Tax Credit Fury!!

lolaj

Well I just thought I'd post a little update on this thread and I do hope that someone can advise me further.....

I received the paperwork from the DPO but I'm at a loss as to what it all means. They provide you with 'codes' most of which are not even on there so that you can try and understand what half of the screenshots mean!!!!

As for the screenshots.....no date on them that I can see, just the date of the computer screen when they were taken of to send to me.

Not received the recorded calls so now having to send a standard letter off to request these again and point out that they weren't included. Looks like I'm going to have to get out my bank statements now and rifle through them to see what's what as far as what I received during the short claim.

They also...and very kindly may I add (cue sarcasm), sent me a letter last week not long after I received the HUGE mound of incomprehensible paperwork, stating that unless I contacted them OR paid in 14days (the arrears) then the matter would be sent to Court. As you can imagine I was in a right state over it all and have done a little research which now advises that I should get the paperwork they sent me, split it up into years, get all other evidence that i have (dont have none, I threw it out but do have bank statements) and start from there really.

If anyone is currently in this position or has any solid advice as to where I should go from here I'd be very grateful to hear from you.

System

The research you did is giving you good advice.

Firstly send in a letter of complaint immediately by recorded delivery stating that you requested copies of your telephone calls and they haven't been sent to you. Highlight the fact that you are being pursued by Debt Management and you want the CD's asap as you intend appealing the original dispute decision.

Secondly get all the award notices together and split them according to the relevant tax years. The year usually appears above the main body of writing.

Thirdly pick out the years that the overpayments arose and set aside the others.

Next wait until the CD's arrive and then go through them noting the dates of your calls and what you told them in the calls.

Finally, if you need help constructing a new appeal, make an appointment at your local HMRC Enquiry Centre and the staff there will help you. Otherwise draft a new letter of appeal yourself.

The people at the www.taxcreditcasualties.co.uk website also have sample templates that you can use when disputing overpayments. They are other members of the public who have found themselves in a similar position as yourself.

HTH

lolaj

Thanks Pam,

That's the site I actually used and I have to say they are pretty methodical and systematic in their advice....a good thing no doubt!

Today I got out my bank statements and run some figures about (unfortunately I can't work out my hubby's figures yet as he has to get old bank statements together) as far as Child Tax Credit is concerned as hubby claimed the Working Tax Credit.

My earnings for 2004-2005 were only £5.5k and I'm estimating that my partners was £12k. What I'd like to question now is this £25k allowance that they apparently take into consideration before they reduce/disallow tax credits?

The claim last from May 2004 and I didn't send any further claim forms into them (because they just wouldn't get it right and naivety told me that if I didn't contact them the claim would simply stop) until I finally updated them some weeks ago as to my earnings. As at September 2006, they stopped payments altogether claiming I had been overpaid to the tune of £7k!!!!!! Now bear in mind that the total amount I had personally received in Child Tax Credit was in fact just over £4k, so quite how in 2006 they claimed I had been overpaid £7k is beyond me (but obviously I'm not taking into account at this point what my partner claimed however I know that it wasn't a lot!).

Any further help would be very much appreciated with regard to this £25k allowance.

TIA

krisskross

The £25K disregard is a fairly new thing , probably just the last couple of years. It isn't an allowance as such.

lolaj

So what is it then? Does it mean a single person or a couple can earn £25k BEFORE you are assessed or does it mean that as soon as you hit that £25k wage that you are no longer entitled to tax credits?

Aren't there other levels of allowance for Child Tax Credit? I'm sure I read somewhere that you can claim it up to the point of earning £60k per year?

LizzieS_2

lolaj wrote: »

My earnings for 2004-2005 were only £5.5k and I'm estimating that my partners was £12k. What I'd like to question now is this £25k allowance that they apparently take into consideration before they reduce/disallow tax credits?

The 25K disregard was announced in November 2005 budget and was effective for 2005/06 year onwards.

For 2004/05 your assessment would initially have been based on your 2003/04 income. At the end of the year if your 2004/05 income was more than £2500 greater than 2003/04 then your award would be reassessed on 2004/05 income less £2500.

As for 7K overpayment, it is possible in many ways. Without knowing your full circulstances it is impossible to calculate. To give you some idea, these are a couple of the biggest causes:
1) Entitlement to childcare help ceases (was 70% of costs at that time) if both partners are not working 16 hours.
2) Entitlement to working tax credit ceases if neither partner is working at least 16 hours.

TotallyBroke

The 25k disregard is basically this. Say this year you sent back your renewal pack and the figures from the P60's showed you had earned £30k. If you estimate you will earn the same this year, it means that they will pay you based on a figure of £30k but you can in fact earn as a family £55k and you will not have to pay anything back.

BUT if you estimate at £30k then ring and tell them no it's only going to be £20k then ring them and say no actually it's going to be £30k you will lose the £25k disregard.

When you say that you get the CTC and he gets the WTC do you mean they pay seperate amounts into seperate accounts? Why do you not get all the money paid into one account? I did when I had a joint claim, all TC got paid into my bank account.

krisskross

Working 60 hours a week between you even at minimum wage should you still have been receiving WTC? Was it a joint claim or were you claiming as singles?