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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think this is DISGRACEFUL! Massive tax credits overpayment!

355 replies

CrumblingKnees · 11/03/2023 15:57

Just furious that common sense is not prevailing and I am essentially being robbed of money by HMRC!

So, twin DC finished education in summer 2021. Both have a disability, DH works but we were entitled to tax credits as wage not massive and we got the higher rate due to disability. I remember getting a letter saying tax credits would stop from August 31st due to this. Was aware and knew I’d have to find a job to cover the shortfall.

Payments stopped and I then started working in November 2021. I do remember getting some letters from them but ignored as as far as I was concerned claim had ended (stupid I know). Youngest was diagnosed with a serious illness last summer and I’ve been a bit of a mess, not keeping on top of things like I normally am.

Anyway got a letter from them a few weeks ago saying we’d been overpaid almost £2,000! Shocked, rang and basically they’d added on my work income from November onwards to my tax credit claim for that year (it was not closed). I assumed claim had ended in August and if it had been there would be no overpayment!

I’ve explained this and filed a dispute. They’ve come back today and said that as I didn’t dispute before the end of Jan the overpayment stands and we need to pay it!

AIBU to think this is a pisstake and totally wrong for a government agency to take money from families like this?

OP posts:
Efrogwraig · 11/03/2023 18:58

Write to your MP & ask them to take up your case.

Glitteratitar · 11/03/2023 19:00

But you started a new job and increased your income in the financial year - sounds like you were overpaid. Why on earth do you think you were not?

It’s not based on monthly income, but annual income.

Aganta · 11/03/2023 19:00

Yanbu.

The twelve month system for calculating your claim makes overpayments built in unless your life changes coincide exactly with the financial year. So they fuck you that way.

But then you don't get the benefit of it being an annual system that taxation normally would give you. Eg if you were a month late filing your tax return you wouldn't get a £2000 bill. So they fuck you that way too.

Go to citizens advice and draw up a budget that shows you can only afford to repay at £10 a month.

Fuck em.

NewNovember · 11/03/2023 19:01

CrumblingKnees · 11/03/2023 16:08

We didn’t receive any payments from August that year @Ilikewinter . As far as I was aware claim had stopped as we were not entitled. I started work in November 3 months after payments ended.

Have I not explained it clearly enough?

Payments are based on the tax year April to April so it's irrrelvant that payments finished in August.

Ukholidaysaregreat · 11/03/2023 19:03

They work tax credits out over the year. They can't have calculated your claim yet for this year? You may not owe them anything if they haven't paid you since August. I would want to see the year end calculations! Hope it works out OK for you. If you have to pay back arrange an affordable amount per month. You don't have to find £2,000 as a lump sum.

Gymnopedie · 11/03/2023 19:10

letthemalldoone · 11/03/2023 17:31

Sometimes people who are a poor mindspace make errors of judgement like this. Obviously the OP should have read and dealt with the letters but I guess she knows that now without having to be told?!

Show quote history

But the OP is still claiming that HMRC wanting some money back is DISGRACEFUL. ie it's HMRC's fault.

If they try to tell you something but you think it's OK to ignore them, you have to be prepared to accept the consequences.

RiktheButler · 11/03/2023 19:19

Efrogwraig · 11/03/2023 18:58

Write to your MP & ask them to take up your case.

Is this actually a serious comment?

Babyroobs · 11/03/2023 19:26

ifoundthebread · 11/03/2023 17:53

Thats why everyone is being moved to UC, so they are on the new systems and reducing the chance of this happening as it has been an ongoing issue for years.

Show quote history

The sooner the migration to Uc happens the better !

Babyroobs · 11/03/2023 19:27

Ukholidaysaregreat · 11/03/2023 19:03

They work tax credits out over the year. They can't have calculated your claim yet for this year? You may not owe them anything if they haven't paid you since August. I would want to see the year end calculations! Hope it works out OK for you. If you have to pay back arrange an affordable amount per month. You don't have to find £2,000 as a lump sum.

Op clearly states in the post this was 2021,so would have been finalised in April 2022.

silverlentils · 11/03/2023 19:42

They do calculate it over a tax year so now they are saying that you have earned more this tax year so across the entire year you were overpaid.

Although I actually thought they did it based on a previous tax year so if you get letters next year, make sure you read them

When I had an overpayment because of their incompetence, they allowed me 10 years to pay it back....I could have stretched it over longer if I had provided evidence of income and outgoings, but 10 years was the maximum they would allow without that, so I took it.

GlassBunion · 11/03/2023 21:25

You can shout as loud as you want. You ignored a letter that would have been your chance to sort things out then.
Why did you ignore the letter?
Just because you weren't claiming doesn't mean that you should ignore their letter.

Would you ignore a letter from HMRC if you don't earn enough to pay tax?

Would you ignore a letter from the police because you haven't committed a crime?

It's annoying but you should have answered the letter at the time and got it sorted.

Aganta · 11/03/2023 21:39

Well there's all sorts of questions you can ask isn't there?

Would you ignore a man shouting "fire" in the street?

Would you ignore a really big bogey if you looked in the mirror and saw one hanging out of your nose?

What goes faster: a tortoise with three legs or a cat with two?

Fascinating stuff.

jimmyhill · 11/03/2023 21:56

Underpay someone by £0.02 and they have a PhD in accountancy. Overpay them by £2000 and maths is soooo hard

Original poster
CrumblingKnees · 12/03/2023 01:02

berksandbeyond · 11/03/2023 17:54

YABU for ignoring letters and for not getting a job earlier. You were happy to not work while you were getting benefits but magically could work when they stopped? Funny that

Wow, such nasty people on this forum. Must have sad little lives.

DH has always worked. I had to give up my career as twins had disabilities (excuse me for not putting them into SS care so I could continue working!). They still need care and lots of support now as adults but as we lost TC when they left education, I had to find some way of covering the shortfall while still being at home for them and luckily got a wfh job while also still being a carer! We nearly lost youngest DC last summer to an unrelated condition and he also needs ongoing care and getting up in the night to treat him (never been so exhausted since they were babies) so No when I saw thick envelopes from tax credits, knowing we no longer had a claim and thinking it was just the normal 10 page letter saying we had no entitlement, I tossed them in a cabinet!

It honestly didn’t occur to me that by getting a job to cover the income that we’d lost, I’d be penalised!

OP posts:
Pubesofsoberness · 12/03/2023 04:35

And that is why people on tax credits are worried about working more or trying to change their situation in any way

It's a bit shit that you're claim ends, or you leave an abusive relationship and end up owning money because you've tried to better your situation or your ex partner has decided to take on a better job earning more and your the one who's penalised for it

Brontbee · 12/03/2023 04:41

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Lizzy1328 · 12/03/2023 04:44

CrumblingKnees · 11/03/2023 16:08

We didn’t receive any payments from August that year @Ilikewinter . As far as I was aware claim had stopped as we were not entitled. I started work in November 3 months after payments ended.

Have I not explained it clearly enough?

Weird how you're suddenly able to work now uour benefits have stopped 😩🧐

Newjobformoremoney · 12/03/2023 04:50

Could your son claim PIP? Or carers allowance?
OP it isn’t the best, I appreciate that but entitlements are based on the tax year.
For what’s it’s worth my tax code got fucked up, and with various moving parts I paid 2/3 of my salary in feb in tax which wasn’t enough to live on. The system is flawed but it’s the system we’ve got.

callthataspade · 12/03/2023 05:19

Odd. People aren't rude because they're all trying to help you.

You've stubbornly ignored what everyone's trying to tell you. And putting it in CAPITAL LETTERS doesn't make it any more factual.

Good luck with that.

Lovelyveg82 · 12/03/2023 05:41

No when I saw thick envelopes from tax credits, knowing we no longer had a claim and thinking it was just the normal 10 page letter saying we had no entitlement, I tossed them in a cabinet!

And that. OP. Is why you are in the position.

If you’d spent the same time you have spent on this mumsnet thread as on opening post from HMRC…. You wouldn’t be in the position.

Oblomov23 · 12/03/2023 05:43

You know you shouldn't have ignored the letters. You aren't grasping how TC's work. Based on previous year. And running the whole of the tax year - despite payments stopping in august, you had more income starting November, and this tax year doesn't end till Apr 23.

MooFroo · 12/03/2023 05:56

It’s the financial tax year. I had a similar happen when I started a new job at a much higher salary and agreed a payment plan to pay back.
tbh it’s the best interest free loan I ever had - helped hugely when we recover the initial payments that year and then just paid it back at around £60 a month for several years

don’t stress x

12345onceicaughtafishalive678910 · 12/03/2023 05:57

OP, I hope you get it sorted.

It can't be easy looking after twins with additional needs.

Ignore the sparky comments on here. As a mother of twins I feel your pain. Hopefully this will get resolved.

Maybe contact CAB for further advice? x

User1396390 · 12/03/2023 07:09

I imagine this happens quite often, just get in touch with them and arrange a payment plan

electricmoccasins · 12/03/2023 07:13

Op, I am sorry this has happened to you. You have a lot on your plate. You likely do owe the money back as the payments were calculated on what they thought you would earn for that tax year i.e. nothing The opposite is when people pay a certain amount of income tax and then stop working within a financial year - they get tax back.

Are you earning enough to pay tax now? Are you on emergency tax due to not working so long? You might get something back here eventually. It's all swings and roundabouts, I'm afraid. Ask to pay back £10 a month.