Tax Credits problem.......

scott666

We have been overpaid tax credit for the year 04/05. The problem started when we returned the information for our annual declaration on the last day it was due. For whatever reason that we've never found out the tax credit office claim they never received the information on time so they used the information they had (basically my income for the previous year) to finalise my award for that year. As my income had increased by approx £2.5k this meant that we were overpaid by a couple of thousand pounds.

I submitted the information they requested online on the due date (30 sept 04) and was given a reference number (which I have a record of) which I think should prove it was sent in on time also we recieved a letter 20 days later with updated information on our award which contained the correct figures I submitted on 30 sept 04 (we thought the information had been submitted correctly so had not been in touch with TC office to supply correct figures therefore they must have received my information online)

We have been told by the tax office that we will not be expected to pay back tax credits if the fault was caused by their mistake and we are claiming that as we submitted the required information on time we should not have to pay it back (not our mistake) they however still seem to think that the information was not returned on time thus we should pay it back.

We have appealed their decision to ask for repayment however they are still maintining their position that the information was not sent on time so it should be paid back. I accept that I was overpaid however not through my mistake, so do you think we should start to repay the money or continue to appeal?

emilyt

Hi there Scot666,
We have had the same problem Our overpayment is nearly £700. They used a previous years income to calculate what we were entiltled too even though i had sent all the info in for them.
They have now reduced the tax credits we get so we are paying back what was overpaid to us. As i see it yes it was their fault but i wasn't entitled to the amount that they said i was. Therefore i can only do the right thing and pay it back. I can understand that you might be annoyed that it was their fault but in the end i just can't imagine them saying that it is ok for you to keep the money. I do sometimes wish that i had never claimed for them in the first place as this now feels like i am in debt. We are on a low income and i usually manage to just about keep our heads above water.
Sorry i couldn't be more helpful but i know there are a lot of people in the same situation.
Hope all works out for you. Good luck

pink_phantom

When you had your award notice when the award was finalised it would have said your income details. Didn't you check it before letting them pay out for a whole year?

fatblokexl

The problem started when we returned the information for our annual declaration on the last day it was due. For whatever reason that we've never found out the tax credit office claim they never received the information on time so they used the information they had (basically my income for the previous year) to finalise my award for that year.

ahh the perils of being lazy and not completing in PLENTY of time.
just because you submitted details on line on the last day does not mean you are ok.
based on what you have said in the above quote, it appears that either:

as no TIMELY reply was received they finalised your award on the previous years income. this actually means that they paid you the right amount in the previous year. as your actual income for that year was never used to finalise the claim your increase in income is neither here nor there. the overpayment is more than likely the result of the claim "terminating" due to non reply and any money paid in that April-Sept being deemed non valid and then called over paid.


when you make a TC claim, the payments you get are based on the inc figure given on the form. At the end of the year we ask you what you actually earned in the year we paid you tax credits, we re-adjust the award based on your actual income and tell you what you should have had.

if you dont declare your income or do it late, then the computer ends the claim based on the details we DID have (wheter they are correct or not) and effectively says "ok, on the details we know about you were paid correctly", "but any money i paid you in the new tax year until the deadline date you were given to give me the actual income figure i need(provisional pmts), i am going to ask for this back".

or, the information was accepted even though it may be late (there is some leeway) and due to the income increase mentioned you were overpaid. this income increase is not HMRC fault as you are responsible for informing them as soon as possible that your income may exceed the limits imposed on your award notice.

Contains_Mild_Peril

If you have the letter with updated figures and implied acknowledgement of your annual declaration, I think you should certainly appeal, enclosing a copy of that letter.
I also filled in the form online, believing it to be more reliable than entruting it to Royal Mail, but guess what? The IR allegedly did not receive the information. Other forms I sent in by post also allegedly did not arrive. I've taken to sending forms by recorded delivery, which I can't really afford while I'm waiting to get my tax credits sorted out, but at least then they can't really deny receiving it.
If you have that letter, you should have a good case, though they may find against you anyway just because they're a bunch of flaming numpties who couldn't organise a !!!!!!-up in a brewery.
Good luck.

mishkanorman

We are in the process of appealing against an overpayment,
basically we received the award notice and it stated a joint income of x carried over from the previous years earnings. I called them and corrected it as I knew the current years earnings would be no where near that amount, the figure i gave was the amount my husband was employed at. When it came to the end of year review and sending in a p60 we actually earned £800 more. This was down to the odd day overtime throughout the year and xmas shifts that are given a week or so before xmas so we never know how much extra he would do. ( and xmas profit related bonus ) I presumed that it would fall within the £2,500 safe guard they allow. It didnt, according to the letter I received because i declared a figure and corrected them it meant we werent able to earn a penny more without telling them first and re-amending the award !

Its been around 14 weeks of complaining now, the first reply was utter non-sense and none of the figures they quoted actually matched with our records !! We are still waiting for the next reply, who knows what they will come out with next.

I would advise anyone who isnt happy to complain, reasonably of course just cos we'd like more money doesnt mean we can get it. But if they have mucked up they should sort it out


mishka