Friends now got me worried I will have to repay tax credits!

[Abz1982]

So, we got CTC last year, as it was based on the year before salary when I was on maternity and OH earned a lower wage. Childcare was £259 a week after vouchers. I was made redundant in april 2014 and I informed them when I got a new job and the hours and the wage per hour, and so yearly wage. Now this put is together for 2014/15 OVER the threshold, but they still said we were entitled to childcare paid. We have 2 kids.

My friend has 1, who requires no childcare and her wage went up for 2014/15 compared to her 2013/14 wage, to over the threshold and they stopped hers and sent her an overpayment letter for the Full amount.

I am now crapping myself we are going to get a demand for 11k!!! I am calling them tomorrow to inform them of my redundancy etc.

 

[kristel_]

This happened to us. Although it's stressful and wasn't our fault they were having none of it. We just gave up in the end and agreed to pay it over 10 years at 0%, took about 5 mins on the phone to set up. If you are overpaid you have a right to pay it back over a period of up to ten years and they can't ask for bank statements and income/expenditure etc.

If it's not your fault and you kept them fully informed i would raise a dispute if they do come back and say you were overpaid.

 

[Pearls18]

If you kept them informed Im sure you wouldn't owe, I give an estimation for the year ahead at the start of the year and every time it changes. Your friend is in a very different situation, the childcare element is much higher than without as is having 2 children so you can't compare.

 

[baileybubs]

It's highly possible you've had an overpayment but not necessarily the full amount. Somehow I've recently been overpaid apparently and owe them £1000 back and I've no idea how to be honest, but they are making me pay it back over the next 6 months. I'm in the same situation now where I was on maternity last year, and I'm starting a new job next week which is much better pay so I'm worried next year they'll say they've overpaid me!
As a PP said they can't demand it all back straight away and chances are it isn't the full amount anyway. If you and your partner earn less than £25k between the 2 of you then you are still eligible for some tax credits and childcare help.