Help With Tax Credits Overpayment

Just heard from my ex wife - can anyone please help?

Back in 2003/2004 my wife and I were claiming working tax credits. I had a job then, but got made redundant in 2007. Since then, we got divorced and I stayed at home to look after the kids full time. Apparently in 2004 they never received an update form, so classed everything for that year as overpayments. It clearly wasn't, and can probably be proved if necessary, but HMRC have just sent a letter out to her (mine's in the post, apparently). Is there anything I can do?

To give a bit more background, she was receiving the payments directly into her account (I never saw a penny!), and I'm currently looking after both kids after our divorce last year... I currently have my own sole claim for Child Tax Credits for both kids.

I really don't know what to do about this - HMRC obviously see both me and her as jointly liable... which we may be, even though I never actually saw a penny of that money...

Can anybody help?

Thanks

Comments

  • If you don't complete your annual declaration the tax credits office dont know what income figure should have been used to finalise the award.

    And because they dont know what figure to use they ask for all of the payments back.

    It was a joint claim so both you and your partner are jointly responsible for completing the declaration. And you are both also responsible for any overpayments. even if the money went to her account it makes no difference as this was the account you both jointly decided that the money would be paid to.

    And regardless of who the money was paid to, the point of the money is to support the people inthe household - primarily the children in your case.
  • compoff
    compoff Posts: 125 Forumite
    The only way an overpayment, which has occurred as a result of failure to return your annual declaration, will be overturned is if you have what is called 'good cause'. The only things that HMRC would consider to be good cause would be the death or serious illness of someone close to you at this time, or extreme situations like this. As said, regardless of who got the money at the time, you both claimed together and are therefore both liable.
  • Thanks for the replies... Appreciated... I know what to do now!
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