Inland Revenue stresses - please help!

jacobsdaduk

I have received a letter from Inland Revenue telling me I owe them £1400 in overpaid Child Tax Credit. This is because I did not renew my tax credits, as I had not finalised my books (I was self employed last year).

I have just called them and they have told me they have to send me a new application form. Fine. However, they have told me that they will not subtract the £1400 from the new award as it is "too late" and I have to pay them the £1400 back seperatly from the new award.

Why?? Why can't they just subtract the outstanding "overpayment" (which is a joke in itself) from the new award. Why do they have to make these things so damn complicated!!!??

I am already struggling to pay nursury fees so that my partner can go to work a couple of days a week (which in itself is a joke as what she earns just covers the fees and we get no help as we earn £500 per annum too much) and now they are hassling me for money I just don't have. The stress becoming too much to handle!

Can anyone advise me how this works please. I just don't have this kind of money.

Thanks.

[Deleted User]

The rules state that you must return the declaration by 31st July - whether employed, unemployed, self employed or on benefits.

You could have provided an estimate. If you did you would then have an extension to the deadline - 31st January - to give the exact income details.

If you dont provide the details by 31st July as requested your claim is terminated from the last day of the previous tax year - TCO don't know what figure your award should be based on unless you tell them!

From the date your claim is terminated you then have an EXTRA 30 days to give them the details - if you called as soon as your payments stopped they would tell you this.

Outwith the 30 days your claim is finalised and you need to re-apply.

Unfortunately the overpayment will stand. You will need to arrange to pay it back by calling the overpayment helpline - 0845 302 1429.

You can arrange to pay it back within 12 months with no problems, if you need longer you will need to to complete an income & expenditure report in order for an amount to be calculated that you can afford to pay back.

compoff

Your claim can be restarted again if you have good cause. Just tell them someone in your family died and they will restart it again and you will have no overpayment.

johnllew

compoff wrote: »

Just tell them someone in your family died.

What if that isn't the case - are you suggesting they lie?

compoff

If you don't want to be owing that sort of money, then yes

System

compoff wrote: »

If you don't want to be owing that sort of money, then yes

TCO gives you from 6th April until 30th August (31st July + 30days) to complete the annual declaration. Thats 20 odd weeks to provide an estimate of self-employed profits.

A new claim still has to be made and the great computer system that the government purchased does not have the facility to recover overpayments incurred in a previous claim from the new claim. Also for the overpayment to be written off due to Good Cause (death in family) TCO would expect you to provide proof of the tragedy.