Just received very large tax credit payment...

[misscph1973]

OK, so the background is that last year our tax credit payment stopped as I hadn't filled out that yearly form. As part of my new years resolution to get a bit more organised I filled out the form and I also had my accountant do my tax return (I was self employed last year and I now run my own company).

This morning I checked our bank accounts online and we had received in total more than £12000 in child tax credits and working tax credits!

I don't even remember giving my bank details to HMRC as my dh received the tax credits. He is registered blind but does not received any benefits. He is entitled to disabled persons working tax credits and child tax credits.

We both work and although we aren't exactly rich, we are not poor either. Or maybe I just never stopped living as a student ;)

I rang HMRC as I have received no paperwork to explain these transfers. She said that the transfers were not errors and that paperwork was in the post. She advised to check the figures.

I'm just not really comfortable with this and I really want the paperwork to arrive! I am thinking that there is a zero missing somewhere (my hand writing is atrocious and there are so many forms that has to be filled out by hand...).

Has anyone got any experience with overpayments of tax credits?

Are your childcare costs huge? I got a lot in the childcare element of tax credits but my whole year was about £7k. £12k for 10 months is huge. I would wait until the paperwork arrives before touching it, they will ask for it back even if it is their mistake.

well i suppose it could well be right. And fantastic if it is.

I would not spend anything just yet. Wait for the paperwork to come through and then see. Good that you have phoned them as it is proof that you have made an effort to find out about it.

Fingers crossed it will all be yours

dont spend it!

but if you have a higher interest savings account by all means transfer it to there

Don't worry, there is no way I am touching that money till I have had a good look at the paperwork and got someone else to double check it for me ;)

HellBent, our childcare costs are not huge, about £300 per month (we both work from home so we mainly work school hours and evenings).

I do hope that at least some of they money wasn't an error.

And thanks, helenium, for pointing out that I have tried to contact them, I hadn't thought of that, but of course that is logged.

Be careful,
I updated a couple of years ago over the phone and was sent nearly £1000 in a week. I phoned them to check this was correct and they told me it was but the paperwork was in the post. When it arrived they had completely omitted dh's salary and was basing it on mine with the childcare costs.
I have now not received any tax credits since last year and probably won't until at least June because of their cock up.

Good point, whoops, they could well have based it on one income only, that could explain it. So if you found the mistake and presumably reported it, did you keep the money, is that why you can't get any tax credit now?

Must admit, I am already dreaming of a holiday, I haven't been on one for more than 10 years...

I found the mistake and told them but they didn't ask for it back just adjusted the payments. They then wanted to pay me £7 per week for me to still owe them over £500 so I told them to stick it and not pay me anything until it had been cleared as I didn't want to be continually repaying money. I think this system is really complicated as they base it on earnings from previous years and my earnings this year are half what I earnt the year before as I was made redundant in Feb 2009 and whenever I call them to say I have temping work so my income changes the award never seems to change.

Right, I see, just a bit confused.

I know, it is odd that everything is based on last year, but I think it's pretty standard, it's the same in my native country Denmark.

I have also just read up on tax credits overpayments at Martins Money Saving Expert and the advice is the same over there - don't touch it, double check the figures. Common sense, I guess, but I was so confused when I saw those figures in my account - don't think there has been so high an amount in my account since I sold my house ;)

I wish they would send out the paperwork before the payments it would make life easier because it can eb up to 2 weeks before you receive the award notices

They paid me 12000 in error. This was after over 6 months of me ringing them and writing to them (recorded) telling them they were paying me incorrectly. They had missed a 0 off dh's salary

They stopped future tax credits and so we are paying them back that way. Which since we are entitled to the minimum will presumably take about 26 years.

Apparently if it is their error you are entitled to keep the money, but I haven't bothered to argue with them.

oh sorry meant to say the 12 grand was a one off huge overpayment, I had been having monthly overpayments for 6 months.

When the 12 grand landed I rang them (again) and basically went ballistic and said would they please stop sending me money I was not entitled to and did not want. The person who dealt with me that day actually managed to sort it out. Before then it had just been complete incompetence.

I tried arguing but still lost, It was their error they just kept reducing the payments down. They were paying me £50 then dropped it to £7 so that it wouldn't cause any financial difficulties that's the point I told them to stick it up their arse!!

We had this when I went back to work after DD1 phoned them to tell them reduction in my hours (made no difference to entitlement as only got the minimum anyway) anyway they then omitted DH salary off the whole thing paid us £1700 then after 7 months of giving us £250 a month (used to be in my salary) they decided they wanted it back (had told them every month by registered post that they had paid in error) then didnt get any tax credits for 3 years (including when dd2 arrived) we appealed saying we informed them and there error etc but they said tough then last year got the almighty hump about it one day emailed my MP (Ann Widdecombe) 3 weeks later had full refund of all missing tax credits plus monthly payments reinstated, they then farted about over £180 the award said I was owed but I hadnt received they said 'whoops we put wrong figure..tough' recontacted MP and we got £180 2 weeks later. If you unsure please contact your MP it seems to be the only time tax credit listen!

I see this is by no means uncommon... Amazing stories, thanks for sharing!

call them to check the information they have on file is correct,

otherwise, bear in mind they back date for 3 months from apllication so this could be 3 months worth....

EdgarAllenSnow, I did call them and she said to check when the letter comes, as she was not allowed to give out this info over the phone.

Whatever the outcome, this does go months back, more than 3 months, maybe up to a year, because we are both self employed (and we only arrived in the UK 18 months ago after years abroad), most figures that we gave in the past was estimates, but we filed tax returns in January so a lot of estimates just became actual, solid figures.

I am sure there is a mistake some where, but I so wish that we get just a little bit of this money...

Will update when I get the letter!

Right, finally got the letter this morning. From a quick scan the figures look right. The only thing I can see that is wrong is that my husband no longer works 16 hours per week (he did in the last 6 months of 2008), but 40 hours as I do. Obviously I need my husband to go over the figures again as I am crap with numbers ;)

Does anybody actually get £12000 tax credits in less than a year. That seems an awful lot.

I normally get my tax credit on a Monday but received it today but no child benefit that I also get on a Monday

Start a new thread if you need help with this as this is a zombie