Had a Tax Credit Review Letter any help?

[smokingjam]

recently just had a tax credit review through stating wages that we have told them and wages they have decided to check out on myself and partner

i know this was stupid but for the current tax year 2011/2012 i declared my partner less than what he's on.

what will happen now? will the tax credit awad be stopped for 2012/2013 year?

any advice or help would be appreciated

[assisted blonde]

I think they will be and you will have to pay back the overpayment.

[ErikaPNP]

Not necesserily. It's not possible to say what will happen in your particular case until you get your new award notice specifying what you are actually entitled to. How they recover the overpayment depends on your actual entitlement.

 

If you are entitled to full tax credit, they will recover the overpayment by reducing your ongoing payments by 10%

 

If you are entitled to a reduced rate of tax credit, they will recover the overpayment by reducing your ongoing payments by 25%

 

If you are only entitled to the family element of child tax credit, it is only then that they can recover at 100% of your ongoing payments (effectively stop paying you).

 

They can also impose a penalty on top.

[lis79]

Not necesserily. It's not possible to say what will happen in your particular case until you get your new award notice specifying what you are actually entitled to. How they recover the overpayment depends on your actual entitlement.

 

If you are entitled to full tax credit, they will recover the overpayment by reducing your ongoing payments by 10%

 

If you are entitled to a reduced rate of tax credit, they will recover the overpayment by reducing your ongoing payments by 25%

 

If you are only entitled to the family element of child tax credit, it is only then that they can recover at 100% of your ongoing payments (effectively stop paying you).

 

They can also impose a penalty on top.

 

Hi Erika,

 

Is it true that tax credits investigations will be managed jointly with dwp once universal credit has been introduced?

I've just read this:

http://www.dwp.gov.uk/docs/single-fraud-investigation-service-wr2011-ia.pdf

and it basically says, that they will look into legacy tax credit claims, once the single fraud unit is established.

 

Since most tax credits investigations look only at particular tax years e.g. (only 2010-2011), will they start looking into previous years which haven't been reviewed.

Is it likely they will prosecute people for errors years later?

 

Thanks for your time

Edited March 17, 2012 by lis79

[scotgal68]

and it basically says, that they will look into legacy tax credit claims?

 

 

You're getting mixed up legacy benefits is the name used to identify all benefits that will migrate onto the universal credit system such as IS IB JSA, Tax Credit isn't a legacy benefit and it doesn't say the single fraud investigation will be looking at previous TC claims, it says it will have responsibility for investigating HB CTB WTC as well as legacy benefits ( ie IS DLA etc) .