

meandmytinfoilhat · 08/02/2018 16:57

You'll need to pay them back the money you owe.