Gotta pay back all my tax credits!

joffy666

I was claiming long term incapacity benefits, but in May 2010, I managed to get into work, 19 hours a week.
The Job Centre advised me to make a claim for tax credits as although I'm 41 with no dependants, as I had been claiming IB I could be entitled. So I came off benefits and started work mid-May, and my tax credits went through eventually and I continued to get them all year.
I received a renewal form recently and the personal circumstances listed the incap benefits so I called HMRC to report it as change of circumstances as it been a year since I last received the benefit.

Last week I get a letter saying I no longer meet the requirements for working tax credits and I now owe £693 in overpayments.
Today, another letter saying I now owe £3100 back!

So I call the helpline and was told I was never entitled to tax credits as I had stopped claiming the incap benefit when I started work.

So if that's the case why did they accept my application? I made it clear what my income was on the application. And one of the questions was; "Do you get or have you recently been getting a disability or sickness related benefit?" I had so answered YES.

They are sending me an appeal form, but what are my chances? I've not got £3000 to pay back :eek:

bunny999

They will allow you time to repay it.

joffy666

bunny999 wrote: »

They will allow you time to repay it.

Will they allow 20 years?!

bunny999

doubt it, it's usually a year

Dawning

There's a section about overpayments here :

http://www.moneysavingexpert.com/family/tax-credit-child-working-overpaymen?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar#repay

Are you classed as disabled? If you are, the lower limit for working hours is something like 16 hours a week. However if you're not classed as disabled, are over 25, and you have no dependents, you need to work 30 hours or more, a week to claim TC's.

joffy666

Dawning wrote: »

There's a section about overpayments here :

http://www.moneysavingexpert.com/family/tax-credit-child-working-overpaymen?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar#repay

Are you classed as disabled? If you are, the lower limit for working hours is something like 16 hours a week. However if you're not classed as disabled, are over 25, and you have no dependents, you need to work 30 hours or more, a week to claim TC's.

Well I was classed as having a disabilty when I claimed and continued to receive medical treatment for the condition until Autumn 2010, but my Incapacity Benefit stopped when I started work, May2010.

Dawning

joffy666 wrote: »

Well I was classed as having a disabilty when I claimed and continued to receive medical treatment for the condition until Autumn 2010, but my Incapacity Benefit stopped when I started work, May2010.

Right, I think this is where the mix up has happened then. The way I read Martins article, if it's their fault they can't make you pay it back (I may be wrong, I linked it for you to read to see what you think). There's a number on there for you to call to start the ball rolling to get this sorted.
My understanding is that you have to be actually registered disabled to get WTC if you work less than 30 hours per week, but i may be wrong. Anyway, if you filled out the forms correctly it does sound like it is their error.
Best of luck with this!

Icequeen99

There are 3 conditions to qualify for the disability element (and therefore qualify for WTC by working at least 16 hours):

1. work at least 16 hrs each week

2. Be at a disadvantage in getting a job

3. Be in receipt of, or having recently received, a qualifying benefit.

The HMRC decision in your case may be right or wrong.

Firstly, have a look at the TC956. http://www.hmrc.gov.uk/taxcredits/tc956.pdf

Look at condition 2 which is about whether you have a disadvantage in getting a job. Do you satisfy any of those requirements currently? If not, when did you stop meeting any one of them?

Condition 3 is the qualifying benefit. You will have met condition 3 when you first started working because you had Incapacity Benefit on one day in the last 183 days.

You will continue to meet condition 3 because you have had the disability element of Working Tax Credit in the last 56 days.

You need condition 1+2+3 to qualify, not just condition 3.

So basically you need to establish if HMRC have taken away the disability element because they think you don't meet condition 2 or 3.
If it is condition 3, then they are wrong and you should appeal. Your ongoing entitlement is established, not by incapacity benefit, but receipt of the disability element of tax credits itself in the last 56 days.

If they are saying you don't meet condition 2, then you need to have a look at the list and decide whether you think you meet any of the criteria. If you do, appeal.

You are not the first person to have this problem, especially with the understanding about Incapacity Benefit and condition 3.

If they have made a wrong decision, you need to appeal. This is different to disputing an overpayment which is what people are talking about above, you would only do that if you were never entitled to tax credits but think you shouldn't pay it back because HMRC made a mistake. The difference is explained in this guide: http://www.litrg.org.uk/Resources/LITRG/Documents/2011/03/Dealing_with_Tax_Credit_overpaments.pdf

Try getting some advice from citizens advice or https://www.litrg.org.uk


IQ

joffy666

Thanks for the info. For condition 2, I think I met the requirements and my therapy treatment stopped about Sept 2010, but still take prescribed meds.

joffy666

A weird thing is a few days ago I got a renewed NHS Exemption Certificate, saying the HMRC have informed us you qualify for free prescriptions...
If my tax credits have been stopped, how come I'm still able to have the NHS Cert?

computersaysnoagain

Even a working person not claiming benefits depending on disability is able to be prescription cost exempt. As in an illness that is medication dependant such as epilepsy for anti epileptic drugs and such like....