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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

to be worried about the tax credits people claiming loadsa money back???!

17 replies

Joelysma · 05/04/2009 17:12

Am getting a bit worried as have recently had a letter from tax credit people saying we need to renew our income details this April. For the past 6 months we've been getting £360 a month to help with childcare costs of £200 a month. I called the helpline back then and explained the discrepency but they didn't seem that bothered or really give me an answer and said something about working tax credits too. I really didn't think we were entitled to them too. Arghh! Confused by the whole thing, don't understand why they had this figure as we were completely honest with our income, nursery costs etc at the last renewal. Does anyone know if they can demand any overpaid amount back in one go? I Am starting to have sleepless nights thinking they might demand it all back in one go which would be a nightmare. Any experience, advice please??

OP posts:

dmo · 05/04/2009 17:21

i guess you spent the money then?
not sure really hopefully somebody will be along soon to help but if it happens again put the money into a different account and dont use it

MrsMuddle · 05/04/2009 17:36

I got overpaid about 6 years ago, and have never claimed since. Our income is variable, and may be either just over or just under the threshold.

We had to pay back £600, and I think they gave us 30 or 60 days to do it. We had to pay back because our income was over threshold for that year, and we weren't due any for the year after, so they couldn't have taken some off each month.

Hope this helps.

LuluisgoingtobeanAunty · 05/04/2009 17:39

YABU if you thought you were being overpaid and spent the money

CharleeInSpring · 05/04/2009 17:41

God i wish i didn't have to claim tax credits, MIL once forgot purpously to give us a letter from them when we lived with her and it resulted in us owing them £3000, i had to give them a detalied run down of everything our money went on including petrol, health costs, weekly shopping ect and it worked out that suprise, suprise we couldn't afford to pay anything back at any rate.

We now pay £5 a week and will be nearly 60 before its paid off.

CarGirl · 05/04/2009 17:42

look at entitledto.com fill in what you both earned for the tax year that is just about to end and your total childcare costs for the year and it will give you what you should receive for the whole year, then look and see what you have received for the whole year.

Is it that you started to claim part way through the year so you got high payments for 5 months rather than lower payments over 12 months. They would just deduct overpayments from next years award.

Seona1973 · 05/04/2009 20:16

when we got overpaid they took part of the overpayment out of the next years entitlement and then we paid the rest off over 12 months by direct debit. They then took out too many direct debits and owed us some money back. It took at least 6 months to get the money back off of them . We now dont qualify for any tax credits which is probably just as well!!

honie · 06/04/2009 16:11

They over paid me too, gave me a whole years worth of money to both hubby and me each. I called them and they said they couldn't take it back, but would take it at the end of the year.

I found out that if you inform them of the mistake within x amount of time then they cannot claim it back. I had to fill in a form when they started hounding us for money explaining why I didn't think we were liable and I won, didn't have to give them a penny! It was their mistake though, and I told them very early on that they had made it. I can't remember the exact details but iy might be worth looking into as you did phone them and tell them?

katiestar · 06/04/2009 20:02

I got a repayment demand from the TCO last Friday for £40,000!!!! I am hoping it is a mistake

DSM · 06/04/2009 20:05

Did they say it was the correct amount when you called them?

Is it not £360 in working tax credits, including the childcare element?

Why would you think you are not entitled to working TC?

If you can't get working TC, then you can't claim the childcare element, IIRC.

poopscoop · 06/04/2009 20:06

ooh fark katie!

katiestar · 08/04/2009 12:40

they say to just ignore the £40k demand (as if I could pay it back !!!!) But still if someone who was in not very good health got the letter ,it could do serious harm.

When they made a mistake with mine they said they wouldn't claim back the overpayment (because it was their mistake)
Don't know all the ins and outs but you can certainly get childcare without getting WTC.WTC are for those on a very low income

katiestar · 08/04/2009 12:42

Sorry another thing
the way it is worked out is so much for each child + so much for each parent + childcare element and then WTC too if applicable.

roulade · 08/04/2009 12:49

I just get Childcare element and not WTC as me and dh both work. We get £400 per month and nursery costs £835.

ssd · 08/04/2009 12:51

op, they'll want it back, you need to get this sorted

Flibbertyjibbet · 08/04/2009 12:56

If you are getting some help with nursery fees then its very likely your income is low enough to get some family tax credit too.
Working tax credit is a pretty low threshold, we are not below it but we do get some child tax credit along with nursery tax credit.
Once they decided they had overpaid us, they don't demand it all back at once rather they reduce whatever payments you have left for that year.
My friend and her husband earn over £50k between them each year, they are not eligible for help with nursery fees but they do get a small amount of family/child tax credit.
The upper earnings is quite 'high' for the family/child tax credit.
(I use the term 'high' losely as earnings are all relative, I'am comparing it with the average family income).

Our tax credits is a nightmare as we are both self employed and earnings can flucuate a lot even from month to month. I used to update them every 5 mins but now I just give an overestimate in April of what I think we will earn in the year, then update to the actual figure when they send the renewal forms in August - by which time I've done our tax returns and have the exact figure.

Check the letters they send you, it gives a breakdown of what is child/family tax credit, child care element and any working tax credit.

HappyMummyOfOne · 08/04/2009 13:00

You can get the childcare element if you are over the limit for WTC (approx £17.5k joint salary) but under the childcare limit (approx just under £25k joint salary based on one child).

It could be you earnt less in the previous tax year than the last so you qualified but wont this renewal. It could also be that some figures were wrong and you were not entitled.

Better to try and resolve sooner rather than later.

Blondeshavemorefun · 08/04/2009 17:34

friend got overpaid and all was fine for 3 years and then they wanted the money back

she had to take out a loan to pay them back

i think if you are honest with your answers and fill out the form properly, and they overpay then you shouldnt have to repay

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