Help massive tax credit overpayment

Sucker_for_sweeties

kelloggs36 wrote: »

I have been overpaid too, but I have kept the money in a separate account ready for them to ask. I have told them 3 times I have been overpaid (they haven't told me and deny that I have, but I definately have). One day they will realise their error and ask for the money back and I will be able to do so immediately. I do wonder though, is there ever a time limit - ie would I ever be able to spend it??!! It isn't mine and I know I have no rights to, but I can't keep it for ever without paying it back as they won't take it!

Can I point you all to the tax credit casualties website. (sorry can't do linky:o)

Run by peeps who have fought the shambles of overpayments.

It can and DOES work, but it takes effort.

First thing, always ALWAYS take notes when you call, I know it's a hassle but if they've made the mistake, proving it can be VERY worthwhile if the OP is written off.

Keep notes of all calls, you can send a SARN request for all your records including calls, so if they've mucked up and there's a call from you there proving that, then you can get access to it.

I was OPaid in 2004. System read employers P35 and inserted the decimal point in wrong place. 2.2K earnings instead of 22K. Result large OP (which I banked in a savings account, and almost left alone). Called and told them.....to cut a long story short they didn't take the relevant action and 4 years later, after collecting about £500 in the previous years, they wrote it off.:cool: (just as well because I'd whittled it down quite a lot by then).

If it's their error, and you have told them about it, and they haven't actioned it then it can be challenged - sometimes successfully.


Sorry for long post, but the system can cause so much misery, and it pee's me off a bit.

Oldernotwiser

Sucker_for_sweeties wrote: »

Can I point you all to the tax credit casualties website. (sorry can't do linky:o)

Run by peeps who have fought the shambles of overpayments.

It can and DOES work, but it takes effort.

First thing, always ALWAYS take notes when you call, I know it's a hassle but if they've made the mistake, proving it can be VERY worthwhile if the OP is written off.

Keep notes of all calls, you can send a SARN request for all your records including calls, so if they've mucked up and there's a call from you there proving that, then you can get access to it.

I was OPaid in 2004. System read employers P35 and inserted the decimal point in wrong place. 2.2K earnings instead of 22K. Result large OP (which I banked in a savings account, and almost left alone). Called and told them.....to cut a long story short they didn't take the relevant action and 4 years later, after collecting about £500 in the previous years, they wrote it off.:cool: (just as well because I'd whittled it down quite a lot by then).

If it's their error, and you have told them about it, and they haven't actioned it then it can be challenged - sometimes successfully.


Sorry for long post, but the system can cause so much misery, and it pee's me off a bit.

That's all very well when people don't know they've been overpaid and think that the money's legitimately theirs. However, it's a completely different situation when someone actually knows the money isn't due and still spends it.

You're surely not advocating that people should have the overpayments wiped off in these circumstances?

Sucker_for_sweeties

seven-day-weekend wrote: »

If you are spending money that you KNOW is not yours, than that is your responsibility, not tax credits (even though the original mistake in paying you too much is theirs.) You know it is not your money, you should not spend it.

Yes, I knew when it happened to me, but decided to stooze it until they sorted it out. Despite numerous calls querying it, me establishing how it had happened after they let slip about the P35 automatic reading error, much hassle, they still didn't request it back for almost a year.

I had started eating into it by then (it is VERY difficult not to - and my finances are reasonably OK, for some it must be a nightmare, imagine the OD eating it up as soon as it's paid in). So I opted to repay via my current award.

They reviewed the repayment demand (off their own backs) after another unrelated glitch in their system when I changed jobs a couple of years later. Lo and behold they wrote off the remainder, without me asking them too.

I can only assume from the research I have done that it was because they were in the wrong for not actioning correcting the error after my many calls advising them of said error.

jjackman

i am not saying that, but when they have told me its all right then change thier mind, i do not have anything left week in week out. Personally i think the whole system should be abolished and go back to change of tax code when you have familys.

All i can say you are lucky to be in a siatuation where you can put your tax credits away and not need it. i am not in a position like that i only can wish i was. i work 40 hours a week, so does my husband, and by the time we have paid child care, etc we barely have enough for food shopping. So some times is not choice its putting food on the table and gas an electric on the meter.

If people have fraudulanty taken money i can see your point but when i have been told that its right then they decide 2 years later there was an error its not on its very scarey.

I am not wanting it written off at all, i just felt that the original poster had come on for support and advice and all everyone has done is say they are right and she is wrong, when noone knows personal circumstances.

Oldernotwiser

jjackman wrote: »

All i can say you are lucky to be in a siatuation where you can put your tax credits away and not need it. i am not in a position like that i only can wish i was. i work 40 hours a week, so does my husband, and by the time we have paid child care, etc we barely have enough for food shopping.

But nobody's talking about your tax credits; obviously you need those to live on. However, in your first post you said,

"And for the record after they have told me i have been massivly over paid they have upped my payments to almost double and cant change it until its sorted, so how is that right they are just dangeling a carrot to owe more and more money. "

It was the extra money, that you knew was being overpaid, that is the amount in question.

Sucker_for_sweeties

Oldernotwiser wrote: »

That's all very well when people don't know they've been overpaid and think that the money's legitimately theirs. However, it's a completely different situation when someone actually knows the money isn't due and still spends it.

You're surely not advocating that people should have the overpayments wiped off in these circumstances?

No I'm not advocating it, but if you have advised them time and again, as I did that there has been an OP, and they don't action that then I'm afraid that even their own rules state it's wrong. It's not my doing, but THEY are responsible for the award calculations and payments

Our obligation is TO CHECK ALL PAPERWORK received thoroughly, report all changes within the required timescale, report all errors on said paperwork.

Their's is to correctly calculate it, action all reported changes and reported errors. If they don't do that and leave the poorest members of society with cash in their hands, despite them calling again and again to query it, then it's a bit much to realistically expect them not to touch it.

I'm pretty disciplined and even I had to whittle it down when two major financial catastrophes happened in close succession.:o

jjackman

no since i got a letter in december i have been getting it out and giving it to my mum to put away.

But if i wasnt doing it i would have definalty have spent it.

i dont get paid until thursday and i have 6 eggs, 4 pints of milk, 4 chicken breasts, some veg, some homemade soup, and a pack of sausages and 2 loafs of bread in my fridge.

Hopefully i can borrow some money from somewhere.

It would be very easy for me to spend the money, but me and hubby will just have egg on toast and soup til then and the kids get meat and veg. At least i topped the gas and electric and oyster cards up!

So you see its not easy at all.

Its terrible but we have been told by the "authorities" we would be better off splitting up, so no family morals.

The whole thing is a total joke.

i know familys "pretending" they have split their kids all have computers etc for xmas, mine have a small bag of bits as we simply cant afford anymore.

they are clothed fed and loved so thats all that matters but it is frigteneing when you have spent money you rightfully thought you were due for them to revolk the decision and ask for it back.

Sucker_for_sweeties

jjackman wrote: »

i am not saying that, but when they have told me its all right then change thier mind, i do not have anything left week in week out. Personally i think the whole system should be abolished and go back to change of tax code when you have familys.

All i can say you are lucky to be in a siatuation where you can put your tax credits away and not need it. i am not in a position like that i only can wish i was. i work 40 hours a week, so does my husband, and by the time we have paid child care, etc we barely have enough for food shopping. So some times is not choice its putting food on the table and gas an electric on the meter.

If people have fraudulanty taken money i can see your point but when i have been told that its right then they decide 2 years later there was an error its not on its very scarey.

I am not wanting it written off at all, i just felt that the original poster had come on for support and advice and all everyone has done is say they are right and she is wrong, when noone knows personal circumstances.

Think that's not very accurate, for a start I have pointed them in the direction of the first place to go to see if there is actually anything that can be done.

tax credit casualties website

For others who disgree with my attitude. All I'm saying is that we are the wee guy here, the system is hugely confusing at the best of times really (even their own staff can be very unaware of what's going on).

Yes we have a responsibility to check all paperwork and report all errors immediately, and other changes as required.
But the Taxman is responsible for calculating it, and frankly that seems to be a bit of a lottery at times.
I wish we had a better system where the horror of large OP's couldn't raise it's ugly head. They can be and often are devastating.

Sadly I'm not smart enough to work out what to do to fix it.:(

nikki2804

Sucker_for_sweeties wrote: »

I was OPaid in 2004. System read employers P35 and inserted the decimal point in wrong place. 2.2K earnings instead of 22K. Result large OP (which I banked in a savings account, and almost left alone). Called and told them.....to cut a long story short they didn't take the relevant action and 4 years later, after collecting about £500 in the previous years, they wrote it off.:cool: (just as well because I'd whittled it down quite a lot by then).

Erm a P35 is the total of income, tax and NI paid by an employer as a whole, why would this be taken as information for a tax credits claim? It is not the employers responsibilty to do this. If anything this would be a P14 which shows the exact same information as a P60. Plus its the applicants that inform the TCO of income. (unless they give DWP etc permission to do this)

I do agree with the others though, you knew that you were overpaid, you should have kept the money. In all fairness it is hard to do in this current climate but you could have done an eligibility calculation on the TC website or phone for one. They would have given you an idea of what you were due every 4 weeks, you could have used this and put the rest away in a high interest account.

You have admitted that you knew you were overpaid so it is likely that TCO will ask for the money back (you can dispute - COP26 I beleive) but there say so is final. You will then be able to set up a payment plan.

jjackman

i am not having a go at anyone,

I got a letter in december to say they have decided i was over paid in 2007-2008, i havent been told why or how as yet all i have been told is they have over paid me by £12,000.

I called and gave them all the information they asked for and as yet havent heard a single thing!

The very Tuesday after i got £170 paid in to my account, this has happened everyweek since, and i havent spent this, But it has caused such hardship its unreal. It caused poverty, i also have been in hospital since due illness brought on through stress. which isnt good, (but knowing i dont have a spare penny) i have discharged myslef to go to work!!

I thank you for directing me to the tax credit casulties website and it wasnt you comments i was refering to.

I thought this was a help and support board thats why i joint, but it definatly doesnt seem this way.

If anyone wants to know anything just ask, i am doing my best all i was doing was saying comments can really hurt people if you dont know what situation they are in, in the best will in the world we would all like to have spare money but for some its not the case at all.

I was not insulting or being "off" with anyone at all, and just wanted to clear that up