Working Tax Credits - False overpayment

RyDG

Hello all,

I really hope you can help me.

I've been receiving working tax credits since July 2010. I've been fully eligible; over 25 and working over 30 hours per week ( I remember writing 50, as that was accurate).

I've now been told (In Sept 2011) I must pay everything back because I wasn't eligible because I only worked 29 hours a week.....um.

I phoned up, and was told I just need to provide a detailed description of my working habits to prove I worked the correct amounts. I sent a very detailed complaints letter to HMRC and today received my reply.

They say "We found overpayments arose when we established that you had reduced the number of hours you worked from 50 to 29" -- The problem is, that never happened. I never ever gave them this information and to this day it remains incorrect. It seems odd they have been reduced to 1 hour below the eligibility level too.

The tone of the letter just seemed to imply that no, I do work 29 hours and must repay everything. Despite the overpayments being more than I actually own.

I'm going to appeal, but I'm slightly concerned that it says "You cannot appeal a decision asking you to repay" - This is ridiculous as the error seems to be at their end and I simply cannot have a human conversation with anyone. I'm just told that they have decided they are my working hours. No evidence, no reason.

If anyone has any light they can shed on this I'd be so grateful,

Thank you,

Ry

lorelai34

It is not an appeal you need, you need to fill in an overpayment dispute form. You can get the form from the website or the helpline can send you one out.

Caz3121

Are you employed or self employed? There seems to be clamping down on self employed people who are claiming to work a lot of hours but don't have the income that agrees with that, hence maximizing benefits (I think Universal Credits that are coming in are going to try to address this by assuming you at least earn miinimum wage for the hours worked) If you are employed they will be able to check with your employer so there should be no issue

Icequeen99

lorelai34 wrote: »

It is not an appeal you need, you need to fill in an overpayment dispute form. You can get the form from the website or the helpline can send you one out.

This is incorrect.

You can appeal against a decision to end your entitlement. You need to appeal against the final decision for 10-11 (if they have amended that one as well) and any decision for 11-12 as well.

Your complaint sounds like it was treated as a dispute. A dispute is where you accept that you have been overpaid (so the entitlement decision is right) but you don't think you should have to pay it back.

In your case, you don't agree with the underlying entitlement decision so the correct process is to appeal. Really, TCO should have realised this in your complaint and passed it to the appeals team.

I suggest you find those award notices and send an appeal letter against each year that has been changed. Normally you have 30 days from the date of the award notice, but you can send in a late appeal. Just explain that you did send a complaint that should have been treated as an appeal because it was against entitlement.

If you are self-employed you might want some specialist help from organisations such as https://www.litrg.org.uk or https://www.taxaid.org.uk or Citizens Advice.

IQ

RyDG

Many thanks for all the responses.
Yes, I am self-employed and indeed one of the phone operators told me the very same thing, that they are clamping down on the self-employed. It just seems to me they actually amended my details themselves which is crazy.

I shall be seeking advice form Citizens advice, and thank you, I shall tell them my original complaint was an appeal.

I hadn't heard of Universal Credits, I'll take a look.

Many thanks,

Ry

Oldernotwiser

What sort of income do you have for 50 hours' work?

bestpud

Oldernotwiser wrote: »

What sort of income do you have for 50 hours' work?

That's what I'm thinking!

Surely that would mean they earn below the NMW?

My guess is they are another self-employed person using tax credits to subsidise their business.

Weary_soul

Well for the self employed NMW doesn't apply I'm afraid.

bestpud

Weary_soul wrote: »

Well for the self employed NMW doesn't apply I'm afraid.

They should when the person is claiming benefits!

I think that is one of the loop holes set to be closed. About time too!

Weary_soul

Not imo, because under setting up in self employment doesn't work that way, and the Inland revenue know that. They are supposed to take that into account judging by their own guidelines, but recently they've decided to play fast and loose with their own regulations and so a lot of self employed people are being jumped on unfairly too imo.

tamiami

I'm self employed on commission only. Some weeks I work 40 hours and earn practically nothing, other weeks I can earn £200. I think what my actual earnings are for the year should be used, if they used the NMW it would give a false higher figure and I would lose my tax credits - where's the fairness in that?