HMRC admitted overpayment was there fault.

muzo

Hi all, bit of advice needed please? Recieved a letter this morning from HMRC stating that. The overpayment of £3,188.23 arose because we did not meet all of our responsibilities as set out in our code of practice 26.
This overpayment i recieved was 2 years ago, and we have not recieved any tax credits in the past 2 years. So what i would like to know is can i get the last 2 years of tax credits payments that i WAS intitled to but did,nt recieve because of the overpayment repayments.

del76

So there was an overpayment, and technically they were in the wrong yet you still more money then you were entitled to. So because you didn't get anything for the past two years you now want that whole amount as a lump sum?
I can't see it being right that you get the benefit of an overpayment and of a lump sum for a benefit you believe you were entitled to, after all you have managed without the payment for 2 years, and have already had the payment you were entitled to just in a shorter amount of time, consider it an advance payment.
I think that it just means they will no longer look to have any remaining overpayment that you have recieved returned to them. After all if a business makes a mistake and overpays an employee they have 6 years to claim the money back no matter whose fault it was, so i would consider yourself lucky they have written an amount off for you.

Orville

Hmmm i would think differently, although this is just my thoughts and not in any way based on any rules etc.

If in their rules it says if THEY make the mistake then you are not liable to pay it back, i think you should be entitled to a back payment in tax credits.

suelees1

If you've not been paid TCs because they've been recovering overpayments and HMRC admits they failed to meet their responsiblities this should mean the original overpayment wasn't recoverable. If this is the case then I would expect you to be credited with the amount you've repaid.

Forget other peoples' moral indignation, some are far too quick to judge when they don't know the facts.

muzo

Thanks for the reply just as i thought, when i owed HMRC money they were quick enough to take it of me, but now they accepted that they are at fault the money that they took from me is not there money and rightfully my money. I will give them a week to update their records and i will be making a phone call.

suelees1

You should get an answer from them over the phone as to if and when they intend to repay but it'll probably take them a lot longer than a week to do it as you an imagine.

captainusa

I had a similar situation to you, but a much bigger overpayment. I received a back payment of the amount they had already recovered a couple of weeks after they had informed me that I had won. You can also chase them for compensation. I was able to get £50 as an apology and for the stress they put me through.