Demand for £3000 in overpayment of Child/ Working Tax Credits.

[ostell]

My daughter has received a demand for repayment of £3000 for alleged overpayment of tax credits. She has two children, 10 & 1. Works 30 hours per week.

Current boyfriend, and father of youngest, moved in to the home in August last year. He has not worked since they have been living together (visa problems with non European passport) and therefore no income since they have been together.

HMRC have taken his previous years income into account when calculating the amount due, despite being shown a P45, and have taken the same sum into account for this years calculations.

Any one got a firm grasp of the rules to say what is wrong with this seemingly inequitable situation?

Haven't yet got a chance to chase through the rules myself but will be doing so as soon as I can. HMRC are quite insistent that the money is owed and must be repaid within 4 weeks.

[Kati]

Re: Demand for £3000 in overpayment of Child/ Working Tax Credits.

Tax credits payments are based on the previous years income, so this years tax credits would rely on last years income.

Here's the gov.uk information on overpayments: https://www.gov.uk/tax-credits-overp...s/overpayments

[ostell]

Re: Demand for £3000 in overpayment of Child/ Working Tax Credits.

It seems rather bizzare that income that was not available to my daughter is now being used to calculate her benefit when there was no income when she had to declare him.

[Kati]

Re: Demand for £3000 in overpayment of Child/ Working Tax Credits.

This guide might help you make sense of it :tinysmile_grin_t: