Help - Tax Credit Demands for Repayment

miket1964

Just when I thought things were going OK.

Manage to get myself debt free in the last couple of months, first time in years and then this rears its ugly head.

A demand in the post this morning to pay back £4098.00 to the Tax Credit Agency.

This started back in 2008, the Tax Credit Agency stated that we had been overpaid by £6285.00.
I disputed this and for them to show how they had come to this figure and to show payments sent, this figure didn't match monies received. We called and wrote to them with no satisfactory outcome or explanation.
Since then every year we have received a Tax Credit of zero, letters stating that this was because of the monies owed and what we should have been awarded was to be deducted from the amount owed.
Obviously this has now been sent since a change of Government policy we are now not entitled to any tax credit.
I am self employed and we are just getting by, I don't have a spare 4K kicking around, so any advise greatly appreciated.
Regards
Mike

bigbloomers30

hi,
I am in the same position and owe £1,800. I have just sent a dispute letter. I found some good info on the low income tax reform group website - you'll have to search for it as I can't post links. This is what it says on there about repayment-

"If you want to pay over more than 12 months, you need to work out what

you can afford each month and ask HMRC if they will accept it. Phone the

number on your overpayment letter. If it will take you less than ten years

to pay it back, and the amount seems reasonable, they will usually just

accept it without asking for full details about your income and outgoings.

If you want to make payments that will take longer than ten years, HMRC

will ask you for details of all money you have coming in and what you need

to spend it on. They will then work out how much they will accept."

Hope this helps.

MissMoneypenny

miket1964 wrote: »

Just when I thought things were going OK.

Manage to get myself debt free in the last couple of months, first time in years and then this rears its ugly head.

A demand in the post this morning to pay back £4098.00 to the Tax Credit Agency.

This started back in 2008, the Tax Credit Agency stated that we had been overpaid by £6285.00.
I disputed this and for them to show how they had come to this figure and to show payments sent, this figure didn't match monies received. We called and wrote to them with no satisfactory outcome or explanation.
Since then every year we have received a Tax Credit of zero, letters stating that this was because of the monies owed and what we should have been awarded was to be deducted from the amount owed.
Obviously this has now been sent since a change of Government policy we are now not entitled to any tax credit.
I am self employed and we are just getting by, I don't have a spare 4K kicking around, so any advise greatly appreciated.
Regards
Mike

Contact them and ask for a repayment plan. Just don't do what some do (judging by recent threads on this board) and hope it will all go away.

NoBS_2

MissMoneypenny wrote: »

Contact them and ask for a repayment plan. Just don't do what some do (judging by recent threads on this board) and hope it will all go away.

0845 302 1429 that will get you through to the Recovery people who help you to make arrangements to repay.

And good advice above; dn't ignore it, best to get in touch with them.

quanto2009

I have the same issue for a repayment of £4000 today due to overpayment dating back 2009.To be honest speaking to them doesn't make anything clear or the paperwork but since 2010 we have had no payment I have been only worked 8mths for 2010 and 9 months 2011 and so far a month 2012 as self employed, but have signed on but not received any JSA as a I have a working partner and not enough NI credits.
We were told rightly or wrongly to still put a claim in for Tax credits and any amount due would be taken off the outstanding amount is correct as I have tried ringing but costing me a fortune to ring off a mobile.
Do we contact the TC people or payment helpline as they want this money before 29th may but we don't have it.?
Worried

Mumto3cheekymonkeys

I also owe little over £9000 due to childcare payments however I am going to argue this all the way to court if I have to.

miket1964

Hi

Update:

I have been in touch with National Debt Line, who were helpful and sent out an information pack and forms to fill in to dispute their claim.
Apparently they ignore any requests that is not sent on official forms and I have to prove to them that I don't owe the money and not the other way around, which seems a very strange situation, almost like demanding money with menaces.
"We say you own this, we don't have to prove it, so pay up or else".
Sending the forms in will halt this and I can also requests a copy of my file, so I will keep you all inform of progress.
But funny thing (SIC) is a week before this I had a letter saying that I was no longer entitled to the tax credit and then another this week outlining was our award is for this year!!!! Which was nothing, due to this amount owing - Go figure....