4-year old tax credit overpayment

simonr2d2

Hi all

I have today received a letter from HMRC stating that I was overpaid tax credits to the amount of £957.24

On calling the helpline, it turns out that this overpayment stretches back to 2004 and extends to 2006. The explanation for this is that I earned more than expected during this period.

I am in no position to be able to pay back this sum. Is there anything I can do? It seems so unfair that they can claim this back after all this time. I lost my job last year, and am struggling to make ends meet.

Any help offered will be very gratefully received!

Simon

GlasweJen

First you write and ask them for a breakdown of how much you owe them. If you declared less than what you really earned then it's your responsibility to pay it back - it's hardly fair to expect them to just write it off.

You can ask them to let you repay them over a period of time rather than all in one go.

Lovelamour

Why have they only just discovered that you owe them money?

simonr2d2

The issue is that I did not expect to earn the levels I did, and when I called them to let them know I had an increase in salary I was told to wait until the end of the tax year and it would sort itself out based on the level of tax I had paid.

The other issue is the timing. It was such a long time ago, and I have since separated from my wife. I therefore have very few (if any) records left to support any case I might want to make in my defense.

I don't understand why it has taken them so long to get in touch, and their timing could not be worse. I have lost my job and I haven't been in a worse financial state for a long time.

Si

simonr2d2

Lovelamour - thats what I don't understand....

McKneff

There is no way they will write it off.
Ask them if you can pay it back in installments.

simonr2d2

I'm not expecting them to write it off, it just feels unfair that it's taken so long to come up with this. How can I be expected to budget for a debt I couldn't have known existed for four or more years??

Si

Lovelamour

Surely each years claim is a new one and they say the last years one is sorted, whether it be an underpayment, overpayment, etc, etc. I cannot see how they can suddenly decide you were overpaid a few years before!

GlasweJen

If the original claim was joint then they may have been chasing the OPs ex for this payment for the last few years.

Lovelamour

GlasweJen wrote: »

If the original claim was joint then they may have been chasing the OPs ex for this payment for the last few years.

Ah I see. Thats what I thought. I didnt think they would suddenly out of the blue announce an old overpayment.

angel223_2

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