tax credits legal proceedings

[Deleted User]

surreysaver wrote: »

But they don't both have access to the award. It can only be paid to the parent who receives the child benefit.

This is not true, it can be paid to either person on the claim.

The overpayment is jointly and severally liable as the payments are made to the household - not to one person (obviously it is for a single claim).

The income thresholds are higher for a joint household than they are for a single household meaning that even though it is paid to one applicant in the household it is paid on behalf of the whole household.

When a couple claim tax credits they sign the form confirming that they will both be responsible for notifying of any changes - which has obviously caused the overpayment.

It may seem unfair to claim money back from the person who has already paid half back but those are the rules.

If you dispute the overpament you may be sucesful in arguing that you should not be pursued for the other 50% as a) You didnt receive all of the money paid and b) you have paid back half of the overpayment.

I wouldnt be too hopeful though as TCO are getting tough on overpayment recovery.

System

It really doesn't matter who received the payments because the couple when making the claim would have decided between them who the payments should be made to.

By ticking the relevant boxes, giving the relevant bank account details and signing the claim form you both agreed that tax credits payments should go to a specific partner. This was the decision you made and agreed to as a couple.

I do agree though that having repaid 50% it's upsetting to receive a demand for the rest. TCO though are charged with recovering overpaid taxpayers money and if your ex isn't working or is on low income and has the responsibility for the kids she will probably claim she can't repay anything, that's assuming she responds to the threat of legal proceedings. That unfortunately leaves you.