Child Tax Credit overpayment

[Snafu03]

Last year we received a large overpayment bill from Child Tax Credits. This was due to a) Them not acting on information given to them over the phone and b) us not understanding what payments we were entitled to.

HMRC admitted to partly being at fault as the details of the phone call were on file but amendments werent made.

The agreement was that the overpayment would be deducted from future payments (eg they didnt pay us any money).

All was fine until they changed the entitlements this year. Even though our circumstances havent changed we are no longer eligible for payments. This means they cant deduct the overpayment and want the whole lot back.

I understand that we can pay back in installments that are means tested but I think it unfair that we are now in this predicament because they have moved the goalposts.

Do you think we stand a fair chance of getting some of this debt written off?

[factor-fiction]

It's not a nice situation to be in for you but I doubt very much that there is a reason to write it off. Presumably you have more income coming in now so can afford to pay it back in instalments but they are demanding it in one go are they? Well, if you haven't got the money they are going to find it difficult to get a lump sum off you so I think it's worth proposing a system of instalment payments over a shortish period of no more than 12 months. How much do they want?

[friedgreentomato]

FYI it was the government that changed the entitlement by reducing the income band.

[Snafu03]

Hi, yes - they changed the band. We still have the same income. We still owe just over £6000.

[factor-fiction]

This may help. This says they do consider repayments over 12 months or even write it off sometimes
http://www.moneysavin...rking-overpaymen#over
There's a forum here too.
http://www.consumerac...x-Credit-Overpayments

[Snafu03]

Thanks Factor - will look into the links.

[cathfromsaron]

i sympathise because i also have an overpayment to repay, but for much less!

they tap away on the computers when you ponhe up and then payments rise and you are never quite sure whether it's right!

anyway, always send confirmation in writing after every call now!

[Snafu03]

well thats it Cath. you give them the info, they send out a revised statement. But its like an energy bill, noone totally understands them.