Tax credits overpayment help

[McDougal]

Due to some changes during the course of the year, I've only just got round to updating DH's expected salary on our tax credits claim. His job for tupe'd over to a different company in September so finding payslips and doing the maths was fun.

The upshot of this is him earning about £4.5k than our original estimate (overtime, a payment from his previous company for ?hours previously owed) and I also started a temp job which will add £1.5k before I go back to uni.

I've updated all of this online (minus the £2.5k) disregard but now really concerned about overpayment and how HMRC will claim it back.

Does anyone have any experience with this? According to entitled to, we're only entitled to £73, down from £264 so quite a lot of money over the year!

Help?

Deduct it from next years entitlement.

Even if next years is only £70 in comparison to £260 we get now?

Hi,if you have overpaid they will just reduce your monthly payments to recoup the money . You did the right thing telling them so the overpayment does not keep building up

Thank you for the replies. I really appreciate it!

I panicked thinking they'd want at least some of it up front

We'll struggle without it but hey ho, nothing we can do now.

I know that our estimated income will go down by at least £4K next year too so I'd hope they'd take this into account but I haven't heard anything positive about them so won't hold my breath 🙄

They have stopped ours completely because of overpayment, even though they had last years income, exact not estimated, at the beginning of July, they have taken 5 months to look at it. They have also overpaid has last year as well, again even though we gave exact figures when we made the claim in January after DH became ill and we had to close our business. They are not my favourites

If you input the new salary details online they'll send you a paper statement of your overpayment. You can then ring them to find out how they'll claw back xx

That sounds awful, Five. I've just been reading their guide on overpayments which makes it sound as if you shouldn't have been put in that position when it is their fault but I'm guessing they didn't take responsibility?

Do you mind me asking how much you were overpaid by? I think ours will be close to £2.5k

I've done that, princess, so it's just a waiting game I suppose.

I have done a readjustment for income for this year as DH is on ESA and PIP and I am working part time so its gone down from over £4k to just about the same as yours. Have got s a form coming to try and sort a payment plane but the adviser that I spoke to was very quick to say that I wouldn't receive a waiver, despite it being there mistake

We owe money, paying back £10 per month as we don't receive CTC anymore.

They deduct it from the weekly/monthly amount that you get. They took about 50-75% back from my claim last year over a few period of about 6 mths.
I will warn you it starts (without notice - the letter comes after) as soon as they've processed your claim for the year.

We had tax credits for 4 years and every year gave them correct amounts not guesstimates and every year they told us we had over paid. I gave up in the end when they calculated that we owed them £3k. I told them to cancel our entitlement and to set up a payment plan to repay it all back over 5 years. Nightmare!

Similar to Apoll088.....horrendous trying to sort it out.

I've updated all of this online (minus the £2.5k) disregard but now really concerned about overpayment and how HMRC will claim it back.

I'm just checking, but do you mean that you have put in your new annual salary figure, but you realise they will disregard £2500, or do you mean that you took £2500 off your new annual salary figure and entered that into the box?

If you did the sum first, as in deducted £2500 off the final amount before you declared it, I don't think that's right. You should declare your actual earned income, and when they see that it's more than £2500 higher than last year, they will ignore the first £2500.

I thought you put in the actual earnings. Disregard calculation done by HMRC

Sorry, I put in actual earnings and hoping that they apply the £2.5k disregard...which I'm really hoping they still do otherwise we will owe back even more!

It doesn't sound as if many have had a positive outcome so I think I'll just expect all payments to stop and then hopefully I won't get too much of a shock.

When (attempting to) work it out, I think I'd over estimated how much we've been overpaid so might be closer to £1800 as we've only had nine months of over payment so they could even that out by taking it back by stopping our payments for the next year but nothing would surprise me

I'm still paying off a £3.5k overpayment from about 5 years ago. My eldest 2 used to go to nursery 4 days per week whilst I was a working single parent. About a year after they started school (tax Cred updated on time etc) they decided that they wanted proof of all previous years nursery bills! I didn't have sufficient proof and neither did nursery so I had to take it on the chin and let them basically accuse me of benefit fraud! I didn't find anyone helpful and every advisor I spoke to came across very accusatory

I AM A COMPLETE MORON!

Worked everything out via DH's online tax account and it turns out that HMRC had already estimated TOTAL earnings for 17/18 but I assumed it was year to date and added three months worth of pay on.

Fucks sake. I can get the alcohol out now!

I'd imagine that HMRC will now think I'm fiddling something as it looks like I've changed income a million times in the last couple of hours.

I am really sorry for all of the shit that HMRC have put a lot of you through though.

Hopefully they won't be absolute bastards and I can blame DH not quite getting the hang of his online account for all of this

Oh I'm so glad you put the total earnings in 😊. It sounded like you had taken £2.5k off. Phew. At least that's one problem off the list.

Thanks, Lougle.

Unfortunately, they've processed the first change resulting in payments being stopped. I've spoken to someone on live chat who has reinstated the correct figures but couldn't confirm if payments would resume as 'the system' needs to process it. Notice that the system was pretty quick to take money away so hoping they'll be just as efficient processing it again