Potential tax credits overpayment letter — Scope | Disability forum
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Potential tax credits overpayment letter

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Bob1234
Bob1234 Community member Posts: 4 Listener
Please help! 

Both myself and my wife are on pip

I'm on ESA SDP

One 17 year old child is on pip, in collage full time.

1 child on dla

1 child on nothing

We don't work due to illness and caring


My wife has been claiming carers for numberous years and as far as we knew the tax credits knew this.

We've just received a latter saying as she's Ben paid £3999 carers we MIGHT have been overpaid on tax credits?

We have to wait 2 weeks to find out, I've read that carers shouldn't reduce our tax credits if we are not waiting but can't be sure?

Some say it might be an automated letter that once reviewed should be fine.

Can someone please give us some advice on this please? Are we likey to get hit with a massive overpayment? Or based on our circs will it be okay? And if it won't be okay, how much are we looking at getting badly hit for?

Thanks 

Comments

  • poppy123456
    poppy123456 Community member Posts: 54,860 Disability Gamechanger
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    Carers allowance is taken into consideration as income for Tax credits. See link https://www.gov.uk/carers-allowance/effect-on-other-benefits

    I’m afraid I can’t tell you whether you’ll have an overpayment because I don’t know what Tax credits you receive or how they’ve done that calculation. 

    I’d advise you to get some expert advice from an agency near you. 
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • Bob1234
    Bob1234 Community member Posts: 4 Listener
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    Other topics in this forum have indicated that it shouldn't be an issue as such. 

    I get deductions from my esa because if my wife's carers so I don't understand why we'd get "hit" twice or why it's not been an issue prior (we genuinely thought we'd declared it) 
  • Bob1234
    Bob1234 Community member Posts: 4 Listener
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    Does tax credits get refused pound for pound? So is the worst case likey a tax credits overpayment of 4k?
  • poppy123456
    poppy123456 Community member Posts: 54,860 Disability Gamechanger
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    No, it is not £1 for £1. Tax credits is based on the previous years income unless there's a £2,500 difference and then it's based on the current years income. Please speak to an advice agency for some expert advice.

    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.

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