Tax credit overpayment frustration

sara539

I've disputing a tax credit overpayment since 2008. I won't bore you with all the details but I have evidence that the fault was HMIR's, not mine. After disputing the overpayment and providing lots of information, I heard nothing for THREE YEARS and assumed they had dropped the case. Then out of the blue I got a demand for repayment. I phoned them the same day and they told me they hadn't received the last letter I sent in May 2009, so I would have to send it again and they would look at it. I sent it - and a full summary of my case - by recorded delivery a month ago. I phoned them today as I'm very concerned they will send me another demand because I will not have paid. They told me they hadn't received my letter and supporting information. I sent it on 28 May recorded delivery and Royal Mail delivered it the next day.

How can you deal properly with these people?????

I am very anxious about receiving an even stronger demand for repayment but am at a loss as to what to do next.

Icequeen99

Contact Debt Management (who sent you the demand letter) who are separate from Tax Credits Office who look at the dispute.

Tell them what you have done, ask them to suspend recovery.

Then send it again recorded delivery to TCO.

IQ

sara539

Thank you. I did that first and they told me I had to speak to the Tax Credit Helpline. I spoke to them 3 times before I got someone who would log the details and not fob me off with 'it isn't on the system'. I gave her the Royal Mail reference number etc. and she said someone would phone me. Yeah right.

I think I will send another copy again though.

loisamelia

Just wanted to say hang in there Sara and keep going with the dispute. I disputed my overpayment af £11000 (yes eleven thousand pounds) as it was their fault not min and I got it all written off and the re-payments I had made paid back to me so it is worth persevering
Good luck

wigglespig

loisamelia wrote: »

Just wanted to say hang in there Sara and keep going with the dispute. I disputed my overpayment af £11000 (yes eleven thousand pounds) as it was their fault not min and I got it all written off and the re-payments I had made paid back to me so it is worth persevering
Good luck

Hi
well done,
i'm disputing a claim dating back to 2005 i have made some payments just to keep them off my case while still disputing. i have heard nothing since june 2011 so thought it was ended. today i recieved a letter saying i had to pay it all.

How long can they keep chasing isn't there a time scale before they have to stop??

benefitbaby

wigglespig wrote: »

How long can they keep chasing isn't there a time scale before they have to stop??

Sadly, no. Did they actually deal with your dispute and give an outcome in writing?

wigglespig

benefitbaby wrote: »

Sadly, no. Did they actually deal with your dispute and give an outcome in writing?

Hi they told me over the phone i could either dispute it again or pay having disputed it for over 2 years at the time and not getting any further forward, i agreed to pay a small amount while the dispute was still going on.

benefitbaby

wigglespig wrote: »

Hi they told me over the phone i could either dispute it again or pay having disputed it for over 2 years at the time and not getting any further forward, i agreed to pay a small amount while the dispute was still going on.

I wonder... is the letter merely a demand for payment or does it set out their response to your dispute? This will determine your next course of action. If it is a demand it does not sound as though they have processed your dispute.

A dispute needs to be set out on form TC846 and should detail how you (the claimant) met all your responsibilites and how they (HMRC) did not meet one of their responsibilities.

If it is a reply/response to your dispute and you think they have missed something relevant or omitted to take a particular point into account then you can ask them to consider your case again.


Tax credit overpayments are recoverable from you if:

• you did not meet all your responsibilities, or
• HMRC met all of theirs

If both you and HMRC made mistakes/did not meet all responsibilities then they should calculate what percentage is their fault and deduct this from the total overpayment.

If the overpayment arose as a result of a partner moving in or out and there was a delay in notifying tax credits HMRC should calculate what you would have been entitled to as a couple/single person (notional entitlement) and offset any tax credits you would have been entitled to from the total overpayment.

If HMRC are adamant they can recover from you then you can ask that they use their discretion to waive recovery if it will cause financial hardship or have a negative impact to welfare/health. Evidence will be needed to successfully argue for a waiver.

The best guidance I have seen on tax credit overpayments and recovery was written by the Low Income Tax Reform Group - do a search for LITRG Tax Credits Overpayments Guide.