Tax credits overpayment - predict their response?

[pinkstarbinks]

Hi ladies I've updated them today with oh's salary increase due to overtime. I've used their calculator and estimate we owe them £288-300. Would they give us options or decide how we repay? I only ask for financial planning purposes, as to whether I'm budgeting that from this months salary or spreading it over lowered payments for the rest of the year. I know I'll hear from them very soon regarding it but I'm just curious, whether anyone had a similar overpayment. Many thanks in advance.

 

[sethsmummy]

I think they will just reduce your payments for the rest of the year hun or even next year. xx

 

[MrsT&Ben]

My friend had an over payment and she set up with them to pay a certain amount off each month until the over payment was paid back. I'm pretty certain they are willing to work with you as long as you show willing!

 

[mum22ttc#3]

We've had a couple of overpayments in the past and they've always claimed it back by reducing payments for the rest of the year.

 

[Rainbow82]

We had an overpayment last year and they stopped payments for the rest if the year and said that they would take from this years payments but we are no longer eligible for any tax credits so they want it back in a lump sum when they confirm how much it is after 31st July. As you will still be eligible tins year they will just lower your payments to spread the cost for you.

 

[Abz1982]

See, this is what confuses me! it is based on LAST years wages yes? So next year is based on THIS years wages....So why does what you earn now affect what you get now? If it does then its really based on what you earn now along side what you earnt before.

I called them up and told them my wages were going up like 50% but because of that childcare went up £90 a week and we got £30 more a month..

 

[lindseymw]

When we had over payments in the past, they adjusted the payments for the rest of the year.

I got a bill for £200 for an overpayment but because we were no longer entitled to TC, we had a month to pay the full amount.

 

[pinkstarbinks]

Thanks ladies very helpful

 

[R_x]

If you are no longer entitled can you not pay it back monthly? X

 

[Logan's Mum]

I have an overpayment, and no longer entitled to tax credits anyway. I pay this monthly, lowest amount I can. When I return to work my salary will be less than when the monthly payments were set up. They have said I can reduce my payments because of it. From what I've experienced, they are helpful on the phone. X

 

[Ceejay123]

I got a letter from them last week - Apparently I was overpaid £18 last year! I sort of laughed at serious way this letter was written(as if it was thousands), and put it to one side. Forgot completely about it... Then got a reminder letter threatening me with action because I'd not paid it in 28 days! Safe to say- I paid the £18 very quickly after that. Ha. x

 

[R_x]

Should of payed £1 a month just to annoy them

 

[Abz1982]

When we had over payments in the past, they adjusted the payments for the rest of the year.

I got a bill for £200 for an overpayment but because we were no longer entitled to TC, we had a month to pay the full amount.

Its funny isnt it, how they assume that people just have the money sitting a bout....quite often people who have tax credits are living month to month! I know that if they say next year we have been overpaid that no way can we pay it back in 1 go despite what we earn as we already have debts to pay off so they would have to take the lowest amount possible

 

[Ceejay123]

Should of payed £1 a month just to annoy them

Hahaha - Would have been hilarious. I was surprised they didn't just take it out of my ongoing tax credits - Would have been so much easier than demanding i go online and enter card details. x

 

[Mummy May]

I had a massive overpayment last year 2k+ and I pay that back at £20 a week. This year I was overplayed again and they take £50 a week from my TC. It's a struggle! Xx

 

[smileyfaces]

We had a 700 quid overpayment and our weekly payment just got reduced by 40 quid a week till end of september

 

[pinkstarbinks]

Ouch mummy may, poor thing it's quite a steep hit. Well £54 would usually be paid to DF on weds we shall see how it pans out!