Tax credit muddle

ceewash

I have received no tax credits for the last 5 years as I am not entitled to any. Last year I was told £47 was due to them. This year £160 was due " £220 of which is now due".

This is not make any sense to me and I have made a point of not responding to any of their communications. Last time I tried to ask for an explanation of the amounts noone could give me an explanation.

Should I continue to ignore them?

How can the amount increse? Do they add interest?

I regret the day I ever filled in their form. It seems they paid me a small amount about£700 a few years ago and have spent the next 7 years trying to get it back from me.

AnxiousMum

Do you have an overpayment from when you first received it, and this is what they are still trying to collect? If so, then no, do not ignore it. You can however make arrangements to pay it back over time by direct debit - but you'll have to call them to arrange that. If there is an overpayment, it probably stems from the end of the financial year that you did claim. As they give you some time to renew your claim, they will continue paying you based on your existing claim until the end of July or August - which means you would've been overpaid by four or five months before they put a stop to it, as you hadn't renewed. This is likely the sums they are trying to claim back from you.

Have you asked for a breakdown of what they believe you owe them?

Are you eligible for tax credits now, and if so, I don't understand why you don't apply for them.

ceewash

I have not been eligible for tax credits since about2006. When I initially asked about my overpayment I could not get any explanation which made sense and the figures didn't add up. That is why I decided not to pay.

Why would I be told I owe £160 and " of this £220 is due now"?

What happens if I just don't pay?

System

ceewash wrote: »

I have not been eligible for tax credits since about2006. When I initially asked about my overpayment I could not get any explanation which made sense and the figures didn't add up. That is why I decided not to pay.

Why would I be told I owe £160 and " of this £220 is due now"?

What happens if I just don't pay?

They will pursue you in the courts eventually.

Why don't you write in asking for a written explanation of how any overpayments on your claim arose. Tax credits overpayments are quite complex to decipher and helpline staff do not have time on a normal phone call to work their way through all the different award versions to try to give a claimant an explanation.

To give you an idea of how complex they are, Disputed Overpayment staff usually have a target of about 3 or 4 disputes to deal with per day.