Back in January, I phoned the tax credit helpline and told them that I would be starting a new job in February. I had already done the calculation myself and knew that they should stop paying ALL tax credits to my wife and I. I even told them to please stop all future payments as I did not want to have to pay back any over payments. They told me to call back when I had started work.
So, I called back when I started work, at the beginning of February, and told them all the details again. I asked them again to stop ALL tax credits to my wife and I. For the second time, they asked me to call back, this time at the beginning of the new tax year, "because we have to register the new change for the new tax year separately". I questioned why the change from one tax year would not automatically be carried over to the following tax year, but they insisted I would have to call back.
Beginning of April 2013, I called back once more to re-confirm that indeed I was still working and earning the same amount and therefore that I did not want them to continue paying the tax credits.
Suffice to say, they continued to pay the previous levels of tax credits and I now have received letters (not just one!!) saying I owe them several hundred pounds.
My questions to you all:-
1. Has the tax credit department made a mistake?
2. Do I need to pay back this money? I have read (Martin's Money Tips Wed 19 Jun 2013) that if they make a mistake I do not need to do so?
3. What do I need to do to ensure that I don't have to pay anything back if indeed the above is true?
Thanks in advance, Stuart
So, I called back when I started work, at the beginning of February, and told them all the details again. I asked them again to stop ALL tax credits to my wife and I. For the second time, they asked me to call back, this time at the beginning of the new tax year, "because we have to register the new change for the new tax year separately". I questioned why the change from one tax year would not automatically be carried over to the following tax year, but they insisted I would have to call back.
Beginning of April 2013, I called back once more to re-confirm that indeed I was still working and earning the same amount and therefore that I did not want them to continue paying the tax credits.
Suffice to say, they continued to pay the previous levels of tax credits and I now have received letters (not just one!!) saying I owe them several hundred pounds.
My questions to you all:-
1. Has the tax credit department made a mistake?
2. Do I need to pay back this money? I have read (Martin's Money Tips Wed 19 Jun 2013) that if they make a mistake I do not need to do so?
3. What do I need to do to ensure that I don't have to pay anything back if indeed the above is true?
Thanks in advance, Stuart