Tax Credits Overpayment

[Jock82]

Hi, okay, so I stopped getting hours at work last October, and received my P45 in December. However, since that time I have been receiving around £50 a week in working tax credits. I know I should have told them waaay earlier than this, but I've had alot on my plate (depression), and it hasn't been top priority until now.

 

I know I should contact them ASAP, explain everything and start repaying it - and that is what I will do unless, if, and it's a big if -

 

If there is any way I can get the payments to stop coming from Working Tax Credits without having to reveal that I've been receiving them whilst not working for the past 7 months? I'm aware in this scenario that I would still need to pay off the debt someday, but I just don't fancy paying it off today as I'm not working, and trying to get my life back on track.

 

If anyone has any clever ideas, I'd love to hear them. At least that way I could stop myself getting any further into debt. I assume most answers will be along the lines of contact them and admit all though.

 

Thanks anyway folks

Edited May 22, 2012 by Jock82

[cerberusalert]

Moved to the benefits forum.

[Stan Lee]

TBH, it's not kosher to be asking how to effectively commit fraud; I know ErikaPNP has said as much in previous threads. That being said, I can understand you're stressed about this, although just now you are presumably dealing with an act of omission, -- you've not told them about a change of circumstances -- as opposed to actually phoning up and lying to them by saying that you've just finished work recently. I don't really know an awful lot about tax credits, but I have heard it said that they tend to be more lenient about overpayments as opposed to the DWP (but you're not signing on as well, or are you?) Better that you tell them than something pops out of a data match at their end, and they get in touch with you. Also, it's a long way off, but from April next year I believe tax credits may well come under the broader umbrella of universal credits: I'd rather deal with the HMRC now than potentially have to deal with the DWP fraud squad later next year. I'm sorry if that's not the answer you want to hear, but I believe it will be better if you phone up HMRC and try and negotiate a payment plan.

[Jock82]

Thanks for your reply. I'm not exactly trying to commit fraud as I'm aware the overpayment will always be on my file, and I'll have to pay it off sometime. Also, I'm not looking to lie to them - was just looking for any suggestions about how I could get the payment stopped now and deal with the overpayment debt later. And no, I'm not signing on.

 

You're right though, and I'll probably just have to bite the bullet and get in touch with them. I've hopefully got a new flat and part time job sorted, so I'm just worried they are going to demand some unmanagable repayment plan and knock my plans off track a bit.

 

Still, it's my problem, and I'll have to deal with it. It's good to talk and all that, cheers man.

[Stan Lee]

Sorry if I misunderstood your original post. I don't know how reasonable the HMRC are with repayments- if you don't get a reply here you might want to consider enquiring with your local welfare rights. Part of their remit is negotiating on the client's behalf in OPs; might be worth a chat.

[Gbarbm]

The best thing to do is ring to report a change in circumstances.

I don't know your personal situation, but if you have a child(ren) living with you then you may still be entitled to claim child tax credit(CTC) and the overpayment from the earlier period will be deducted in instalments from the subsequent award.

However, if you are receiving working tax credit (WTC) as a single person and are no longer entitled to claim then technically, the tax credit office (TCO) can demand the amount overpaid in full.

You can request time to pay and can negotiate this with TCO regarding the amount and date repayments commence. TCO will expect you to complete an income and expenditure (I & E) form to establish the repayment amount.

Ring them as soon as you can to sort it out as it will

Put your mind at rest.

Kind regards

Gbarbm

[Lilly_Monroe]

I was overpaid - I rang them and we have set up a monthly repayment plan - there was no nastiness no threats they split the amount over a year for me.

 

The number to request this is 0845 3021429 they will help and go through all the details with you - and set the repayment plan up.

I believe these people do not mess about, so best to contact them if you are aware of a problem.