Over-payment of tax credits

[ZebraZeebra]

Hi - just wanted to check something as I've been ringing and ringing and not got through to anyone - as in, on hold for over an hour!

Last year over a period of four months, I was on maternity leave and my husband was self-employed and earning very little. So we were entitled to tax credits. When we could forecast future earnings I called immediately to notify them of our financial change. At the time there was a lot of talking to them because they went on our previous earnings the year before when I was in work, then I had to confirm our current earnings - well below the threshold with me receiving SMP and DH building up his business. Our payments stopped - rightfully - when we could forecast accurately what DH would earn and they said I'd been overpaid given what my husband was now earning.

I spoke to someone summer 2013 and they said any over payment would be taken back from subsequent claims. Fine, no actual re-payment. I also have this on a letter.

This year I get a letter confirming our circumstances and that we're not eligible - fine - but that we need to confirm we'd been over-paid. We're just about breaking even each month, just about scraping together rent and bills but DH is just ever-so-slightly over the threshold so we're not entitled to anything. Which is fine but we couldn't afford re-payment. I've seen talk of re-payment, but also about how they take over-payment from future claims. So - which is it?

Sorry I can't help, but think we may soon be in this situation as well, despite informing them of all changes immediately. Dh has just started work, we have informed them, but they have said it could take 8 weeks to process and during that time they are paying us. We too are just about going to manage?, it will be very tight, I am trying to keep what we get in ctc in case they do want it back, but it's difficult when we don't have enough. Watching with interest ...

Hi
I was in similar situation to you both back in 201/2011, I owed some money back to an error made and was told it could be taken from future years so no problem, however the following year the salary threshold changed and we no longer qualified. If they do take it from future payments I think they take a % from each month. I received a letter shortly after around July/August time advising that I need to repay back the amount with 28 days. I paid a portion of it then came to an agreement to pay the remainder back each month over 2 years. Thank fully it finished in April this year ... when you receive the letter there is helpline that you can call if you are unable to pay in one transaction. I found them very accommodating and discuss various ways to repay. I had read on some forums that you can pay back up to 10 years if you struggling to repay.

We had an overpayment of £900 and then went over the threshold and weren't eligible for any tax credits. As pp says , we were sent a letter demanding the full payment within 28 days. That was 3 years ago. I rang them up and said we could not afford to repay in one go and they agreed to us paying £25 for 3 years which has now just finished. Don't be sared by their demands for full payment, just ring and arrange a repayment schedule.