Tax credit overpayment

spacecommander

Hi all,

I'd be so grateful for a bit of advice...

I've received a letter stating that I owe over £4000 in overpayments, from tax year 04/05 and 06/07.

This is a huuuuuuge amount of money to me - same as it would be to anyone else, but I'd like to know how to go about disputing the amount.

I have recently found out from 2 different people on the tax credit helpline that if you're in receipt of statutory maternity benefit, they take that into account with your income. I have never been told this before, and have had 3 periods of maternity leave in that time.

I'm at a loss what to do, I cannot see how this amount is so huge as I have always declared everything, but apparently for those tax years I didn't. (which I know I did!!)

Please help me, its got to the stage where theyre threatening to take it to the county court, and I have no idea how to fight it.

SuziQ

You initially need to start a dispute,asking them for all the paperwork re calculations etc. Is this the first you have heard about this? I am still waiting (a year on) for this info from a demand for me to repay for year 2006/07 and also got my MP involved.

I'll see if I can find the link for you re all of this

spacecommander

Its not the first I've heard of it. I was paying it back at a rate of £25 per month, but due to hubby being put on short time, I just couldn't afford it. I was paying it because of what it is, I was a bit frightened as to what they would do if I didn't pay.

I've got the form to dispute it, but I don't know how to stop the collections department. Last time they wrote to me they sent someone round my house which was quite frightening.

Thanks for your help.

SuziQ

If you have already started paying it back haven't you accepted you owe the money,in which case I'm not sure you can now dispute it.

There is leniency for hardship cases and you need to let them know the difficulty you are having repaying. If they took you to court you are asked to fill out an income/outgoings form and they would probably lower your payments in any case,so it's in your best interests and theirs to let the know your husband is earning less (might that lead to higher tax credits anyway?) and if they are still awkward,CAB or find out the times of your MP's surgery and get him involved-they have a fast track to complaints with CTC.


Hope you can sort something out.

spacecommander

thanks for your reply again.

No one told me I could dispute the amount. I only found this out recently.

I started paying because I had someone come to the door from the overpayment office, and it frightened me to death!

I'll send the form off today.

thanks again