Tax credits - want a laugh?

jaja_3

I am posting this one for you to laugh at, as if we dont laugh the nervous breakdown would be real close:rolleyes:

The general gist of our saga, is the tax credit bods accused us of being over paid 2004/05 then sent a letter to say it was their fault and no monies would be collected, then 2005/06 we received nothing due to paying back what we owed (or didnt as they had already stated). Then the 2006/07 award came back the same, so I went into battle produced their letter several times and ended up with my MP fighting for me. I expected to hear back soon, and got the latest award and final figures through today - no surprise being they read the same. So, I bit the bullet and phoned up.

Me - I would like to know why you still insist we owe you, when your letter clearly stated the 04/05 payment was your error, and why I am STILL receiving no tax credit.

Bod - Were you aware there is infact TWO overpayments now, so we are recovering the latest one also.

Me - I am sorry I was unaware of that, which other overpayment is there?

Bod - The 2005/06 award was also overpaid, so we are claiming that back now.

Me - OK................. But we didnt receive ANY money for that period

Bod - What no reward given?

Me - No, Didley squat, nothing, not a bean, sweet ............... nothing..

Bod - Oh dear, would you like a dispute form?

Me - No, I would like my payments please I have already disputed as has my MP, incidently when am I going to receive the money back you have incorrectly reclaimed?

Bod - But you still owe for the following year

Me - Erm, no I received NOTHING for that year

Bod - would you like a dispute form

:mad:

Needless to say I telephoned my MP, the bod had also claimed to have written to him as well as me, neither of us have received any correspondence, my MP is not happy and has sent a fax again - now had no money from them for 15-18 months.

Is it me? or can someone actually tell me how they can claim an overpayment for a year we had no money? baring in mind the initial over payment was their fault and admitted in writing?

Luckily myself and Mr Jaja are so flumoxed by the whole thing we are finding it amusing. Thought I would share this for those of you out there still battling.

Jaja

looby75

the tax credits system is almost as big a joke as the csa system.

The tc are still trying to say I owe them over £4000 for last year as my kids disappeared off the face of the earth (according to their computers)

I have to admit your story takes the biscuit...I've never heard of anyone being overpaid while receiving not a penny before LOL :eek:

pink_phantom

Try going into your local inland revenue office. They sat down with me and helped me fill the forms then they took them off me.

jaja_3

Thank you, I just received a copy of the fax my MP has sent yesterday - so lets see what happens this time.

Thats a good point pinkphantom, the next time I am asked to complete anything I might just do that.

jaja

elaine373

pink_phantom wrote:

Try going into your local inland revenue office. They sat down with me and helped me fill the forms then they took them off me.

I agree with the above statement and think that this is the quickest and less frustrating way to sort things out with the inland revenue when they get things wrong.

guardian_2

And the CT wonder why people end up shouting at them, it so frustrating...their moto is We are right even if you prove we are wrong we are still right !!! makes me sooooo mad!!!!

fatblokexl

all awards are based on your previous year income or you estimated income for the year you are receiving your tax credits for.
i.e submit a claim for 04-05 based on 03-04 actual income, then if required by IR (following details on award notice re: potential income changes), estimate your income for 04-05 and they will base your award on that estimate (either way at the end of the year they will ask you what you DID earn in 04-05 and adjust the award accordingly.

as your award runs from april to april and you have to renew by end of sept, between april and sept they are paying you provisional payments (based on last known income figures supplied by you). if this is lower than your actual previous years income they will adjust your new tax years award based on your actual declared income. if by doing this they find you aren't entitled to alot of money they will reduce your award to AVOID o/pmts where possible. sometimes this goes against you and youe end up being o/paid.

example:

mr smith sends in a claim for 04-05 tax year based on 03-04 income of £18000. he is entitled to £2000 ctc provided his 04-05 income (p60) does not exceed £20500.

in april 05 mr smith receives his 04-05 p60 and it shows £25000. mr smith, as a matter of course is required to complete a "declaration" for tax credits by end of september 05 at the latest.

as the tax credits are moving into the new tax year mr smith is set up with a provisional award for 05-06 and again is set to receive £2000 based on the last known income dets (in this case 03-04 as mr smith has not completed his declaration yet).

this £2000 award is paid monthly from april 05-april 06 and is worth £166pm

in late august mr smith tells the IR of his earnings and is notified he has been o/paid in 04-05 by £1400 as on his actual earnings of £25000 he should only have been paid £600.

when his 04-05 award is updated on his higher income, the computer uses this figure as a guide to earnings for 05-06 and adjusts that award accordingly. again mr smith is only entitled to £600 in 05-06 but in the 5 mths between 6/4/05-31/8/05 mr smith was getting prov pmts based on the lower amount (that is all the IR knew at that point) and paid mr smith £166pm = £830. as mr smith is only entitled to £600 he has been o/paid already in this new tax year by £130.

he receives no more ctc until the start of the new tax year 06-07.

to recap: mr smith o/paid 04-05 @ £1400
mr smith o/paid 05-06 @£130
total o/paid @£1700.
normally ctc o/pmts will be clawed back by reducing future pmts, but if, as above, you aren't getting any due to this reason, they cannot claw it back but it gets added to any previous o/pmts.

this appears to be what happened in JAJA's case but with one difference.
IR have admitted to an error which caused the initial o/pmt but do not appear to have updated the computer with that outcome. so the comp is just seeing the facts of the income differences and has held back/recovered future pmts to claw this "o/pmt" back.

in this sort of case the helpline are not in a position to help.
there may well be a note on the screen to say "we f@*ked up" but the helpline cannot escalate this to any other dept to get it sorted.
the normal course of action is a cop26 dispute of overpayment form. from there HQ deal with it.

for future reference, having working in tax credits since it started, the helpline are doing a cracking job in the worst possible branch of IR work. the advisors are restricted by poor guidance, lack of referal routes and painfully slow communications/actions by the HQ. so please believe them when they say they cant do this, that or the other as its like trying to scratch your !!!!!! with no arms sometimes.

jazzyjustlaw

What about me I called for 12 months and told them I wasnt entitled to Tax Credits they paid me them and eventually asked for the money back. I disputed as I had sent lots of letters phoned twice a month and you can claim compensation. I did and I did not get any compensation but had the claw back reduced. You know why they didnt reduce it to zero? Well when I wasnt entitled to it I was still suppose to tell them that I had had a wage rise - yes even though I told them I WASNT ENTITLED TO IT!!

Am not sure I would bother claiming it if I had more children.

Oh and every person on the helpline tells you something different. Its needs sorting!!

jaja_3

Thanks Fatblokexl. though I still had to read that a few times to try understand, why does it have to be so darn complicated

I have now unearthed enough previous CT paperwork to amount to a rain forest, as I have a nasty feeling I am going to be asked for figures dating back.
Still dont understand though, the letter back in 2005 said I would NOT be required to pay back anything and yet received nothing?

Still awaiting that dispute form, suppose it will arrive at some point this week. Do feel it unfair though that when one has received no payment at all for well over a year it has to take so long, sure I remember if you are suffering hardship they have to do something? I did have one payment I think in June 05 for £1.35 to prevent hardship though. (said that on the form)

I do now understand why the helpline cannot help? but Friday was the first time I had rang it in over a year, everything went by letter to compaints the rest of the time, maybe I didnt have the right forms then?

Thanks for explanation though.

jaja

Contains_Mild_Peril

jaja wrote:

Do feel it unfair though that when one has received no payment at all for well over a year it has to take so long, sure I remember if you are suffering hardship they have to do something? I did have one payment I think in June 05 for £1.35 to prevent hardship though. (said that on the form)

:rotfl: :eek: Yeah, I'm sure that was a really big help in preventing hardship! :rotfl: