Tax Credits Overpayment query

nik_k

Hi all

I need some advice re an alleged overpayment of Tax Credits.

HMRC have just been in touch with my ex-wife to say that we owe Tax Credits from 2007 to the tune of £2900!!! This is the first either of us have heard about it. Apparently it is a result of a renewal form not being returned in 2007.

Since 2007 we claimed (and were awarded) Tax Credits in 2007/08, 2008/09 and 2009/10. In none of these awards was there any adjustment made in respect of the alleged overpayment.

We split just over a year ago, in March 2010. In 2010/11 she claimed Tax Credits, and so did I. Again, no adjustments were made.

I'm now over the threshold, so am no longer claiming. However, she is.

I have a separate overpayment from 2010/11 of £200, which I knew about, and have kept separate in another bank account. Bizarrely, HMRC won't accept repayment of this until this time next year...anyway, I'm going off on a tangent.

What are our options? I will definitely be challenging the fact that a renewal form wasn't returned. I also cannot understand how awards have been made for so many years after the event, without any reference to necessary adjustments for the alleged overpayment.

Understandably, we are freaking out just a little bit

System

Firstly I'm assuming from 2007 onwards you and your wife had to make a new application so tell me if I'm wrong.:o

If you had a claim which commenced before 2007 and in 2007 you failed to return the annual renewal form then the provisional payments received from April 2007 to the date they stooped paying you would be classed as an overpayment.

The new claim from 2007 onwards would be entirely separate from the previous terminated claim and so TCO could not claw back the overpayment from that. Neither could they claw the overpayment back from either of your single claims made after you split up.

You can dispute the overpayment if you think it is wrong and you did return the renewal document but if they didn't receive it that is difficult to prove. One thing though, when a claim is terminated due to failure to do the annual declaration both claimants usually receive notification of the termination and an award notice/statement of account showing the amount overpaid.

You should clarify if you did actually make a new claim in 2007 and if so what the start date was in that year. I would expect that if they terminated an old claim that would have happened around August and you and your wife would have had to make a new claim in September or October.

If you don't want to dispute it straight away and you haven't kept any paperwork from back then, then you can make a "Subject Access Request" and ask them to send copies of all documents sent out and a CD of any calls made in relation to any claims you had.

Other than that you and your ex can come to an arrangement with TCO to pay back 1/2 each over a period of time.
HTH

nik_k

Thanks for the reply Pam

What you say makes sense. However, there was no new claim made after the date of this alleged overpayment, the previous claim ran through right unti we split in 2010. It was at this point that the claim was stopped, and 2 separate claims made.

This is one of the things I simply don't understand...all we did in 2007, 2008 and 2009 was renew the pre-existing claim!

nik_k

Anyone? :huh:

captainusa

Please see the following website.... taxcc.org Read everything on that website. Hope I don't get in trouble for posting that. Anyway, disputing an overpayment can be a long and hard process. I've just won my case over an overpayment of £5k. However, it's taken a year and a half and was only settled when I got to step 6 on the above website including getting my MP involved.