Tax credits under payment

fabwitch_2

If those of you who were over paid have to pay it back . What about those of us who were under paid . Since 2002 my IB was taking into account for our tax credits and we ended up getting £38 a month tax credits. This year I got my tax credit forms and my IB was not mentioned and they said tax credit was going up to £200 a month. A massive increase. I phoned them up as I assummed it was a mistake, but was told because I was on IB before 1995, it should never have been taken in to account for tax credits. When you have been putting my IB on all previous claims I was told I should be intitled to a refund. Yet I have just found out that if you have not been paid enough tax credits you can only get three months back dated. How is this fair when they can demand the money back from those who were over paid in the last few years but not give refunds to those who were not paid enough. Utter madness

MRS_TO_BE_2

Write to them and ask for an explaination. State you have always declared IB and if it is not taken into account you would like the underpayment paid.

Too easy to fob you off on the phone.

MRS_TO_BE_2

by the way I think the 3 month rule in when you tell them about a change not official error

MRS_TO_BE_2

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04403.htm

just found this guidance as thought you may have been misadvised by hey its true about the pre 1995 thing! So looks like official error to me

DreamerV

The renewal forms ask you to declare any taxable benefits, so if you declared that benefit which isn't taxable if it was paid before (april I think) 1995, and for which invalidity was payable, then it's not what it said on the form. So I don't think that's an official error...more something you put down, which you didn't need to. Still, you should get back any underpayment for the whole of the previous year, there's no 3 month limit on that (just on changes of circs)....as you would have just declared your previous year income during this renewal period....so you'll get your correct money for this year.....and perhaps last year too to an extent if by not declaring this amount that you don't need to, it brings your previous year income to less than what you improperly declared the year before. In any case, you should still appeal...as it's always worth seeing if they would be willing to pay back the way, but I think if they did, it would be out of goodwill.

hotblu

MRS_TO_BE wrote: »

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04403.htm

just found this guidance as thought you may have been misadvised by hey its true about the pre 1995 thing! So looks like official error to me

How's it an official error when the customer supplies the information? If you look at the following link...

http://www.hmrc.gov.uk/forms/tc600-notes.pdf

and look at page 18, it states it their clearly not to include it. It is very easy to blame HMRC (TCO) but ultimately you have supplied the information which is incorrect.

With regards to claiming the monies back I would advise you follow the appeals process in full and then go to the ombudsman... maybe even get your MP involved to give it more clout.

Hotblu

fabwitch_2

Thanks for the link, I'm sure my child benifit was put down too.

hotblu

fabwitch wrote: »

Thanks for the link, I'm sure my child benifit was put down too.

Child benefit is not means tested, so it wouldn't have been affected.

HTH

Hotblu

DreamerV

fabwitch wrote: »

Thanks for the link, I'm sure my child benifit was put down too.

Do you mean you think your child benefit was reduced due to declaring IB? If so, ditto what hotblu said

or

Do you mean you think you child benefit was put down as income on your tax credit forms....as, if that's the case, then you need to call tax credits and mention you included it so it can be sorted for you.

[Deleted User]

The guidance book with the claim for and the annual renewal has always stated that if IB was recived since before April 1995 you should not declare it.

It is not official error if the customer has not read the guidance material provided. You have very little chance of having any backdated payments as the previous years' awards are finalised.