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Child Benefit Overpayment HMRC Fault

I have received a letter stating that HMRC have been paying child benefit for my daughter at the higher rate of £20 instead of the correct rate of £13.40 after we moved in with my new wife and her 3 daughters the eldest of which is eligible for the higher rate.

The HMRC were informed of the change of circumstances and I have letters stating that my daughters rate will be £13.40 due to the above.

However it appears they continued paying the £20 rate for 30 weeks. Something we did not pick up on.

The letter states that:

'You have been overpaid because we paid you at the higher rate when we knew you were living in a family unit with XXXX XXXXXX and she is entitled to the higher rate for the eldest child'

They have crossed out the line stating;

The Commissioners for HM Revenue & Customs have the right, under common law, to ask you to pay the money back.

I presuming because the error is theirs and we do not have to repay.

Advice is greatly appreciated as I am a mature student with 4 kids and a very low income for the next 3 years.

Comments

  • cabbage
    cabbage Posts: 1,177 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi

    Got this from CAB website https://www.adviceguide.org.uk. You need to challenge the decision to recover the overpayment asap.

    Problems with Child Benefit
    If you are not happy with a Child Benefit decision, you can ask for it to be looked at again, or you can appeal. However, some decisions about Child Benefit cannot be appealed, for example, a decision about who should receive Child Benefit when two people have claimed it. If you are not happy with the decision on your benefit claim, you should challenge it within one month.
    If you are not happy with the service provided by the Child Benefit Office, for example, because of mistakes or delays, you can complain. You can do this whether or not you also want to challenge a decision.
    It's against the law for you to be treated unfairly because of your race, sex, sexuality, religion or disability when the Child Benefit Office deals with your claim for Child Benefit. Also, the Child Benefit Office is part of HM Revenue and Customs, which has a policy saying it won't discriminate against you because of other things. This includes things like if you are a carer. If you feel that you've been discriminated against, you can make a complaint about this.
    For more information about challenging a benefit decision and about complaining, see Problems with benefits and tax credits.

    HERE is the link on how to challenge

    http://www.adviceguide.org.uk/index/your_money/benefits/problems_with_benefits_and_tax_credits.htm

    Hope this helps
    The Cabbage
    Its Advice - Take it or Leave it:D
  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Seems to me it is their error so challange it. Write back disputing liability, pointing out that you informed of them of your change in circumstances and that it is down to their error. Still may take a few letters but so long as you did inform them they cant really dispute that.
  • From my research it appears that if the overpayment is down to their administrative error, which this is, then they have no right to repayment.
  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Zaytsev65 wrote: »
    From my research it appears that if the overpayment is down to their administrative error, which this is, then they have no right to repayment.

    True but you still must challange it and have them say that to you.

    You cant sit back and think it will go away because they wont challange themselves and until then will try and get the money from you perhaps even by deducting it from what they already give you.
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