Paying back tax credits overpayment

[Mummypig2020]

I cancelled my tax credits by not renewing. I have started a new job (only 6k a year..) but I’m hoping come September to be able to do more hours as bank staff. I didn’t want to end up oweing loads of debt to them.

Turns out I owe £5k from 2015 when I went from a couple to a single parent?!

How harsh are the repayments? What questions do they ask? I don’t want to have to fill out an income form.

Thank you!

Have you never been told about the tax overpayment before this?

If you call them you can do a payment plan, we had one for about £2000 and we're paying back £50 a month, the person on the phone said for the amount I owed the lowest they'd take would be £20 a month.

Have you ever been told about the overpayment before? Surely it should have been raised with you following the relevant renewal period?

This is what always worries me with tax credits. So I file all letters, and most importantly final award notices highlighting where it says what the balance is and whether they owe me or I owe them. Just in case years down the like this happens to me

They normally take a bit out every month to it,s paid off. But if you can pay in larger chunks it may be better in the long term.

Op 3 years ago this happened to us

We hadn't claimed for a good couple of years and it was an apparent oversight that we owed it

I can't remember the amount we owed but we pay £25 a month and have done for three bloody years

Reminds me I must try and find the paperwork and actually work out what we've paid bak and the balance.

We were really happy not to be having to claim after finally both getting into work etc etc and then they appeared out of nowhere.

We requested paperwork but only ever received one statement before it went to a company called lcs.

It's happened to a lot of people I know

I had about the same as you and had to pay back £250 a month. It was a fucking nightmare and it was their fault.

Any overpayment should have been shown in your paperwork for each year?. If you didn't make a new claim when you became a single parent, that might have caused a problem.

My friend was overpaid, pleaded poverty and pays something like £5 a month.

I’m willing to pay £50 a month. Do you think if I say I can afford that will they question my finances and things?

Nope heard nothing until I cancelled! This is why I cancelled, it’s too much hassle 😩

We paid back £10 a week for over 5 years due to an “overpayment” (complete rubbish but they refused to let us access our own record) they were reasonable in the repayments and offered a lower payment option.

I told them as soon as I didn’t qualify as no more nursery costs and still ended up having to pay back £1000 😢

I had various "overpayments" one was massive, I had all paperwork, involved MP and successfully challenged.

Two were paid back, bare minimum.
I stopped claiming in the end (wasnt a massive amount at that time) for fear of the dreaded "overpayment".

I've also stopped claiming because of the ridiculous system. You can never actually get OFF tax credits without owing them money.

I owe about £1500. Paying back £20 a month. Utter utter farce.

I ended up owing them about £1,500 after splitting up from exDP, and was quite taken aback by it at the moment I was trying to set up a new life; however, I must say they were reasonabe about the repayment period and you can repay over several tax years. If you can offer £50 p/m they will probably be happy with that.

What questions do they ask when you ring up?

I had the same. Updated details straight away but the system apparently didn’t catch up so owed lots. Still paying it back 6 years later! Although it feels worth it to be away from it.

I had an overpayment. Offered them £25 a month for 3 years. They were fine, as long as you offer to pay something. I could afford a lot more but I didn't want it to be noticeable, it was their bloody error after all.

Is your only income 6K a year? You would definitely be entitled to tax credits or UC to top that up.

I would write to TC and ask for proof of what you owe and how it accrued. A lot of people get it written off when they don't actually have proof.

My income is 6k but Come next month it will be increasing because I will become full time. Plus Iv been doing abit of phone chat 🙈

If the over payment was from when you were a couple and your ex was on the claim, he's probably liable for half the debt. I got landed with a £1200 demand for repayment after I separated from my now exh. Told them half was his so they chased him for it while I set up repayments for my half. Worth asking at least.

It's a dreadfully shit system isn't it. Seems to be designed to get those who can't afford it into terrible debt. It happened to me years ago when I first became single parent. Not for for purpose.

I’m on the phone now and she’s put me on hold for 5 minutes. My anxiety is through the roof 😩

I had this. I offered to pay £50/MTH and they were happy with that

It is an utterly grim and confusing system though

I'm only paying back £12 a month and earning 10,000 a year. I have a lot of outgoings though.
I don't think they really mind as long as you pay something. My debt is around £2,700 though. I'm hoping I don't get another overpayment where I haven't worked this year due to furlough.

I had this and I paid back what I could afford, it was £20 per month.

Remember they can't force you to pay something you can't afford to pay, they have a duty of care.

I’m paying £60 a month back 😩