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Tax credits overpayment

Tax credits overpayment

I have a client that Tax Credits are chasing for overpayment made in 2009/10 year. Despite the difference in actual v estimated figures given during the year being less than the income disregard, the guy i was chatting to explained that income disregard does not come into play when figures have been estimated previously. I would have thought this was the case for the majority of people on Tax Credits! Has anyone had any problems using Income Disregard  levels before?


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29th Dec 2012 11:04

I think that you are both wrong

I think that you are wrong because it matters not whether the difference between estimate and actual figures for a year fall within the income disregard.  The income disregard is only applied in comparing the actual figures with the previous year's actual figures.

But I also think that the advisor is wrong, because the income disregard is still applied to the prior year income when assessing current year award, whether current year is estimated or not.

You may still have a case for an appeal, depending on the facts, but you may run into problems if the notification requirements and deadlines and/or appeal deadlines have not been met.

With kind regards

Clint Westwood

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