Tax Credit overpayment recovered from the current TC award

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    If anyone can help with this I would be most grateful.

    The claimant failed to advise the Authority of her award of Child & Working Tax Credit, this was not discovered until about a year later resulting in a significant overpayment. The claimant appealed against the recovery of the overpayment, which was subsequently dismissed.

    However during the hearing it came to light that the IR are recovering for the previous years award an overpayment of Tax Credit, from her current award. The chair has instructed the Authority to ‘consider its position’ with regard to being able to reduce the HB/CTB overpayment by using the Tax Credit award for the previous year as it should have been, without the overpaid amount.

    Obviously if this claimant had an ongoing claim for HB/CTB then it would be readdressed by taking the current years TC net figures when calculating their HB/CTB entitlement. However the claimant has stated that she does not wish to claim at present.

    So basically am I right in my understanding that the HB/CTB entitlement is calculated on what TCs they were actually paid at the time and not what has been subsequently recalculated. If so please can you let me know where I can find this in the regs.

    Many Thanks


    it’s not in the regs, that’s the problem. This whole thing about using ‘what they actually got’ instead of ‘what it later turns out they were entitled to’ is only DWP guidance.
    And they have not guided us as to what to do in cases where there is no current award of HB to be able to take into account the reduced ( by overpayment recovery) level of tax credits. these people lose out. ( and appeal)

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