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Original poster

Working tax credit overpayment.

27 replies

teenagetantrums · 04/09/2021 17:34

So l have just received a letter saying l owe £2k from 2015 in working tax credit payments. This was the last year l claimed as my DD was at college and then went to university.
I have had no letter or notification before today. Although l did move 5 years ago but the government had my address for tax and stuff since l moved.
My partner is freaking out. I think it's just a mistake or if not l can pay it back in inslatments.
There is no breakdown on the letter as to why l have been overpaid. To be honest at the time l thought it was quite alot of money a week while l was working part time but l always updated them with change of circumstances so can't understand why 6 years later l have this.
Anyone been in this situation and actually got the debt cancelled. Obviously l will phone them on Monday and try and get to the bottom of it just confused now

OP posts:

Fred578 · 04/09/2021 17:36

This happened to me but it was £7k... it’s happened to lots of people. Ring them and you can arrange an affordable payment plan - do check it’s right though!

Whenigrowupiwanttobea · 04/09/2021 17:40

Snap! I received a letter for a similar amount. Rang them up and asked why I had racked up such a big overpayment when THEY calculate the monthly payment from what HMRC tell them has been the annual wage. All she could say is "that is how it works" and some months (you) may have earned more". No real explanation at all. I have agreed a payment plan with them and won't ever claim it again!

Herbie0987 · 04/09/2021 17:42

It happened to me. I told them my circumstances had changed but they wouldn’t recalculate till the following tax year. I knew I wasn’t entitled to any. I put the money into a separate account and waited. When the bill finally arrived I rang and made an arrangement of half per month of the amount I had received, till it was paid.
I would ask them for a breakdown of the calculation to make sure it is correct.

Original poster

teenagetantrums · 04/09/2021 17:49

Thanks everyone.l am going to ask for a breakdown. I'm more than happy to pay it back if it's right but l would like some proof that it is not just a random you owe us £2k

OP posts:

Kerplunkk · 04/09/2021 17:59

I’ve heard of so many people mentioning they’ve received similar bills, they must be pulling an absolute fortune back in.
I’m currently receiving tax credits and am dreading being hit with a bill

Original poster

teenagetantrums · 04/09/2021 18:10

I would not mind but it's been 6 years since l got working tax credit..you would think they would have contacted me before

OP posts:

Babyroobs · 04/09/2021 23:56

You probably needed to have been working 30hours a week to continue getting tax credits once your teenage left education.

Alpinechalet · 05/09/2021 11:15

Once you get the breakdown offer to pay in instalments.

Happysinglemum72 · 07/09/2021 14:28

I got this too as soon as I started claiming UC.it was for £3k. My ex claimed the tax credit. I knew nothing about it. Did not even know he claimed it let alone saw the or spent the money. But I still have to pay back half via automatic deductions from my UC!

Babyroobs · 07/09/2021 14:50

@Happysinglemum72

It would have been a joint claim.

Happysinglemum72 · 07/09/2021 15:08

Yes it was. But I had no knowledge of it.

Darbs76 · 10/09/2021 08:50

Give them a call and ask for a breakdown of what you were paid, and what you should have paid and why it was wrong. They will allow you to pay in instalments but it’s very annoying. I had to pay back 2k last year and I wouldn’t be surprised if I’m asked to repay more

Pingodingo · 10/09/2021 15:12

I was apparently overpaid too, by around £2.5k. As a single parent on a tight budget at the time, it really worried me and it messed up my finances. I agreed a repayment schedule with HMRC of £45 which I’ve just about now paid off, 4 years later. As a PP said, I won’t ever make a claim again as the whole thing was hugely stressful and seemed woefully inept on their part. Perhaps that’s the idea, to put people off

LakieLady · 10/09/2021 17:14

Tax credits are always a provisional amount, based on a prediction of what you will earn in the tax year. That's why TC claimants have to complete a form after the end of the tax year to tell HMRC both what their actual income was and what they think their income will be for what is then the current year.

Not doing this, or not doing it right, will lead to over- or underpayments.

I'm intrigued as to why there are so many overpayment notices being issued so long after the event though.

Username916 · 10/09/2021 17:18

I've had so many of these. I dread the post man every day for fear of the brown envelope. I'm pretty sure I've paid back everything I've ever been paid by them! It's the fact they take years to notice and tell you I'm not sure I'll ever relax.

Username916 · 10/09/2021 17:19

Just realised I never answered your q. I've never been able to get it cancelled and having read many forums they don't ever seem too. I've always just arranged a payment of £50 a month. They are happy as long as something is being paid.

Needanewadventure2021 · 10/09/2021 22:04

I get tax credits and have been reading for years about how they all of a sudden start chasing an alleged overpayment years after. I dont even get how they can do this as every year you get a renewal in which they should finalise your award for the tax year. Surely this is their f* up?

But none the less the idea of this happening to me has always worried me. It shouldn't BUT I bet no one else ever expected an overpayment bill a number of years down the line!

Belledan1 · 11/09/2021 23:02

My overpayment was from 2015 too. It was when I was made redundant. I pay 30.00 a month back. I could probably afford a bit more now but not telling them that. Feel cross they overpaid me at the time as I did query it as it seemed alot I received. I dont get any now. Its interest free and does not go on your credit record . If they over pay you and you get tax credits they take it out your payments. I read somewhere ages ago that 2015 was,a year of a lot of overpayments.

Happysinglemum72 · 12/09/2021 06:41

How do you change the repayments? They are taking over £100 every month directing out of my UC. It’s too much I’m barely getting by.

Seesawmummadaw · 12/09/2021 12:18

We had this to but for a lot more. I had always contacted them straight away with any change of circumstances. I’m still paying it back 9 years later.

Fundingissues · 12/09/2021 12:24

I thought debt could be wiped off if you hadn’t acknowledged that you owe it within 6 years - is this no longer the case?

redheadwitch · 13/09/2021 19:41

I've received a similar letter saying I owe £1200 from 2011. I was absolutely poverty stricken back then, so no way I think it's right. However, I have no real way of disputing it as I have no evidence in my defense after so many years. Is it legal for them to pursue debt so long after the fact? As above poster says, I thought the limit was 6 years?

AlexCabot · 14/09/2021 11:10

@Fundingissues

I thought debt could be wiped off if you hadn’t acknowledged that you owe it within 6 years - is this no longer the case?

Doesn't apply to money owed to HMRC, it's mostly commercial credit.

We've recently been contacted about an overpayment from near on 15 years ago. The collections people are quite reasonable about repayment, as long as they're getting something every month.

I also wonder why all of a sudden these overpayments are being discovered and chased. Apparently it's something to do with tax credits etc being transferred to DWP.

A cynic would wonder if it's a way to offset the amount that the government have had to pay out in furlough payments

SpindleWhorl · 14/09/2021 11:15

Funny how the amounts 'owing' always seem to be between £2,000 - £3,000.

Almost like it's a deliberate policy.

MiddlesexGirl · 14/09/2021 11:19

@Happysinglemum72

How do you change the repayments? They are taking over £100 every month directing out of my UC. It’s too much I’m barely getting by.

Lots of info here

revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/

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