Tax credits overpayment

[HenriettaTurkey]

We have just received our tax credits renewal letter which states we owe them nearly £4k. I don't quite understand why they paid this to me in the first place!

They knew our estimated household income (£32k) and then, by the deadline I send them our actual income (£34k) and suddenly we owe them £4k.

How is this possible?

What was your actual income for 12/13?

Cleo

For 12/13? It was lower: about £16k as I was on mat leave. But then went back up for 13/14 when I returned to work. But I told them all this...it was not new information when I filled in the renewal form last month.

Ugh.

That could explain it. Do you remember when you gave them an estimate of 32k?

Cleo

It was a while ago...I'm not sure exactly, but probably last year.

I've just found the renewal letter they sent me in June 2014. It states that my earned income was £32107. They had that information and yet still paid me tax credits that they now want back!

When I stopped work they kept paying me for a month, and I had to pay it back ( though I knew in advance and saw it as a tax free loan from the gov) but £4k seems a lot for a month.

Have a look on moneysaving expert. I recall seeing something about overpayments there. If it was their error you might not need to repay...

Then call them and ask why you were overpaid when you updated as soon as your wage changed.

Hi, similar scenario here, owed them 4.5k. They wouldn't budge so entered into a repayment plan with them. There's a specialist department who deal with this.
Tax credits need to be taught as a degree subject, very few people understand them, me included:)

If the fault is theirs they will have to reduce it:
www.advicenow.org.uk/advicenow-guides/problems-with-benefits/tax-credit-overpayments/