Parents-Does The Taxman Owe You £1,500? (merged)

AngelaB_2

Hi how do i decide if its better to claim it in one name or two. mine - my husbands or both?

chriiiiiiiis

The highest earner makes the claim.

It's not like the 'new' tax credits.

onredbull

After scanning through all paperwork very very quickly, found letter from IR with words: "£262" and "Underpaid" on, so quickly phoned them up.

Just got off the phone with a letter in my hand asking them about £262 that I had been underpaid.
The man explained things to me and it seem that I owe them £262 and it may be best not to fill in and send forms as they may try and claim this money back from me.

Reading the letter prperly, I think it reads that I owe them money, bit confused really.

Im sure that they would have claimed this money back surely butafter speaking to 2 people, i think maybe i should leave it alone.

AirCooledHeaven

onredbull wrote: »

After scanning through all paperwork very very quickly, found letter from IR with words: "£262" and "Underpaid" on, so quickly phoned them up.

Just got off the phone with a letter in my hand asking them about £262 that I had been underpaid.
The man explained things to me and it seem that I owe them £262 and it may be best not to fill in and send forms as they may try and claim this money back from me.

Reading the letter prperly, I think it reads that I owe them money, bit confused really.

Im sure that they would have claimed this money back surely butafter speaking to 2 people, i think maybe i should leave it alone.

But if you are genuinely entitled to the tax credit they will owe you more than you owe them, so you'll still have a net benefit. Sounds like a fob off to me, apparently they're being swamped with calls about this at a time when they are normally dealing with people's tax return issues...

onredbull

AirCooledHeaven wrote: »

But if you are genuinely entitled to the tax credit they will owe you more than you owe them, so you'll still have a net benefit. Sounds like a fob off to me, apparently they're being swamped with calls about this at a time when they are normally dealing with people's tax return issues...

Thanks for your reply AirCooledHeaven,
So do you think I should fill in the form and post it to them ?

What if they send a letter and ask for me to repay the money, as I am in a V. BAD financial position and the moment ?

(Sorry Im not expecting an answer - just wondering if something similar has happened to anyone else?)

Kimberley

I know a few single mothers who were on IS try to claim this :eek: I did tell them it's only for those who work

AirCooledHeaven

onredbull wrote: »

Thanks for your reply AirCooledHeaven,
So do you think I should fill in the form and post it to them ?

What if they send a letter and ask for me to repay the money, as I am in a V. BAD financial position and the moment ?

(Sorry Im not expecting an answer - just wondering if something similar has happened to anyone else?)

If you have underpaid tax then normally they would collect it back through your tax code if you are working. If you are not working, and if the amount is small, they may just 'archive' the debt and wait to collect it through PAYE when you start working again. If you put in the tax credit claim and it is refused then your situation has not changed, and I don't see why they wouldn't keep the debt 'archived'. If they do decide to recover it you can talk to their debt management unit who could agree monthly payments that fit your financial circumstances (plus interest unfortunately). I would double check your entitlement to the tax credit, and if you can tick all the boxes (had a child under 16, paid income tax during that year, haven't had it already) then you should be OK and get some cash back (even if it is minus the £262 you owe). Of course this is my opinion and not meant as advice, and ultimately you should do what you feel comfortable with. Good luck

Edinburghlass_2

Kimberley wrote: »

I know a few single mothers who were on IS try to claim this :eek: I did tell them it's only for those who work

If they were working in 2002/03 then it is applicable to them.

doraexplorer

whats the address to send the form too? i cant find it ! thanks for any help,

dora xxxxx

AirCooledHeaven

doraexplorer wrote: »

whats the address to send the form too? i cant find it ! thanks for any help,

dora xxxxx

You can send it to your local tax office, the address should be on your last coding notice.