Tax credit overpayment

JennyJewell

Hi all,
I've had exactly the same problem and I'll tell you why!
About 5ish years ago we had a letter saying that we had been underpaid tax credits and attached was a nice cheque - being cautious we rang tax credit line to check that it was legally ours and it was confirmed that it was,(we still left it sitting in the bank for about 3 months before we dared to spend it)! About three months after this we had another letter saying that they had made a mistake and that we had to pay it back! This put us off ever claiming again and we didn't bother with the forms - now because we didn't bother filling in the forms we owe more money?!! Yeah - work that one out!!!
See I know what people from tax credit have tried to explain to us that if we don't fill in the forms they don't know if we could be earning more now - I think that's rubbish,both me and hubby work so surely they can check our tax codes,etc, but the way I see it is this :- a)We haven't bothered claiming for a few years now because of situation I explained earlier so how can we owe money that we never had in the first bloody place?!! b)I feel that we are getting punished for going out to work and not bothering to claim money from the government - we go out, work hard and earn our money ourselves and yet there are people out there on their lazy backsides claiming money from left,right and centre and everything is done for them to continue to live their lazy,bone idle lives that they do!!
I don't normally get angry on these forums but quite honestly I don't understand it and it really does make my blood boil - it just seems the harder you work the more you are punished and the lazier you are the more you are rewarded sometimes!
But I have to say I wouldn't change who I am cos I have my pride and I learn every day
Phew - that's off my chest! Sorry guys I am back to my normal cheery self now,lol!
Jenny

System

JennyJewell wrote: »

Hi all,
See I know what people from tax credit have tried to explain to us that if we don't fill in the forms they don't know if we could be earning more now - I think that's rubbish,both me and hubby work so surely they can check our tax codes,etc,

Whilst I understand everyones frustration with how the complicated Tax credits system works and how unfair it can be Tax credit claimants need to understand that just because someone works for the Tax Credit Office in HMRC that does not mean they know or can access every other part of the huge organisation that is HMRC. Tax credit staff generally don't know what tax codes are and how they work unless they previously worked in Taxes. They don't have access to the PAYE and SA systems that's why you have to tell them how much you earned or how much your profits were. Similarly they don't have access to the DWP systems.

The reason for limited access with all these government departments is apparently so that only those who need to can access your record. The powers that be have decided that Tax credit staff don't need to understand or have access to the PAYE or SA or DWP systems. Just like they don't expect staff at the Borders agency to understand how to complete employers end of year returns or operate VAT.

To the OP you would need to firstly ask the TCO for a full written explanation of how they say the overpayment arose. You can also make a "Subject Access request" under the DATA Protecion Act. TCO will send you a CD of all your telephone calls and copies of all documents. It might also be an idea for you to ask them to confirm what addresses they had for you and when they were amended. The reason for this is as Sinstar states they may have been writing to you at an old address. If this was the case and you have evidence of a telephone call where you advised of a change of address then you can add those details when you subsequently dispute the overpayment..

sinstar

This put us off ever claiming again and we didn't bother with the forms - now because we didn't bother filling in the forms we owe more money?!! Yeah - work that one out!!!

As soon as you initially claim tax credits, UNLESS YOUR ELIGIBILITY COMPLETELY ENDS (no qualifying children or employment) OR YOU WITHDRAW YOUR CLAIM, you still have a claim for tax credits. You don't make a new claim every year. You renew your existing claim. If you stop paying your mortgage, it doesn't cease to exist. If you stop paying your phone bill, your contract does not cease to exist.

All renewal forms and declarations say in black & white - if you do not complete the forms, payments paid to you in the provisional period will become an overpayment. This is why 'by not filling in the forms' (or reading them, by the sounds of things) you can owe money.

We haven't bothered claiming for a few years now because of situation I explained earlier so how can we owe money that we never had in the first bloody place?!!

You may not have been receiving payments for years but your claim hadn't evaporated into thin air (as explained earlier) and any money owed would be money you had received 'in the first bloody place' before you decided that ignoring your tax credits claim was a sensible course of action.

And as for the comments about 'lazy' people getting everything done for them - a tax credits applicant with no job has to read & fill in the same forms as everyone else, they don't get 'special help' or everything done for them.

As soon as you claim tax credits it is your own responsibility to properly read all letters & forms sent to you & do what is asked of you. If you don't do what is asked of you & that causes you problems & overpayments, it is not the fault of HMRC staff, it's not the fault of THE GOVERNMENT, or anyone on this forum.

I don't know why I even bother giving advice on here the majority of the time. A lot of problems could be solved simply by paying attention to what is asked of you.

BarryMarshall

A friend of my wifes got hit with the 'you were overpaid' scenario a few weeks ago.

They are asking her and only her for all the overpayments back and she split from her husband about 5 years ago.

She rang them and they just said 'tough'.

Now her ex is has a solicitor to say he has nothing to do with it at all and she is being threatened with all sorts.

System

BarryMarshall wrote: »

A friend of my wifes got hit with the 'you were overpaid' scenario a few weeks ago.

They are asking her and only her for all the overpayments back and she split from her husband about 5 years ago.

She rang them and they just said 'tough'.

Now her ex is has a solicitor to say he has nothing to do with it at all and she is being threatened with all sorts.

How does your wifes friend know TCO are not pursuing her ex?
The fact that he thinks he has to engage a solicitor would indicate to me that TCO ARE asking him to pay back some of the overpayment too and he's trying to wriggle out of it.

TCO always send out a demand to each claimant asking for the full amount to be paid back. It's up to the claimant to either dispute the overpayment because they think there has been some error by TCO or try to negotiate to pay back half the amount owed. Ultimately TCO don't care who pays the money back as long as they get back the overpayment for the taxpayer.

If the ex tries to say he had nothing to do with the claim all TCO have to do is compare his signature with any on any application forms or renewal forms.

When they as a couple applied for tax credits, giving bank account details etc and then signed the form TCO were within their rights to assume that the couple would have discussed applying in the first place and made a joint decision as to whose account the money would be paid into. If it was paid to the wife then the husband can't just say since he didn't get the money he shouldn't have to pay it back.

loulou111

sinstar wrote: »

As soon as you initially claim tax credits, UNLESS YOUR ELIGIBILITY COMPLETELY ENDS (no qualifying children or employment) OR YOU WITHDRAW YOUR CLAIM, you still have a claim for tax credits. You don't make a new claim every year. You renew your existing claim. If you stop paying your mortgage, it doesn't cease to exist. If you stop paying your phone bill, your contract does not cease to exist.

All renewal forms and declarations say in black & white - if you do not complete the forms, payments paid to you in the provisional period will become an overpayment. This is why 'by not filling in the forms' (or reading them, by the sounds of things) you can owe money.

You may not have been receiving payments for years but your claim hadn't evaporated into thin air (as explained earlier) and any money owed would be money you had received 'in the first bloody place' before you decided that ignoring your tax credits claim was a sensible course of action.

And as for the comments about 'lazy' people getting everything done for them - a tax credits applicant with no job has to read & fill in the same forms as everyone else, they don't get 'special help' or everything done for them.

As soon as you claim tax credits it is your own responsibility to properly read all letters & forms sent to you & do what is asked of you. If you don't do what is asked of you & that causes you problems & overpayments, it is not the fault of HMRC staff, it's not the fault of THE GOVERNMENT, or anyone on this forum.

I don't know why I even bother giving advice on here the majority of the time. A lot of problems could be solved simply by paying attention to what is asked of you.

Sinstar, you are truely blinded by this system - you must have been working at HMRC for some years - there is one difference between us 'the workers' and the lazy wasters that sit on their backsides all day, and that is they have more time to sit around reading all the small print of benefit forms - after all they make a career out of such things!
YOu are incapable of seeing my point at all - that is that all my adult life I have been on PAYE - that means that HMRC who send my P60 every bloody tax year already know what I have earned - was this not why this system was set up to be run by HMRC and not as previous by social security????
I am outraged that they should take so long to contact me over a 'debt' from years ago, and btw I was living at the same address until 2007 so they knew where I was. And I have been in the same employment since 2004!
I have now requested all the data they hold on me cos I obviously can't remember conversations from 2004 - but I tell you this, with each different person I speak with there I get a different story, cos now they are saying that I did declare my income for 03/04??
Still thing can only get better hey, since this government may even send this type of work over to india to be dealt with - if you can get out of this country I would do so now - and would the last person to leave please switch off the light

loulou111

to all others thank you for your comments and I wish you all the best of luck