Tax Credit overpayment - what has caused this?

jacobsdaduk

Every year, I call the Tax Credit Helpline when asked and I give them my and my wife's income for the year as requested. Always on time.

Suddenly, I've received a letter from HMRC recoveries telling me I have to pay them £1300 in an 'overpayment' and that they have written to us before to ask for the overpayment to be repaid. They haven't and the amount in question goes back 4 years!

I always deal with the issues and never ignore them so wrote to HMRC (could never get through on the phone) explaining that this is the first we have every heard of it an asking for an explaination as to why they think it was overpaid and a breakdown. I've now had a standard reply doesn't address any of the points raised and more to the point doesn't give any answer.

It's crazy. The first we have ever heard about it and we have always updated our information each year with P60's, etc. - I've been very strict about it.

Really don't know where to turn as I have no idea how little old me takes on the might of HMRC, but I really don't feel this is fair. If we have been overpaid, why haven't they reduced the past 4 years payments or stopped them altogether until paid back? Why has it taken the 4 years? Why was it never mentioned all the other years I called to give my updated income? It seems very unfair to suddenly drop this on us after all this time and without explaination.

Any advice would be appreciated.

Horseunderwater

Do you still have the award notices from 5 years ago? If yes look through them very carefully and see what income is printed on them. This happened to us when you used to be able to input details in on the online system. 2nd year it failed to register my earnings despite me putting them in and we got £3.5k extra. Rang them and said why, and they said spend it, it is due. Unfortunately it really was not and we have spent past 7 years paying it back. So that would be my first action. If any of those amounts do not match what you told them your P60 earnings were, that will be it. But if they do all match, they might have mixed your records up with someone else, so double check names on awards as well and also Nat insurance numbers. Sounds odd, but humans do miss hear things and input incorrect details on a phone. If everything is correct, then Not sure where they think they have made this overpayment.

System

Award notices usually mention somewhere that you have been overpaid and that whilst you have a live claim they will try to recover the overpayment from that.

What questions did you ask in the letter that weren't answered by their reply?

You need to know firstly what year or years the overpayments are supposed to have arisen in and ask for an explanation for each year. Once you have that you can then dispute the overpayment if you think they made an error.

missapril75

Ultimately, you might need the support of someone like CAB.

I'd suggest contacting your MP, though, if you have asked specific questions and not had them addressed.

An MP's enquiry usually gets immediate attention and a thorough check on what the problem is.

camlo

I was asked to repay an amount after husbands income provided by me did not match that held by 'tax man'. Of course it didn't as he pays a private pension which they knew nothing about but is a legitimate deduction from income..... I photocopied pension statement and sent it (about 6 times) and eventually 'overpayment' was erased.
Moral of story..... If you have vouchers/ pension/ childcare receipts/ allowable anythings make sure you get and keep copies. Don't send them your only copy.