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INLAND REVENUE TAX CREDIT PROBLEM, :-( ...8k debt!
sammy1_3
Posts: 7 Forumite
Hello, i wonder if someone can advise me regarding a problem that i have. It is regarding child tax credits.
Basically my mother filled in a child tax credit form around 3 years ago. She has been getting tax credit for the last three years.
She contacted the office about a overpayment problem and mentioned her husband. The advisor then said "you have a husband and You have been claiming for the last 3 years as a single mum
My mother said that someone filled in the form for her 3 years ago and probably did not mention my fathers details and income etc.
Now the tax office are saying she has wrongly been claiming as a single person and she should have got less money as she has a partner.
They are now asking for all the money around 8k. She has explained to them that someone filled the form for her and that she genuinely did not know this was the case
Where does she stand regarding this worrying debtHuh
She is EXTREMELY worried as they have threatened legal action.
Please help with what she can do and i thank you in advance for your help
Cheers
sam
Basically my mother filled in a child tax credit form around 3 years ago. She has been getting tax credit for the last three years.
She contacted the office about a overpayment problem and mentioned her husband. The advisor then said "you have a husband and You have been claiming for the last 3 years as a single mum
My mother said that someone filled in the form for her 3 years ago and probably did not mention my fathers details and income etc.
Now the tax office are saying she has wrongly been claiming as a single person and she should have got less money as she has a partner.
They are now asking for all the money around 8k. She has explained to them that someone filled the form for her and that she genuinely did not know this was the case
Where does she stand regarding this worrying debtHuh
She is EXTREMELY worried as they have threatened legal action.
Please help with what she can do and i thank you in advance for your help
Cheers
sam
0
Comments
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Unfortunately even though someone else has filled in the form your mother has to sign the form to show that it was correct. By signing she takes responsibility for it and she should have checked to ensure that its correct. She is also responsible for reading the letters about the claim such as the new notifications, that would detail the circumstances on which they based the claim and informing Tax Credits if they are incorrect.
If the form was incorrect but Tax Credits have assessed the claim correctly on the information provided then your mother will be held responsible for the debt.
However is she certain that the forms were incorrect? Can she request a copy of the claim form she signed to confirm that her husbands details are not on the claim? Theres a possibility that she may be able to get the debt written off if its Tax Credits fault that the claim was wrong.
Also are you sure that she has only completed one form in three years? I'm not sure about tax credits but in benefits we would never allow a gap that long without getting a least a signature on a review form to confirm that the details were correct.
I'd suggest that she speaks to the CAB straight away, if she does have to pay it back they might be able to assist in an affordable plan.
Good luck, I hope it works out.
Lally0 -
you have to claim child tax credits every year,and they send you a letter with all the details on before you get your final award letter.
it is very unlikely unless you never read your mail that you would not have picked up on this mistake for starters the letters would have miss and not mrs and it would state in there the number of people.
under the new rules you have to show your earnings with p60 every year,so i dont think they will let get of this debt sorry if its not what you want to hear.0 -
That is a HUGE overpayment and must be paid back, honest mistake or not. The fact that the OP's orginal form may not have contained all the relevant details is not likely to be viewed as an honest mistake. I just hope that they allow her to pay back the money and don't decide to take action for a fraudulent claim.
I would suggest speaking to the CAB immediately.0 -
Hi ive sent you a private message
klare xLIGHT BULB MOMENT, JUST IN THE NICK OF TIME!
DEBT JAN 2006 £83000:eek:
DEBT MAY 2007 £40000 :eek:0 -
Similar thing to what my brother did IE he never told them he remarried.
He forgot to send the yearly review back and got cut off. On re applying they spotted it and are demanding 7k (15 months payments).
In your case, ask them for copies of your claim and review forms for the last three years. If you have not signed the review declarations for the last two years then appeal on the grounds they have not followed their own procedures and ask that they write off the first two years over payment.
Apart from that I'm afraid you do owe the money so you need to start talking to them about some kind of repayment plan.
Regards
XXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
The best bet is a repayment plan, its a mistake on your mums part, whether unintentional or not, the best thing is for her to negotiate with them and see what they say. I agree with the CAB advice they are fantastic people.0
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I had the same problem, when they changed the system a few years ago, I was one of the people that didn't get paid (I was a signle parent at the time). They owed me over £1500, my childminder still needed payment.
Anyway they paid it to me, eventually. Then I got married last year, and had to re-apply as a joint award. I left work.
Because I used to get my pay-rise in December (we had a payrise on the day we joined each year), it messed up the system a bit.
And they said I owed them £1500, well I didn't, I actually only owed them £400, after some reviewing - and a lot of complaints - which is a huge difference.
I asked if they could take it off my new award, they said no as it had nothing to do with my husband, and I was sent an invoice for £400, which being now unemployed I couldn't pay. I phoned them as was told I could pay it over 12 months at £30 something per month. Well I had to agree.
My thoughts on this are - ok, I'm unemployed - what would they do if I really couldn't pay?
My uncle works for the DSS, and told me that when my aunt was on Income Support, they over paid her, but because she was unemployed they couldn't ask for it back. Food for thought I think - don't know if it works with the Dept for Work and Pensions, as well - different department.
Anyway - I'll still paying it back - they pay me £40 per month at the mo, for my daughter - then I give it straight back - seems a bit silly to me!!0
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