Overpayment Of Tax Credits

Meganalice_2

Ive been overpaid tax credits over 2 different periods 2003/4 and 2006/7 they are now saying they have overpaid me by £6000 and as I have tried to dispute this they have just put a judgement order against me. They now want me to pay all this back as quickly as possible baring in mind I have no spare income as I am a single parent with 1 child... They are saying they never received my claim form in 2004 which I did send and they are saying they didn't receive my form for 2007. They didn't receive one for 2007 as I didn't send one I haven't claimed since 2005 as it is to much hassle and upset when things like this happen. CAB have advised that now the Judgement is registered I have no option but to pay back. Partly my fault for leaving it so long to sort but due to ill health, working full time and being a single parent with a home to run I have buried my head!!! But I work in Mortgages and we couldn't process something without receiving an application so why can they?? I didn't no they hadn't received the forms in the first instance... Has anyone got any ideas??? I'm at my wits end with it...

System

TCO only send out claim forms when you ask for one. However they do send out Annual Declaration forms at the end of each tax year to confirm what your income was. They then use that updated figure as the basis for your new year's award.

This means that the payments you receive from 6th April each year are "Provisional" payments and your entitlement to them is totally dependant on you returning your Annual Declaration form by the due date. That's how TCO ensure that your award is based on the correct income. If you fail to do that then they terminate your claim and ask you to repay all those provisional payments that you received between April and the date they terminated your award.

From what you have said it sounds as though TCO didn't receive the annual declaration you returned in summer 2004 - it had to be back by 30th September. Your claim would have been terminated at that date and you would have been aware of this because your payments would have stopped. They would also have sent you a reminder and a chance to get your award restored within 30 days.

To start the payments again you would have had to make a new claim and again return your annual declarations each year. It also sounds as if you didn't return the 2007 one and so incurred another overpayment.

This however is just me speculating and to find out the exact reasons for the overpayments you should either write to TCO asking for a full explanation or make an appointment at your local HMRC enquiry centre and the staff there can check to see if there are any grounds for dispute. If there are they can help you complete the TC846 - http://www.hmrc.gov.uk/forms/tc846.pdf
It's worth a try.

In the mean time make sure you at least have a current tax credit claim (if you are still entitled). That way you will continue to receive some money which will help you repay the judgement. And make sure you respond to any correspondance you receive from them. If you don't understand anything make use of your local HMRC enquiry centre. They can access your claim whilst you are sitting with them. You just need to make an appointment.

HTH

Stephb1986_2

try this

http://www.taxcreditoverpayment.pwp.blueyonder.co.uk

http://www.taxcc.org/dispute2.htm

you are not alone in this!!

Good luck

Steph xx

sandraroffey

first, you MUST get a written explanantion of these 'overpayments'. they did this to my daughter as well, and it turned out it was hardly anything that she owed. went down from almost 5k to just over 500£. so, dont talk to them on the phone, put everything in writing and send it recorded delivery. they have to sign for it then. ask fo a full breakdown of what and when. and before you start shouting at them, check your bank statement to make sure you HAVENT been receiving from them, when you thought you wasnt.

when you get the written breakdown, take it to the CAB and then they will help you.

dont wish to sound nasty, but there is a lot to be said for dealing with stuff when it needs dealing with!!!! otherwise it will end up costing you money!!!

hope it all turns out ok.

by the way, if it is an error and its their error, it doesnt have to be repaid.

if it DOES turn out to be the other way and you DO have to pay it back, they cant make you pay more than you can afford without causing hardship.

SuziQ

Did you dispute these amounts? I have an ongoing dispute from over 2 years ago that still isn't settled-the third,the first 2 they dropped as they agreed it was their fault and paid me some money back after the second as they had stopped the disputed amount from my award. My dispute from 2 years ago includes this amount they paid me back.

I have on 3 occasions requested a breakdown to explain what they are reclaiming (which by the way,is also as they said they did not recieve my annual declaration back. Yet I was on the phone constantly at the time and wasn't told it was outstanding,plus my award continued up until the end of October when they informed me they were reclaiming.)

I I have also asked for copies of the phone conversations I had.I have recieved neither of the above.
My MP got involved and gave up when they wrote to him saying 'we are not saying she didn't send the form back,we are saying we didn't recieve it' plus 'she would have had to ask our advisor whether we had recieved the form,he wouldn't have known it was outstanding unless she specifically asked.' They also denied that demands for repayment were sent prior to a decision being reached-even though my MP sent copies of all the ones we had recieved,threatening court action,with his enquiry/complaint.

TBH they are determined for 100% repayment now,weheras when my overpayment was advised they were saying they could write it off if there was no loss to the public purse (ie,you would have been entitled to the money on information subsequently provided,no fraud etc.)

I live in dread of the decision letter arriving as I too am living on benefit and have no idea how I would repay over £3,000. I have just recieved notification of an overpayment of £90 from last year which they are demanding be repaid straight away-it really does drive me crazy.

I really wish you luck-and I doubt knowing you are not alone is any real comfort,it certainly isn't to me!

sandraroffey

have you been to the CAB?? or get a solicitor who does legal aid. the tax credits people are notorious. notoriously always causing problems and getting it all wrong. i keep telling my daughter - but whether or not she does it is another thing - is dont talk to them on the phone, get everything in writing, keep copies of everything you send them, especially the forms you fill in, and send everything so they have to sign for it, ESPECIALLY the forms you have to fill in. then they cant say they havent had it. dont know what to suggest here, just that you need to get yourself some help because this cant be dealt with on your own. CAB have always been my saving grace and they ususally have a person who specialises in one thing ie. tax credit overpayments. if you havent done it already, give them a visit. and do let us all know how you get on. vey best wishes and good luckxxxxx

Meganalice_2

Thanks for this. I visited CAb yesterday and they said that I have to pay it back as the Judgment has been enforced TC are now seeking an attachment of earnings. I have to call them again today with a list of my earnings and my outgoings. It just seems an impossible system thanks for the above. I will post again after todays events. x

markelock

surely now you should also claim everything you are entitled to? i.e.based on your statement of earnings, if you are due tax credits for this year, and any previous year you should claim.

this will offset the amount they are claiming back.

SuziQ

markelock wrote: »

surely now you should also claim everything you are entitled to? i.e.based on your statement of earnings, if you are due tax credits for this year, and any previous year you should claim.

this will offset the amount they are claiming back.

Problem is,they will only backdate 3 months. After my dispute started 2 years ago my award was stopped-I was told on the phone this was so the overpayment was recovered. As this is what happened on the previous two occasions I didn't query it. It transpired that my claim for that year had been cancelled,so they weren't reclaiming anything. By the time I found this out the following may they would only backdate 3 months and I lost all the intervening money. This was despite the fact a dispute was ongoing-I was still given wrong info over the phone! That's one of the reasons I wanted to hear the telephone calls.

What a mess. If only they would write off these claims that are just due to the annual declaration form being lost and start again! I was also told this years hadn't been recieved-even though I had sent it special delivery and the RM gave me proof it was recieved and signed for. What more can you do? I do feel sorry for the people who work in CTC though,as they must get terrible flack over it all and are only doing their job at the end of the day.