Tax Credit form sent in late now having to pay back all tax credits for previous year

IHopeSo

Hi All

Basically this happened 2 yrs ago, we had not been able to get our p45/p60, and had been unable to give our annual tax credit information back in time, the tax credit office then said we owed them all of our previous years tax credits, i had appealed at the time and then got refused and threatened with court action ( but with family issues and being heavily pregnant i didn't pursue the matter) i just agreed to a direct debit each month for the money apparently owed! since then our circumstances have changed, my partner and i have been made redundant and am wondering if there is any course of action i can take with regards to our situation, i really feel we should not have been made to pay back the tax credits we were genuinely entitled to, we had undergone allot of pressure for one reason or another at the time.

Any advice welcome

iamchrisli

Now, you changed your situation. Had you notify TaxCredit people about it? If not, it might make the arrears even bigger, it really down to the calculation.

If the outstanding arrears is very high, and you are under pressure, you should seek debt advice from Citizen Advice or National Debtline. They will make access your incomes/outgoings and make situation offer to Tax Credit.

You can also seek advice from Citizen Advice with all your paper work, they might help you to ask Tax Credit to reconsider their decision.

SuziQ

I am in the same position except I DID return the form but they say they didn't recieve it. I am still contesting it.However as you started repaying it I don't think you can now appeal the decision again. What you can do is report hardship,if you are both out of work and you are totally on benefits then I believe they will have to suspend repayment whilst you are totally supported on benefit-also don't forget to report your change in circumstances so that your tax`credits are adjusted,also have you claimed Council tax benefit,help with rent/or after 13 weeks help with mortgage interest.

IHopeSo

Thank you for the reply s, at the time i asked advice from CAB who couldn't help, as it is all completely computer generated they threatened court action and said the only way to stop this was to agree payments, ( after phoning & phoning & getting put threw to many different departments no one could help!) at the time as said we were under duress ( can't spell!) also phone lines always busy it was a nightmare !, they just said maybe i could get in contact with my MP! and to just look at it as a form of saving!! i have had so much else go on that i haven't gone back into it, Yes i have let tax credits no of our situation ASAP since this happened & yes am trying to look at every available avenue with regards to recouping monies owed at present time. Although having recently been made redundant we hadn't received P45/ P60 just today received so PHEW!!!!!
I just feel it is totally wrong to expect a tax credit claimant whom is under financial duress obviously by claiming tax credits in the first place to pay back all of the years tax credits given because of a form not handed in on time!! I do not think it was an overpayment as we were genuinely entitled to the money apart from handing the form in late!

whitevanwoman

To IHopeSo and SusieQ

You both need to go to www.TaxCC.org urgently.

This is the website for a peer support group called Tax Credit Casualties - a group of people like you and me who campaign for unfair overpayments to be written off. They also offer support and advice for people on how to dispute and how to appeal (2 separate processes, which HMRC isn't very good at giving info about)either a non-claimant fault overpayment or an unfair / incorrect decision.

You can download loads of information, templates for letters and there is loads of advice on what to do in situations like yours.

There is also a forum where you can post your problem and people who have had similar problems or benefits advisors can offer advice and help.

It's all free, run by 5 volunteers, with jobs, families and unfair Tax Credit overpayments of their own.

Have a look at their forum - in the new members section where you can post your problem, and in the success thread where you will see that it is possible to get an unfair overpayment written off. It's not an easy process, and it will probably take a long long time (I've been fighting mine since the summer of 2005) but once you start the dispute process, any repayments will be put on hold until a final decision is made (which could be years). That should help financially in the short term.

Good luck. Stay strong, and if you genuinely feel that the overpayment is not your fault, then fight it. After all, you wouldn't hand your cash over to me if I wrote you a letter demanding it. You would ask me to prove why I believe you should pay me and you would demand proof that you owe it. HMRC is no different - they are not above the law and they do make mistakes.

pj#_2

Hiya IHopeSo,

i'm Paula of the TAXCC website mentioned above. i am currently looking for cases like yours to challenge how unfair they are.

can you email me on [EMAIL="Paula@taxcc.org"]Paula@taxcc.org[/EMAIL] (go to the contact us page on the taxcc website if i'm not allowed to post my email address).

just drop me a line saying your the canclled award case from MSE and we'll go from there.

cheers
Paula

inneedofcash_2

Hi what a great web site I have signed up!. To all whose out there who to quote "you took the money etc etc pay it" should have a look it's not that simple. The goverment must look into the issue of overpayments and how they happen and how they should deal with at the time when people tell them not leave and leave it.

So to all those overpayment people that are worried about it appeal and let your voice be heard dont be a victim and dont listen to " your a thief you took the money " lot

sinstar

Not having a P45/P60 isn't an excuse for not doing your renewal, you can provide an estimate to extend the deadline.

IHopeSo

NO was not given the option of giving an estimate at the the time to extend the deadline, this was NOT an option!!!!just got sent into the complexed computerised ineficient system, and how on earth can they say it's right when they treat every over paid tax creditor differently, there are no rules its all a load of Beeeppppppsssss!! after all i gave them are correct info 2 weeks later, but their was no give we are having to pay back are previous tax credits award of over £2000.00, and as to say on there adverts if you don;t hand in your annual declaration on time there maybe a fine!!!!No we had to pay back ALL previous years TAX Credits WOW REALLY IS A WHOPPING FINE !!!! and it hits you in the !!!!!

LizzieS_2

IHopeSo wrote: »

we had not been able to get our p45/p60, and had been unable to give our annual tax credit information back in time

P45's should be handed out after the employer pays your final week/month wage.

P60's should be sent before 31 May each year, provided you were in employment with that employer at the end of the tax year.

If the fault rests with an employer, you may have recourse through the courts to reclaim your losses from the employer.

System

IHopeSo wrote: »

NO was not given the option of giving an estimate at the the time to extend the deadline, this was NOT an option!!!!just got sent into the complexed computerised ineficient system, and how on earth can they say it's right when they treat every over paid tax creditor differently, there are no rules its all a load of Beeeppppppsssss!! after all i gave them are correct info 2 weeks later, but their was no give we are having to pay back are previous tax credits award of over £2000.00, and as to say on there adverts if you don;t hand in your annual declaration on time there maybe a fine!!!!No we had to pay back ALL previous years TAX Credits WOW REALLY IS A WHOPPING FINE !!!! and it hits you in the !!!!!

You would not have been able to extend the deadline but the renewal form does have a box where you can indicate that the figures you have given are estimates rather than the actual figures from P45,s or P60,s. Ticking that box would have meant that the form was returned on time and you could have given the actual figure at a later date. That's what many people do. TCO should have told you that if you called them when you were having difficulty getting your figures.

There is nothing to stop you disputing the overpayment now and the TAXCC people would be the ones to help as they have template letters you can use. Or since your circumstances have changed you can contact TCO and renegotiate the payments.