why does tax credits give you double payments when you change just your bank account?

Question

ive just changed my bank acc over and tax credits paid me twice why?

Answer 1

so they can mess you about and ask for it back, saying they overpaid you.

Answer 2

Keep a precise record of all contact with the Tax Credits Office (TCO), including dates and names of people you speak to. Also keep copies of any letters you write.



I suggest you get a copy of COP26 (What happens if we have paid you too much tax credit?) or download it from the HMRC website http://www.hmrc.gov.uk/leaflets/cop26.htm



From the information you have given, it is clear that you know that a mistake has been made. Under those circumstances, TCO would expect you to repay them.



It would be sensible to place the double payment(s) into a high interest account (you can get nearly 6% by shopping around) until the time comes for you to give the money back. That way you won't spend it and cause yourself possible hardship later and you'll also earn some extra money too.



Non-taxpayers can receive interest gross (free of tax) by completing form R85 http://www.hmrc.gov.uk/taxback/form-r85.htm.

Answer 3

Not sure but I would tell them. If they find out later down the line that you have been over paid..they will want it back.

Answer 4

I would contact them straight away, as they will expect you to pay it back if you are not entitled to it, even if it was their mistake.