So I have recieved child tax credits for a number of years and always reported any changes etc. The last month my husband has recieved a £1000 pay increase but I changed it to account for overtime which is now being offered and I am starting to work 16 as opposed to 8 hours with doubled pay. I changed it all on tax credits and the award went down to 0 so I applied for universal credit as we still earn pretty much on the bread line and benefit calculators have said that we will get a small amount from universal credit.
I have now got a letter from tax credits saying that if the amount doesnt change then we will owe £850 and we will pay it back monthly out of our tax credits. The letter was obviously sent out before I cancelled my tax credits as I waited about a week to weigh up the pros and cons when our tax credits went to 0 but now we are not getting it anymore will I still owe them money? If I do does anyone know if it will be 8/12 months of the 850 that I pay for. Neither of our pays have actually increased before I cancelled it will thay make a difference. I've worked myself up because I dont have that kind of money and 850 debt plonked out of nowhere is a it of a shock