tax credits have made a mistake - what will happen

[mumj18]

I've put this in here because it has more traffic than the finance area and I'm really worried so would like some advice.

Hoping someone can shed some light as they are never great on the phone.

Long story is that last year I was on mat leave when I first put in a claim. I had the intention of going back to work so gave an estimation of that years earnings based on the 4 months or so I'd be working in that year. I then later decided I wouldn't return to work so phoned to inform them of this and to say my income would be £0 - my mat pay was under £100 per week therefore completely discounted from income.

This year when receiving my awards notice it had my income last year on it as the estimated amount, which I had definitely updated with them. So phoned up and it got sent to another dept to deal with. I then get a letter saying thanks for telling us your income has changed but unfortunately as it is more than 30 days after 31st July we cannot rectify this. They thought I had been phoning to say I got my income wrong when in actual fact I was phoning to say THEY had got it wrong.

Spoke to someone today who says yes I did phone to change income to £0 and is sending a form to dispute last years award. Will I have to pay back money???

I'm really worried I'll owe them money as things are tight enough as it is. It was their mistake not mine.

She's changed it so that this year it is now based solely on my partners income but obviously we are 6 months into the tax year so could mean even more to pay back.

I'm so worried so any advice would be greatly appreciated! Thanks.

 

[mumj18]

Should probably add that the original estimation I gave was £3700.

 

[xcharx]

I don't really know babe but I'm paranoid ill end up oweing them money too!!
Cx

 

[lucy_x]

Shouldnt do, You would be entitled to more money if you had put your income down to £0.

Im confused though, You shouldn't be receiving ANY working tax credits if your income is £0 UNLESS you put yourself in as self employed. They would simply send you your child tax credits - so in that case you most probably will have to pay them something back from your WORKING tax, because you wouldn't have been working any hours (unpaid or not) if you see what i mean.

However, tax credits are brilliant at not fleecing their money back, they will come up with an agreeable payment plan x

 

[mumj18]

I see what you mean, could the working tax credits all be for my partner or will some have been mine?

If we have to pay money back it can't be helped but hopefully they will just lower the payments we get from now on.

They knew I was employed (on mat leave) then in the same phone call where I adjusted income to £0 I would have told them I was unemployed so of they haven't factored that in again it would be there mistake I think.

Thanks for the replies, any more info welcome!

 

[mum22ttc#3]

The working tax credits I would have thought would have been based on both you and your partner. We used to be entilted to them and even though it was me doing the claim it was based on joint income.

If you end up owing money they will just reduce the amount that you are entilted to per week, we owed them 750 at one point (their mistake not ours) and our payments were reduced by 30 pounds per week until it was cleared.

Hope this helps

 

[mum22ttc#3]

Also if you take your money out of the equation then your partner may be entilted to more working tax credits then he would have been with your wage so you may not end up paying as much back iyswim?

 

[mumj18]

Yea I get what you mean hun, we're already paying over £1500 back because I underestimated OHs income by £1000 so hopefully that will reduce. It's always just a waiting game with them x x

 

[mumj18]

Yea I get what you mean hun, we're already paying over £1500 back because I underestimated OHs income by £1000 so hopefully that will reduce. It's always just a waiting game with them x x