CTC Overpayment - advice needed please

searchingforlight

I'm having a long-running battle with HMRC about our 2009/10 tax credits awards. They are saying that we now have an overpayment of nearly £2000. We took advice from the local CAB and put in a dispute (TC846) explaining that we told them about the changes in my partner's salary (and we have evidence in the form of revised award notices) and that the OP is their fault as they didn't act on the information. The dispute form was sent in March and only yesterday (8 months later) have we received a response saying thank you for asking us to look at the overpayment for 2010/11 (we didn't, it was 2009/10) and that they don't believe we met all our responsibilites so owe the money. So now they're saying there's an overpayment for 2009/10 (to which they've not responded) and also 2010/11 (which we also disagree with as I guess this is the knock-on effect of the over-payment from 2009/10).

To be honest there were a whole load of changes that went on over this period as my husband got made redundant, signed on for JSA, then started a p/t business and got a p/t job - all of which we notified them (we have dates/times recorded and award notices issues) of. Somewhere along the line, someone there pressed the wrong button which reverted his salary back to a lesser amount so they re-calculated. I have to say that by this time it must have been about the 6th award notice that came through and I didn't really bother to look at it. Only when they then contacted us saying there is an overpayment did we go through all the award notices I filed and then noticed the error.

So, basically, we have the evidence that proves we met our responsibilities in terms of notifying them but they're saying that we didn't notice and report their error so we have to pay the money back.

CAB are chocca and I can't even get a basic appointment and I don't really know what to do next. I believe we can send in a second dispute (based on the fact that they effectively ignored what we told them in the first dispute, plus a complaint that it took them 8 months to respond), but do you think we need to get some legal advice? Would really appreciate you advice. Thanks for listening.

Cornish_piskie

Hi OP - sorry you're in this position, you certainly aren't alone as lots of people are having these letters drop onto their doormat.

However, your statement ' I have to say that by this time it must have been about the 6th award notice that came through and I didn't really bother to look at it. Only when they then contacted us saying there is an overpayment did we go through all the award notices I filed and then noticed the error.' is really the proof that you do owe the money. Whilst they made an admin error (which it seems happens rather too often:o), the onus is on you to check each and every award - this is as much your responsibility as notifying changes in the first place. You stated that there had been lots of changes through that time and, to be honest, if it were me, I'd have been extra diligent in checking the figures on the award notice be it the first or the twenty-first.

You will be able to come to an agreed payment plan on how they will retrieve this overpayment - if you are still entitled to some tax credits, they will probably reduce the amount paid out weekly or monthly.

Sorry, this isn't probably what you want to hear but I would be surprised if you could 'win' any dispute based on what you say above:( I could be very wrong though and someone with more knowledge might have more/better advice for you

searchingforlight

Thanks for reply so quickly, I appreciate that. I also posted a 'thanks' for your honesty in the reply as it's far better to hear the truth (or what could turn out to be the truth!) than just 'what I want to hear'!

You're right of course and in fact looking back through the award notices tonight there were actually 9 in total of which 4 were incorrect and I contacted them on each ocassion to tell them that they were incorrect, resulting in further replacements. I think I just gave up at that point which clearly was completely the wrong thing to do but I just stopped being able to compute them & understand what the hell they were saying!

Just to prove the point, I've had 2 award notices this last week relating to 2011/2012 both saying our circumstances have changed (they haven't!) and they've knocked nearly £10k off my husband's salary - why? Of course, I'll be on the 'phone tomorrow asking them why they've done this and I expect the usual 'oh yes, sorry about that' (If I'm lucky) or 'we'll get that changed then' (if I'm not) and of course be extra diligent now in checking they DO actually revert back to the correct information. Bottom line though, who on earth is sitting there pressing these buttons and making up changes like this causing these overpayments. There seems to be no acccountability their side whatsoever (taking 8 months to reply to the dispute surely is unacceptable) and not even acknowledging that they made the error in the first place (again I feel equally unacceptable). Sorry for the rant :mad:
We are still eligible for tax credits so their proposal is to take it out of what we are due (although I'm beginning to wonder if what we're due is right if they've calculated it on the basis of what they've sent through this week which is totallywrong) but to be honest we're struggling to find everyday living expenses and rely on that money to pay for things like shopping and utilities so not sure where that's going to leave us...

Thanks for listening

Cornish_piskie

A very nice reply OP, thankyou - refreshing on here at the moment :rotfl:

I do feel for you, I had an overpayment of £1100 due to their clerical error but luckily I spotted it quickly (I'm paranoid as my sister had an overpayment of £3k so I pore over every word and figure ) I do sympathise with you though on the endless award notices and it's very easy to skim read them and think all is well.

If you feel there might be a chance (or another poster here comes up with something that might help your cause) you could still put in the second dispute but - here I go with some more honesty - I do feel that if you've received an overpayment it's only fair that it goes back into the 'pot'.

Good luck with whatever you decide x