Can they stop my tax credits?

Question

I was overpaid child tax credits a couple of years ago, now they are telling me i can no longer get tax credits because of this, my son is 13, my husband lost his job recently but now has managed to get a labouring job for the minimum wage, i am on the sick from work and only get half pay, even though i told the tax credits people this they still say i am not entitled to anything can they really do this? we are now stuggling to make ends meet.

Answer 1

There are many variables to this. For starters we need to determine why there was an over payment in the first place. the only way to address this is by seeking professional support. Visit your local CAB or Social services Department and ask to see a Welfare rights officer, they will assist you free of charge.

You do have to pay an over payment, unless it is an official area that caused it, however there are rules about how this is to be collected back and the amount they can take off your current award. seek advise on this ASAP as further information is required with regards to your circumstances.

With reference to the answer below, it has nothing to do with the DWP nor the Tax Office (Nosey Parkrer , if you don't know, don't post). - the DWP administered Working families Credit about 5 years ago things have moved on, ,,,, the challenge against an over payment is a legal one and you need support to do this, hence why Parker's friends didn't win Donot talk to the Tax Credit people (HMRC) without first getting professional advice, Guidance states where the error is theirs the debt may be written off and is not recoverable.

Depending on your situation you may be able to ask for 'top up payments and/or limit the amount being paid back each week. they must also take into account hardship taht it causes

Answer 2

You need to speak with DWP and the Tax office in respect of this.  There has been a big legal political wrangle over taking back overpayments from a number of people  and apparently they can do this. Even though it has been there mistake in the first place. They can collect on overpayments anytime up to seven years after they occurred.

You know years ago I was told the DWP organise your tax credits for you, by the DWP.

They can collect even if it was there error. I know this 100% because it has happened to those closest and dearest to me.

They are therefore not written off as the post above suggests.

If this were so my friends and I would all claim our overpayments demands back in respect of the proposed written documentation.

However, if someone felt nervus about doing things for themself than yes seeking help from the Citizens advice bureau would be useful as would seeking advice from the DWP. Who would orgainse a manageable figure to deduct from benefits with regards to any outstanding overpayments, the rules specify a certain percentage which can not be exceeded.