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Original poster

DWP Debt management

5 replies

Orangesandlemons77 · 18/05/2024 10:08

We're due to transfer from tax credits to UC soon and I am not sure we will qualify or it might be difficult to claim due to DH being self employed.

Problem is we seem to have this overpayment with tax credits from years back. They seem to reduce the payment slightly at present, but I worry that if we don't go through with the transfer they will claim it back from my PIP money or ESA (cont based) which I get for health reasons.

I understand, we owe it and have no problem paying it back over time but would they stop these completely as they are not means tested?

Any advice welcome on how it all works.

OP posts:
Portfun24 · 18/05/2024 10:11

They won't stop them no, they will deduct a percentage until its paid off. If you claimed as a couple but the benefits are only in your name, half should be deducted off your benefits and your partner would usually get a letter saying he owes the other half and can call up and ask to repay in installments.

Original poster
Orangesandlemons77 · 18/05/2024 10:59

Portfun24 · 18/05/2024 10:11

They won't stop them no, they will deduct a percentage until its paid off. If you claimed as a couple but the benefits are only in your name, half should be deducted off your benefits and your partner would usually get a letter saying he owes the other half and can call up and ask to repay in installments.

Thanks, yes that sounds about right, I think after hearing about the carer's allowance scandal and money being asked for in large amounts it worried me.

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Original poster
Orangesandlemons77 · 18/05/2024 11:11

I'm a bit annoyed over it as it's amount DH's self employed profit, he estimated it lower than it actually ended up being some years and now I owe them money off my PiP :-( There we go. As you say they will half it though. I guess it is one of the reasons they got rid of Tax credits so these overpayments don't happen.

And now, well we are not on a high income overall and would probably be able to claim UC but he doesn't want all the hassle of it with checks and bank statements etc.

I saw something online that if it is paid off over ten years they are OK with that as it is £5000 for me that would be around £50 a month I think.

Bit depressing

OP posts:
Kitkat1523 · 18/05/2024 11:29

Did they not offer a payment plan? I underpaid tax once and agreed to a payment plan of 20qud a month over 2 years….I was raging as I felt it wasn’t my mistake….but what can you do🤷‍♀️

Original poster
Orangesandlemons77 · 18/05/2024 13:17

Kitkat1523 · 18/05/2024 11:29

Did they not offer a payment plan? I underpaid tax once and agreed to a payment plan of 20qud a month over 2 years….I was raging as I felt it wasn’t my mistake….but what can you do🤷‍♀️

It hasn't happened yet as we are still on the tax credits and yet to transfer, I'm just preparing.

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