Tax credits overpayment - please help!

[HuckleberryFields]

I probably can't dispute it but I just wanted to hear others experiences just in case!

HMRC have said that I have been overpaid by almost £2000. They adjusted my payments and next month I was due to get almost £400 less than last month. Called them and they have stopped this now so it will be recalculated but I feel frustrated because to me the award notice I had in September wasn't clear.

It asked me if the details they had for the year 2019-20 were correct which they were and to let them know if there were any changes. I hadn't changed jobs or anything and I'm on a salary don't do overtime or anything so as far as I was concerned I thought they would calculate the income based on my monthly salary which had remained the same. I earned more in 20-21 because I worked the full year whereas in 19-20 I worked 4 months only (started the job in November). I didn't realise that it was my job to let them know my predicted annual salary for the end of 2021.

I realise it does look stupid to think I was eligible for that much money but I was vaguely aware of a covid boost and just hadn't been on WTC for long so just not familiar with it and as I say just thought they all the information they needed.
I imagine this is just my mistake and there's nothing I can do but I just wanted to find out if anyone else had ever challenged their communications.

No you can't dispute it.

You won't be able to dispute this but you will be able to negotiate a repayment plan

Tax credits kept paying me despite me telling them my income had increased, it resulted in an overpayment. Luckily I had put the money aside, when they requested it back I negotiated a payment plan with them over 2 years.
Work out what you can afford monthly to pay back and talk to them, shoeing your figures if necessary.

I don't understand why if you put the money aside you negotiated a 2 year payment plan. Why not just sort it out?

They paid my ex and I £3000 overpayment despite me religiously updating them the day anything changed. I know UC has bad press (the advance and wait is a bugbear of mine) but at least it’s transparent, anyone can work out what they are entitled too, and it’s extremely difficult to get an overpayment.

Thanks for the replies everyone. It's awful that this happens to people when you have told them everything correctly. From what I read online it looked like in that case you can dispute it because HMRC are the ones at fault in that case.

Does anyone know if you can ask to move to UC? My understanding was that TC was slightly more generous but I'm not sure if that's true and I really want to avoid this stress again!

I was once overpaid 5k by tax credits many years ago, because the advisor left a zero off my husbands yearly wage amount

I knew I wasnt entitled to it so phoned up tax credits straight away to pay it back, but they repeatedly declined to take it back.

They referred me to another dept who then sent me a letter saying they hadn't actually paid me the 5k even thought it was there sitting in my bank account!!

In the end, even though I wanted to pay them the full amount back straight away, they wouldnt accept it because it could leave me short on money so instead I had to pay it back via a monthly payment plan!

I've honestly never had so much trouble trying to pay someone 5k before!

@HuckleberryFields

Thanks for the replies everyone. It's awful that this happens to people when you have told them everything correctly. From what I read online it looked like in that case you can dispute it because HMRC are the ones at fault in that case.

Does anyone know if you can ask to move to UC? My understanding was that TC was slightly more generous but I'm not sure if that's true and I really want to avoid this stress again!

Yes you can but once on IF you can't move back so be sure you're going to be better off on it.

Use a benefit calculator to work out whether you'd be better off on tax credits or UC. There's links to the three most popular at the top of this page: www.citizensadvice.org.uk/benefits/benefits-introduction/what-benefits-can-i-get/

If you do switch to UC make sure you know and have evidence of exactly what your repayment arrangements should be as it won't be detailed or explained on the UC statement, it will just be an overpayment recovery.

Thank you. I used the turn2us calculator earlier and that suggested I'd be better off on UC even once the covid uplift finishes. I think I'll contact CAB to be sure and find out what happens about the repayments if I move over.

I would triple check your understanding before moving over to UC.

Unlikely you will be better off.

Some of those calcs include child benefit in the figures

You can't dispute because you didn't declare the predicted income when they sent you the annual statement. But, you can ask for a repayment plan that you can afford eg £50 a month

@HuckleberryFields

Thank you. I used the turn2us calculator earlier and that suggested I'd be better off on UC even once the covid uplift finishes. I think I'll contact CAB to be sure and find out what happens about the repayments if I move over.

This is absolutely the best thing to do.

@CiderJolly

I would triple check your understanding before moving over to UC.

Unlikely you will be better off.

Some of those calcs include child benefit in the figures

Many people are loads better off on UC, especially if working.

It's helpful to know UC can work out better financially and hopefully means overpayments are less likely.

Do not SWITCH to UC! It's a much less clear cut system. They don't say 'yes you qualify' or 'no you don't' you just have to submit your childcare costs every month and wait. I did that five months in a row and got nothing, then they randomly paid £509 into my account in January. It was because I got paid early at Christmas so technically didn't earn anything between the period 28/12-28/01. Rang them immediately to tell them, they just said oh well that will go to a debt management company and hung up the phone, despite me telling them that I had the money ready to pay them back! So now I owe Taxcredits and UC. If I stayed on tax credits I would have been better off and had the £500 one off payment.
I haven't received any tax credits since 2018 and last week I received a letter to say I was overpaid that year. I do wish they'd fuck off. It's incredible that two full time working parents have to go through this shit. UC treated us in an awful manner, I wouldn't speak to anyone the way they spoke to us.

Actually UC is much easier to understand than the legacy benefits and tax credits are absolutely the worst and like a dinosaur in how quickly they respond to changes in income - hence why so many people end up with overpayment debts.
But if you're better off on tax credits then stay on them as long as possible but be watchful.