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Original poster

Tax Credits overpayment tip

17 replies

Cumberlover76 · 05/08/2014 13:49

We got overpaid for a year of tax credits, around £3000 - my fault as felt would be in a better position to pay back than loose £200 pcm last year, which we are.

I know there have been a few others posting that are in a similar position with owing large amounts so i just wanted to let you know about my relatively easy experience of setting up repayment.

I read on-line that if your offer of payment means you will pay of the debt in less than 10 years they will not ask for income/expenditure details. The direct number to call to make an offer of payment is 0300 2003804, i hardly had to wait, told the man how much we owed and that i could pay £30 per month, he checked (i assume that it would be paid off in less than 10 years) and said it was fine and set up a dd to start on 1st Sept. All in all very painless (at the moment!) So if you're in the same position, give them a call, make sure your offer of payment is enough to repay in 10 years and you should be ok.

OP posts:
gamerchick · 05/08/2014 13:52

Sometimes I think they pluck overpayments out if he air. I'm having to pay back 10 quid a week for 400 quid on an old claim from a few years ago and even the dude couldn't tell me how I owed it.

Really glad I'm not entitled to them anymore in a sense.

Original poster
Cumberlover76 · 05/08/2014 14:07

Yes, although i owe them money, I'm happy that we are no longer entitled to them. I could never work out how they calculated it in the first place and they are impossibly hard to get hold of, unless you want to pay them money!

OP posts:
HenriettaTurkey · 10/09/2014 15:59

I just tried this. I spoke to debt management people and offered an amount that would take 9 1/2 years to pay back. She wanted to ask all sorts of questions about expenditure/repayment and was really arsey.

Sat here in tears at the mo. Nothing set up. Don't know what to do.

minkymuskyslyoldstoaty · 10/09/2014 16:03

so you knowingly got the tax credits?!

HenriettaTurkey · 10/09/2014 16:06

Is that to me? I went back to work after maternity and informed them of change in circumstance by letter. They claim they didn't receive it, so I owe money.

HenriettaTurkey · 10/09/2014 16:35

Well, I bit the bullet and called back. This time, after being on hold for 15 mins, I spoke to a man, told him that I'd called earlier but was really upset by the person I spoke to.

I said that I had wanted to set up a repayment plan for £40 a month (exactly the same amount) and he said he didn't know why there had been a problem, and he'd set that up straight away...

I'm emotionally exhausted but at least it's done. No idea why the woman was so unpleasant and aggressive.

lougle · 10/09/2014 16:37

This thread won't end well. Tax credits are an absolute privilege and they make life affordable. To deliberately get an overpayment then set up a low repayment is pretty close to fraud in my mind.

HenriettaTurkey · 10/09/2014 16:53

Iougle - I agree and I think most of the people using this tip will be people who, like me, have found themselves in debt through an error.

I certainly wish they had received notification of my change in circumstances, as I know I sent it but stupidly didn't keep a copy or speak to them on the phone. I was surprised by the amount I received but, as it was my first child, thought Tax Credits were surprisingly generous.

As it happened, I was saddling myself with £4k of debt which I only discovered when the second child was on its way. Now I have a repayment plan set up, and the lovely man on the other end of the phone has restored my faith in humanity.

And yes, once my mat leave is over, if I can afford to repay it quicker, I will. I hate being in debt.

thornrose · 10/09/2014 16:54

Blimey, tax credits being used as an interest free loan. I just hope it doesn't catch on! I can't believe you're virtually selling this loophole!

minkymuskyslyoldstoaty · 10/09/2014 19:15

no not to you, to the op.
was amazed it was a thing to do.

picnicbasketcase · 10/09/2014 19:17

I'm not sure this thread should be here. You're recommending people commit fraud as you have been allowed to repay it slowly. That's really not good advice.

Bluecarrot · 10/09/2014 19:24

However, if you are in debt to them by accident ( they have messed our updates up 4 times in last 1.5 years) offering what you can afford BEFORE they contact you re repayment plan is a good idea.

HenriettaTurkey · 10/09/2014 19:41

Absolutely bluecarrot.

FedupofTurkey · 18/09/2014 15:08

Marking place, I need to do this through no fault of my own :(

Stupidhead · 18/09/2014 15:11

I got a letter last year claiming I was overpaid and a £16 a month dd was set up. The exact same figure my manager was given even down to the repayments. I have 3 children, she has one, she earns more. No idea how they work these numbers out.

FedupofTurkey · 18/09/2014 19:18

Stupidhead - did you have to go through income/expenditure or just agree an amount?

Stupidhead · 19/09/2014 06:45

Sorry, just seen this! No, I just agreed, nothing scarier than seeing the 'you owe £xxx' letter. That was the suggested amount so I went with that.

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