Recovery of overpayments

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  • #19875

    I have just come across the following scenario (every one is different!!!!) which doesn’t appear to have come up in conversation here before.

    Revision of child tax credit 04/05 award.

    Full amount 04/05 £5431.20
    Less amount already paid this year £683.44
    Less amount you owe us from previous years £771.05
    Balance to be paid £3976.71

    All fine so far!

    Payments are as follows

    8/6/04 £311.52
    then every 4 weeks will be paid until 26/10/04 £311.46
    23/11/04 £312.07
    Your payments will then change to £415.28
    every 4 weeks until further notice.

    I phoned tax credits to find out the reason for this change and have been advised there is no predictable change this is when the OP has been recovered in full and payments revert to the “full award” I hadn’t been aware they were doing this and had naively thought the balance to be paid (once the OP was deducted) would be spread out over the years payments. Is that too simple

    I have now decided to treat this much as I would a predictable change by using the total amount paid up to 23/11/04 divided by number of days in that period and then the amount paid for rest of year etc etc.

    Any thoughts?


    Lesley, that is what I have been doing. Treating the period where overpayment is being recovered as one period and the period where no recovery taking place as another, i.e same as a predicted change.

    julie lankshear

    I emailed Lucy DaSilva and got the following reply


    Thank you for your email below.

    You do need to apportion each period separately as the annual amount for each period is different. This is because regulations have been put in place to prescribe LAs to use the net amount paid after the offset of any overpayment.

    Lucy Da Silva

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