So, tax credits saying I was overpaid.

[Abz1982]

So, got out provisional statement and it says they have overpaid us by like 11k.....Still have to call them to clarify as it says "We intend to collect this back from future awards by reducing your payments under section 29(4) of the tax credits act 2002.

So, what im confused abou tis that that on 30th May last year I called, told them I was w2orking, my Hours, salary and childcare for 2014-2015......and my partners hours and pay.

THEY sent me a letter telling me my entitlement. THEY said I was entitled to £946 a month. NOT ME. Based on my earning the year efore and my earnings for the current year!?!?!

I was against them scrapping tax credits, but now It is clear its a broken system! BADLY.

Section 29(4) is:

(4)Where a notice states that this subsection applies in relation to an amount (or part of an amount), it may, subject to provision made by regulations, be recovered by deduction from payments of any tax credit under an award made for any period to the person, or either or both of the persons, to whom the notice was given.

So does that mean we have to pay it back?? Or that if we make another claim it will be deducted??

 

[Pearls18]

If you look back at your old letters, do they have the right information for your hours, salary, childcare etc?

 

[Pearls18]

To answer your question I'm not sure, it confuses the crap out of me, we're getting large amounts of credits at the moment as we are paying £1365 a month in childcare, but what I don't understand is that in September this will halve, so when they work out my reward won't it look like I've been paid all of my award first part of the year. And it's so hard for me to predict my income for the year as well, I just try to make sure I call them with every change.

 

[Abz1982]

If you look back at your old letters, do they have the right information for your hours, salary, childcare etc?

Yup, all correct!! Thats why I am a)annoyed and b)confused.

It clearly doesn't work if its based on the year before for earnings, BUT also your current year affects it as well.

Its not like we were rolling in it. I took home 22k, childcare was 19750 a year and monthly I spent £200 on fuel getting to work .
The year before on maternity I took home the min obv as just had SMP.

I have gone on again to their calculator and put it all in again and BAM, same figures as we actually got. So they pedal misinformation on their own calculator then??

 

[Pearls18]

Have you done the figures with the current year? Did you give an estimate of earnings for the year ahead?

 

[Smile181c]

I hate having to claim tax credits. The system is so flawed. If you ask the people on the phone how they actually calculate their amounts they literally have no idea. So you give them the information they require (whatever's on p60, nursery hours/pay etc) THEY work it all out for you (without telling you how they're doing it so you can double check it's correct) then come back to you at the end of the financial year to say that actually they've overpaid you by X amount and they're gonna reduce your payments for the coming year! Totally unfair. Can't wait til LO is out of childcare.

Feel your pain lovely

 

[Abz1982]

Have you done the figures with the current year? Did you give an estimate of earnings for the year ahead?

Yeah, and given last years salaries we wouldnt get anything. BUT if id last year as my maternity year again and put in the CURRENT childcare (as if I was working) its the same, well , its like 2k different but I assume thats because it would be as of this date.

Not had any other letters, and to be honest CBA calling them. Wont need to claim for childcare again anyway. And hopefully wont need to claim at all in the future.

 

[BellaBoo0512]

I hate having to claim tax credits. The system is so flawed. If you ask the people on the phone how they actually calculate their amounts they literally have no idea. So you give them the information they require (whatever's on p60, nursery hours/pay etc) THEY work it all out for you (without telling you how they're doing it so you can double check it's correct) then come back to you at the end of the financial year to say that actually they've overpaid you by X amount and they're gonna reduce your payments for the coming year! Totally unfair. Can't wait til LO is out of childcare.

Feel your pain lovely

I had to ring them to change my income and childcare costs as I've changed jobs from part time to full time. I asked the lady how I can work out how much my payments will change to and she told me to use entitledto.co.uk. On that you can put your previous years income and current years income and it should give an accurate amount.

Also if your earnings go up by 5k or more the first 5k is ignored. Mine and hubbys income for the year is 27k but our tax credits will be worked out on 22k.

So confusing!

I hope you manage to sort things out OP

 

[Abz1982]

I hate having to claim tax credits. The system is so flawed. If you ask the people on the phone how they actually calculate their amounts they literally have no idea. So you give them the information they require (whatever's on p60, nursery hours/pay etc) THEY work it all out for you (without telling you how they're doing it so you can double check it's correct) then come back to you at the end of the financial year to say that actually they've overpaid you by X amount and they're gonna reduce your payments for the coming year! Totally unfair. Can't wait til LO is out of childcare.

Feel your pain lovely

I had to ring them to change my income and childcare costs as I've changed jobs from part time to full time. I asked the lady how I can work out how much my payments will change to and she told me to use entitledto.co.uk. On that you can put your previous years income and current years income and it should give an accurate amount.

Also if your earnings go up by 5k or more the first 5k is ignored. Mine and hubbys income for the year is 27k but our tax credits will be worked out on 22k.

So confusing!

I hope you manage to sort things out OP

Thta the thing, I used entitled to AND their proper one. And called them every time childcare costs changed as they changed 3 times - one of those times they entered it wrong so I had to call to correct them.

Its so flawed. Cos next year technically I will be entitled if I go back to work as this year only earned like 3 k before tax as was made redundant. So if I go back next april, childcare will be again near £360 a week and I WONT get a job to cover that so will need tax credits till DS is 3 in sept. But that letter insinuates that if we get awarded they will instantly take off 11k for the overpayment.

Part scared to call and them to then say well no, actually we want it all now. Id happily take that to court as we did nothing wrong.

Now have to explain to SAAS why I am not working and they want to see copies of the bank account I am using to live from. Its joint and OH says no, they can jump for it as he doesn't want them seeing HIS financial info etc

 

[missk1989]

They did this to us as well. Glad to be off them tbh. Nothing but hassle!

 

[Dinah93]

Call them, they can't demand it in one go. However if you don't claim in future they will come for it from wages instead, so not claiming won't help you, at least it will be paying it off even if you don't see it.

 

[Abz1982]

HA, they would be struggling to get it from wages! I maybe will...as I would love to know why they can give based on cetain info, then take away based on teh same info.

Everyone is up in arms that tax credits are basically slowly being withdrawn, but I feel that really it is the best thing as so many folk will probably be more financially secure as they will know what is what!

 

[belle254]

I'm a single mum of two toddlers and in march last year separated from the kids dad. Somehow, even though I rang and told them everything immediately and have always done everything by the book, have ended up having to pay over £1000 in 'overpayments' in the last 2 years! I went to the CAB for advice in the end as I was so confused by the whole system. I hated the fact that I've tried to stay out of debt my whole life and succeeded and then end up owning money through no fault of my own!
After the meeting with the CAB, the employee talked to the tax credits people and worked out that a) half the debt was actually for my ex partner and no mention was made of that in the letters (money grabbing sick *******s!) and b) as I was living on the basic minimum to get by (raising my 2 children at home, not currently working) I didn't have enough money to pay them back at the end of every month and explained to them why. They agreed to put it off for 6 months. 6 months later had a threatening later and had to ring them again. Will probably continue until I find work and then have to pay it back slowly.
Sick how the system meant to protect and help the most vulnerable of our society is actually screwing up and making them fall into debt!
Keep strong ladies, they are tiresome but they make is so so hard so people won't bother!