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Tax credits overpayments
9 Answers
I have been overpaid by the tax credits to the extent that they are now zero.
I found this info on their website:
Example 2 “You are currently getting the family element of Child Tax Credit only with a reduction due to your income. Your tax credit payments were £545 a year, or £10.50 a week. The Tax Credit Office will reduce your payments by 100 per cent - so you'll get no more money until the overpayment has been paid back.”
So say for instance I’ve been overpaid by £5000, the letter I got states that any overpayments will be deducted from future payments but my future payments will be nil for 2011-2012. So does this mean that instead of actually physically paying them back, I’ll get nothing until the next tax period 2012-2013 when my payment will be at approx £40 p/week as stated in my letter??
I found this info on their website:
Example 2 “You are currently getting the family element of Child Tax Credit only with a reduction due to your income. Your tax credit payments were £545 a year, or £10.50 a week. The Tax Credit Office will reduce your payments by 100 per cent - so you'll get no more money until the overpayment has been paid back.”
So say for instance I’ve been overpaid by £5000, the letter I got states that any overpayments will be deducted from future payments but my future payments will be nil for 2011-2012. So does this mean that instead of actually physically paying them back, I’ll get nothing until the next tax period 2012-2013 when my payment will be at approx £40 p/week as stated in my letter??
Answers
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I think the £5000 was a hypothetical figure.
Rather than use all these examples it might be helpful to tell us the actual figures.
But I still stand by my first answer in which i referred back to what you say you were told by the Tax Credit people: "so you'll get no more money until the overpayment has been paid back.”
Rather than use all these examples it might be helpful to tell us the actual figures.
But I still stand by my first answer in which i referred back to what you say you were told by the Tax Credit people: "so you'll get no more money until the overpayment has been paid back.”
The family element is the amount you get if your income is quite high & you are not therefore entitled to anything more. It is about £10.50 p wk. What happens is that, if the family element is the only amount of Tax Credit you are entitled to they remove 100% of it to go towards recovering the overpayment. This goes on every year until the overpayment has been fully recovered, PROVIDED that you continue to be entitled to the family element.
If you cease to be entitled to the family element (which is reviewed each year when your annual declaration is done) and are therefore not entitled to Tax Credits at all, they will contact you to get the money back by direct payment by you.
Tax Credits are complicated. Are you satisfied that the overpayment is your fault? If you have any doubt it would be a good idea to get someone such as your local CAB or other welfare benefits advice agency to check it.
If you cease to be entitled to the family element (which is reviewed each year when your annual declaration is done) and are therefore not entitled to Tax Credits at all, they will contact you to get the money back by direct payment by you.
Tax Credits are complicated. Are you satisfied that the overpayment is your fault? If you have any doubt it would be a good idea to get someone such as your local CAB or other welfare benefits advice agency to check it.
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