Tax credit overpayment- advice required!

ailurophile_2 · 21 April 2006 at 10:40AM

Hi!Any advice on this one greatly appreciated!Just yesterday,I received a letter telling me that I owed nearly £445 in overpaid tax credits-could I pay it promptly.Well,nearly four years ago ,when in a different job,I did indeed apply for W.T.T.,on the advice of one of the T.C.team ,via the telephone.I asked the worker if the taxcredit was based on what I HAD earned in that last p60,or what my EXPECTED earnings would be-I had been unemployed for nearly a year,(having been made redundant) and I duly applied on line,quoting the relevant details from my p-60.I was told that it would last for a year,and was duly awarded it.In the meantime,I got the job I'm in now,which is better pay than the one for which I claimed Tax Credit and therefore,I'm no longer entitled to it(which obviously,I accept)(...Are you still awake?!Good!!) I suppose the crux of my question is,as I applied in good faith on the advice of one of the T.C. team (with no wish to claim anything to which I wasn't entitled),and as my p60 was based on at least sometime when I was still unemployed(all of which info. I gave to the Tax Credit Advisor over the phone),and having informed them when my cicumstances changed for the better,but was still told I was entitled to it for a full year anyway-large pause for breath-where do I stand?!Any contributions greatfully received(both written and financial-joke re. the financial bit!-!!! ):D Thanks in anticipation!!!

CIS · 21 April 2006 at 10:50AM

I dont think you'll get anywhere with them , but you could try, which I suggest you do:

The rules for tax credits state that you are responsible for keeping any details updated and avoiding overpayments, this includes being a mind-reader and knowing that 6 month down the line you'll get a job.

They didn't miss-advise you at the time as they gave you information based on your current details, you where eligible. They're where also right in what they said, in that the award does last 1 yr, but it still must be updated as details change.

hjb123 · 21 April 2006 at 10:50AM

You need to speak to someone at your local Citizens Advice Bureau who will be able to tell you what to do and offer advice! Have you got records of who told you what etc? You can always try and fight it but I would have thought that they will still make you pay it back - it can often be paid back in installments or deductions from current benefits although individual circumstance are different so it may be different for you - it probably depends on how much income you now have coming in.

It may also be worth you looking at the following links about overpayments - the first one is from the citizens advice website!
http://www.adviceguide.org.uk/b_ove...tax_credits.pdf
http://www.hmrc.gov.uk/manuals/ntcm.../ntc0780310.htm

There was another thread on here recently about overpayments of tax credits:
http://forums.moneysavingexpert.com/showthread.html?t=185399

ailurophile_2 · 21 April 2006 at 2:13PM

Thanks to both of you for taking the time to reply-as I said,this was all nearly four years ago now,so-surprize,surprize!-I don't have any details.Everytime I have tried to contact them in the past,I have not been able to get through.When I initially applied, I was given conflicting advice by 3 different people,who were clearly as clueless as I am when it comes to tax credits!I have asked for an appeal form-again,I couldnt get through to the number on the letter I got yesterday(it was constantly engaged),and found a slightly different one on the web.When I got through,the girl on the phone said that my letter had the wrong contact no.on it anyway!!Actually,I suppose an appeal form would be pointless four years after the event,(wouldn't it?)re;the usual 28-day malarkey. :mad: How annoying!Any further insights very much appreciated-thanks for your time and help so far! :T !

hjb123 · 21 April 2006 at 2:19PM

I guess what they are going to say is that you should have informed them when your income went up or your circumstances changed. When you get the appeal form get help from someone to fill it in - people at the Citizens Advice Bureau or your local Welfare Rights service will be able to help and advise you what to do - many of them will also have copies of the appeal form for you to fill out

ailurophile_2 · 21 April 2006 at 2:46PM

Aha!But that's my point,you see-I DID inform them of my change in circumstances,but was told by the same person that I was STILL entitled to claim for a year nevertheless.Essentially,I suppose,my problem is that I can't prove it.

hjb123 · 21 April 2006 at 2:53PM

Right sorry bout that, misunderstood/read the post! So when did your circumstances change? I think that the best thing you can do is get some professional advice - from the CAB who will be able to help you get sorted but without any proof etc I dont know how far you will get on this one!

They will probably expect you to pay it back in installments which over a year on the figure you quoted earlier would be jsut over £37 a month - you can always aske them to let you pay it back over 12 months - they shouldnt be able to expect you to pay it all back at once - I hope they cant anyway!

System · 21 April 2006 at 6:16PM

From your letter I take it that the overpayment is for the 2003/2004 tax year when tax credits were first dealt with by the new tax credit office and there were numerous problems with the white elephant computer system our government paid a fortune for.

Unfortunately previous years income is used to work out an initial award and if your income changes significantly and especially late in the tax year it may mean that the credits you had received were too high and repayable. If the award continues into the next tax year they can deduct your overpayment from that award. If however you are not entitled to any tax credits at all the following year they will ask for repayment.

However, when you applied I think they could have amended your income details to an estimated figure for that year since you had been unemployed in the previous year and your P60 income was not representative.

You should have received a booklet and appeal form with the request for payment. If you dispute the overpayment they will review the case and may remit it. If they don't they will pass it on to their Debt Management team and you may be able to negotiate time to pay.

HTH

Tom_Saunders · 21 April 2006 at 8:24PM

by over £1000 last year, i sent them a begging letter and the let me of it all!!

message me if you want some advice, it cost me 30p and saved me £1,300!!

pammy14 · 22 April 2006 at 10:35AM

I have posted previously re my sons overpayment of £500.00. He has appealed had it denied and has sent another letter to Preston about 3 weeks agoo. No reply but now a demand for payment from Glasgow. What a farce. They were entitled to is anyway but the forms apparantley never reached Preston, so as he is still on low income how can he pay back £5000.00 in one year thats £100.00 per week , imposible with 3 children to keep.

pammy14 · 22 April 2006 at 10:37AM

made an error there meant to type £5000.00 overpayment, guess he would be well pleased if it was £500.00!!!!

Tax credit overpayment- advice required!

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