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Tax Credit cock up... so worried

6 replies

Opal93 · 12/04/2021 18:02

Sorry if this is long but want to tell the whole story. I have been claiming child tax and working tax credits since 2016. I got an inheritance and tax credits operate differently than UC in that there is no capital limit, they only care about interest earned above £300. I know a lot of people disagree with this but that’s a whole other thread. Anyhow, when I renewed for tax year 2019-2020 I checked my interest and didn’t declare it as it was less than £300. My mistake though was I forgot that renewals are based on the previous tax years income. So I phoned the bank to check how much interest I made tax year 2019-2020 and it’s £601! So I phoned HMRC to tell them my mistake and that I’ve probably been overpaid that whole year! They said I have to write to them, explaining as they can’t sort it over the phone as it’s too long ago so I posted the letter today. I feel better that I have been honest and admitted to my mistake but I am panicking about what they will do. I hope I’m not penalised too harshly. Anyone on MN done similar and what happened? I of course am willing to pay any money I shouldn’t have got back but I hope they don’t take me for fraud. If you have made it to the end, thankyou and please don’t be too hard on me because I am already furious with myself

OP posts:
Opal93 · 12/04/2021 18:03

Sorry, meant the interest I hade made in 2018-2019 when I renewed for 2019-2020 claim

OP posts:
RedHelenB · 12/04/2021 19:21

Doubt it will make a difference to anything tbh. We're talking 300 pounds on top of any other income you've earned.

JamesMiddletonsMarshmallows · 12/04/2021 19:56

I doubt £300 underestimate will make much of a difference!

Opal93 · 12/04/2021 20:00

Just worried in case they think I did it on purpose!!

OP posts:
Lassy1945 · 16/04/2021 08:53

That is a lot of interest when rates are so low
So I imagine it is on savings way above £16k
Just something to consider when you have to change over to UC

Opal93 · 16/04/2021 10:15

Lassy1945 I won’t be entitled to UC when the switch happens. It hasn’t been rolled out in my area yet but I think savings are disregarded for 12 assessments periods after switching and after that normal rules apply, so once that’s over I won’t be entitled to it

OP posts:
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