tax credit pay back?

Callisto

Randall_Flagg wrote:

The question is whether you have good cause for being late. Being self-employed and struggling to sort your accounts seems reasonable but it will depend on what guidance is being followed by TCO.

No, in this case, it would not be classed as 'good cause'. I work in a tax credits call centre and good cause is defined as bereavement of a close family member or yourself, partner, children or close family member being ill in hospital. There may be others, but these are the main two good cause reasons.

I doubt very much that your overpayment dispute will be successful. The dispute team are likely to say if there were certain things you did not understand, then you should have called to discuss them. Plus the tax credit office sends out an annual renewal pack, and a reminder for you to provide at least an estimate of your income by 31st August deadline. Also if you had called during the main renewals period, you would have been asked to complete your renewal over the telephone or to call back with your income details.

If the dispute fails and tco say you have to pay the money back, if it will cause you hardship they will spread the payments over a longer period (or in some cases suspend the overpayment if you are on a very low income).

Randall_Flagg

Callisto wrote:

No, in this case, it would not be classed as 'good cause'. I work in a tax credits call centre and good cause is defined as bereavement of a close family member or yourself, partner, children or close family member being ill in hospital. There may be others, but these are the main two good cause reasons.

I doubt very much that your overpayment dispute will be successful. The dispute team are likely to say if there were certain things you did not understand, then you should have called to discuss them. Plus the tax credit office sends out an annual renewal pack, and a reminder for you to provide at least an estimate of your income by 31st August deadline. Also if you had called during the main renewals period, you would have been asked to complete your renewal over the telephone or to call back with your income details.

If the dispute fails and tco say you have to pay the money back, if it will cause you hardship they will spread the payments over a longer period (or in some cases suspend the overpayment if you are on a very low income).

And therein lies the problem. Good cause is a concept that has been developed in case law over the last 60 years. Whatever HMRC may think about the topic, it certainly isn't limited to the items in Callisto's list and the tax credits process guidance implies as much. The question is whether the claimant can show an exceptional reason for failing to provide the information by the specified date. Surely it has to be the case that if the information is not available to the claimant then she cannot be expected to provide it.

I refer to my earlier post and suggest that if the claimant is not satisfied that HMRC's decision on good cause has been properly taken, she seeks advice from Welfare Rights. Decisions on good cause are discretionary, unappealable and therefore the option of judicial review is available.

If the OP is unhappy with the decision on good cause, she could research the subject in Neligan.

Good luck.

DazzerG

Randall_Flagg wrote:

The question is whether the claimant can show an exceptional reason for failing to provide the information by the specified date. Surely it has to be the case that if the information is not available to the claimant then she cannot be expected to provide it.

If the OP is unhappy with the decision on good cause, she could research the subject in Neligan.

The key word here is "Exceptional". There would be no reason why an estimate couldnt have been given before the deadline, even if it was to say "no change in income".....3-5 months notice seems reasonable to me to provide this info.

Neligan. Do these relate to DWP only though?

naturegirl_2

I thank people for trying to help me out with this situation. I have a real problem with dealing with the business side of my business. I find it difficult to use the phone, leave letters, bank statements unopened and get very confused with figures. I know I'm avoiding the situation but get really panicy when I do eventually have to face this area of life. Its not something I suppose the authorities will recognise so I will have to pay back the overpayment even though I do earn a very low wage. But I am really trying to organise this side of being an adult so I dont get into these sort of situations in the future. Many thanks

Randall_Flagg

DazzerG wrote:

The key word here is "Exceptional". There would be no reason why an estimate couldnt have been given before the deadline, even if it was to say "no change in income".....3-5 months notice seems reasonable to me to provide this info.

Neligan. Do these relate to DWP only though?

So what about those cases where the claimant really has no idea? Having been S/E myself (a good few years ago, mind) not knowing precisely what the business has earned in the past year is not a wholly unusual situation. In fact, until the accounts are done, it may not be possible to give a reasonably accurate estimate either. That to me is a very good reason for not being able to provide an estimate or actuals or are you suggesting that claimants should simply make things up and throw themselves at the mercy of the compliance officer? Current HMRC guidance seems to allow a claim provided any income figure has been given. This could steer claimants into making things up and so is total nonsense. In law, a claimant is not compelled to provide information they don't have. Indeed, following the House of Lords decision in Kerr, I can't think of a single reason why HMRC shouldn't make more of an effort to find the information out for themselves.

As for Neligan, it is a synopsis of case law. That it has come from DWP/DSS/BA and whatever came before is irrelevant. I have yet to see what guidance TCO managers are following when considering whether there are exceptional reasons for the late return of the section 17 information but I'd wager that the guidance fails to take any account of the developments in the last 60 years... This could be a contentious issue and as I said earlier, is probably one for judicial review and that just needs a very brave or well financed claimant.

naturegirl_2

Last year I was late but phoned them up to tell them I had not done my accounts they said dont bother filling in the return form and just asked if I had earned around the same as last year. I told them I didn't know but they said if I said it was around the same they would adjust the figure once my tax return was in. So that is what I did and they took back what they said was over paid. I thought this time because I hadn't phoned the letter I recieved just said they would stop my benefit, so I thought I would miss out on payments (which is fair enough) but not owe anything.