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Original poster

Tax credits overpayment from 5 years ago? Demanding I pay £4600

24 replies

Lovemusic33 · 04/11/2020 08:01

Hi, I know there are several similar post and I have read them.

I have received a letter stating I owe £4600 for a over payment made almost 5 years ago. I had a previous letter a couple years ago and spoke to them on the phone about it, was told I probably wouldn’t have to pay it and heard nothing since (until now).

The over payment is due to my abusive ex lying to me about his income. He lived with me for ten months before I had to get the police to remove him. I wasn’t working at the time as I am a full time carer to my disabled child. When he moved in he was employed and he gave me his earning from the previous year, I informed tax credits as soon as he moved in, 10 months later he moved out. Tax credits then tell me that he had another job that he didn’t declare (I didn’t declare as I wasn’t told) to tax credits meaning he wasn’t meant to be getting working tax and meaning earning were too high for me to get child tax. They are now saying I have to pay back £4600 in child tax and working tax.

I haven’t got £4600, I’m a single parent, carer of 2 disabled children and only earning £90 a week.

I have written to them asking if they are going to chase ex for money as he was responsible for this fuck up too but they have ignored my letter and sent out another letter demanding I call them to sort payments.

Where do I stand?

OP posts:

VanCleefArpels · 04/11/2020 08:04

Call Citizens Advice. There is a process to appeal but there is a 30 day limit to do this. At worst you can set up a repayment plan set at something affordable for you

ThatIsNotMyUsername · 04/11/2020 08:05

Call them. Explain fully the situation and ask where you stand. Explain your financial situation - they may still want it repaid but over time.

Sorry, you much be pulling your hair out - but do call them.

Original poster

Lovemusic33 · 04/11/2020 08:07

@ThatIsNotMyUsername

Call them. Explain fully the situation and ask where you stand. Explain your financial situation - they may still want it repaid but over time.

Sorry, you much be pulling your hair out - but do call them.

This is what I did when I got the first letter several years ago, was told at very least they would half it and chase ex for half, I then heard nothing back so assumed it had been dropped. 3 years later and I get this letter.

OP posts:

ThatIsNotMyUsername · 04/11/2020 08:14

They are pretty hopeless. Call and write - keep copies. I got 3 letters re child benefit in quick succession - each one said something different and I ended up calling because it was so confusing.

aztecnik · 04/11/2020 08:18

Feel sorry for all women being financially abused.

Iminaglasscaseofemotion · 04/11/2020 08:24

They are absolutely useless. My mum had a similar problem but because her and my dad split and he moved out. She phoned to see what she was entitled to, she was told x amount because my brother was still in full time education. She was shocked so phoned again to confirm and was told again that, yes thats what she was entitled to. About 8 months later she got a letter saying it wasn't actually what she was entitled to, they made a mistake and SHE owed them money.
She had to set up a payment plan, and was still paying back years later.

Igotmyholiday · 04/11/2020 08:31

My dp got similar letter last week, just phone them. He arranged a repayment last year for half the amount ( he didn't even know they got tax credits) and when he phoned happy for his repayment plan to continue. Looked like letter sent as his ex hadn't been paying her half, they may accept your deferral again due to your circumstances, they were quite reasonable, not sure why the letter goes to the one who is paying or made a plan not to but they did say they would be sending same letter to the other party too.

Original poster

Lovemusic33 · 04/11/2020 08:40

Apparently they have no contact details for my ex so can’t chase him, I have no details for him either due to having an injunction out against him when he left.

The letter says I have to call to set up a payment plan, they will look at my outgoings and money I receive. I’m not happy about this, I have a couple £1000 in savings and I’m worried they will look at this and assume I can pay it to them, I need that money as my safety net incase the car breaks etc..

OP posts:

Original poster

Lovemusic33 · 04/11/2020 09:48

Just spent 90 minutes on the phone, got passed from person to person (5 people), managed to persuade them to half the debt so it’s now £2300, it’s going to take me 7 years to pay it back.

OP posts:

ThatIsNotMyUsername · 04/11/2020 10:34

Lord above - what a nightmare. That’s interest free I assume? At least you know where you stand and that it is agreed. I’d write to them to confirm this - don’t wait for them - to make sure it’s all on paper.

Love51 · 04/11/2020 10:39

Well done @Lovemusic33 That's really well done.
You saved £2300 in 90 minutes - an excellent time investment!

SidneyCasing · 04/11/2020 10:49

I’m a single parent, carer of 2 disabled children and only earning £90 a week.

This is a bit of a red herring tbh. You must be claiming benefits on top of the £90? Plus £2k? savings? I think you can absolutely get into a payment plan, for your now half of the debt.

Incidental, how on earth can your partner work a job you don't know about? How did he manage that?

Original poster

Lovemusic33 · 04/11/2020 11:03

@SidneyCasing

I’m a single parent, carer of 2 disabled children and only earning £90 a week.

This is a bit of a red herring tbh. You must be claiming benefits on top of the £90? Plus £2k? savings? I think you can absolutely get into a payment plan, for your now half of the debt.

Incidental, how on earth can your partner work a job you don't know about? How did he manage that?

The job was before I met jim as tax credits work on previous years earnings, I don't want to go into details bit he moved in not long after we met (I know how stupid i was), he declared earnings from his job bit was self employed for a couple months before he started that job and did not tell me the earning from this, those earnings took him over the limit for tax credits. I didn't know until a year after he moved out.

OP posts:

SidneyCasing · 04/11/2020 11:08

Oh, I understand! Sorry I was wondering how on earth he managed to be quite such a shit!

RandomMess · 04/11/2020 11:12

I would actually try and negotiate that monthly amount down it seem unaffordable on your income and outgoings? We are repaying at £10 per month...

Original poster

Lovemusic33 · 04/11/2020 14:01

@SidneyCasing

Oh, I understand! Sorry I was wondering how on earth he managed to be quite such a shit!

He was a shit in many ways, was almost leading a double life. I really hope tax credits catch up with him and make him pay his half.

OP posts:

Greektome · 04/11/2020 14:12

I had similar. Argued against it - ignored. They then passed it on to a debt collection agency, which threatened to sue. Argued against it again. This put them off going to the hassle and expense of suing. They're collecting the money back, but slowly.

wegetthejobdone · 04/11/2020 16:00

That isn't how it works though. They pay you based on the previous year's earnings but then at the end of the year update so you should only have money based on the actual earnings in the year. So if in the year he was actually with you he only did the one job then they should have given you tax credits based on the one job after their process of updating at the end of the year. I would go see CA or similar.

Livelovebehappy · 06/11/2020 16:18

Definitely hold out to pay just half. My DH had left the country, but I still only paid half. They will try and get the whole amount from you if you agree, but I read at the time that they can only chase you for 50% on a joint claim.

Strawberryplum · 08/11/2020 14:41

First of all don’t ignore the letter. I had a bill in for nearly 3000 from 7 years ago. I ignored all the letters and they finally contacted my employer and started taking money from my wages. I’m on the mw part time. I think it was about 25 pounds a month. Well with all the Covid and furlough the inland revenue stopped taking money for months. So I contacted them and fixed a payment plan of 20 per month. So I’ll prob be paying back for years.

Strawberryplum · 08/11/2020 14:42

Just want to say the girl I spoke to from the inland revenue was lovely. She sorted out the payment plan and was very understanding.

SkiingIsHeaven · 08/11/2020 14:59

I had a similar problem with them. Their error meant I had a £6000 overpayment.

They still kept paying me the wrong and higher amount even though I asked them to stop and was busy trying to pay them back.

The lot of them are completely incompetent.

They only stopped paying me when I said I would no longer pay them back if they continued because I was wasting so much time trying to deal with their continuous stupidity.

It took 3 years to sort out initially and then a number of years to pay it back.

I wish I had never applied in the first place.

Totally useless.

Good luck. You will need it.

wishywashywoowoo70 · 08/11/2020 17:30

Had the same issue with them 8 years ago. They told me id been over paid so I rang them to sort it out. They would stop paying me though in case I suffered even though I told them not to because it meant I owed them even more. I paid it back over years and years at a minimum payment just to piss them off.

Christmasfairy2020 · 12/11/2020 20:56

I also owe to tax credits from years ago. I pay 10 pound per month. They will say can you take a loan can you put on visa and be hard. But say no more than 10 pounds as I cannot afford it

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