Can you trust Tax Credits to get it right?

Katymac_2

We initially enough for a 2nd hand car and longer term, maybe enough for a deposit on a house, plus monthly income

To give a scale

But I think a new kettle/toaster & a holiday might be the order of the day

forgotmyname

They are a nightmare. You need to send the forms back by July is it?

If not you wont get your TC.

I phone them and they say it will be automatically renewed, Come September no money.
I phone them again and they say yeah no problem it has been renewed and payment will be in a few weeks.

Thats nice of you, Its a good job we can afford to eat.

lilibet1

very pleased for you xxx

Katymac_2

So I rang today to see how things were going; and they are going badly

They have sent me a letter (24th October) unsurprisingly it hasn't arrived yet & they can't tell me what it says other than I'm not having any more backdated underpayments.

So initially I didn't include DH's PHI as income & I received benefit; they then reclaimed this and told me I had to include his money as income. Which I have done ever since so WHY is it my fault that I didn't claim the money?

Apparently I should have known the TCO was wrong

What am I psychic? If a government office tells you 'these' are the rules how would any normal person have the information or knowledge to tell them they are wrong

So I am penalised for believing the TCO

!!!!!!!

Katymac_2

I think I will have a little cry

Icequeen99

Katymac wrote: »

So I rang today to see how things were going; and they are going badly

They have sent me a letter (24th October) unsurprisingly it hasn't arrived yet & they can't tell me what it says other than I'm not having any more backdated underpayments.

So initially I didn't include DH's PHI as income & I received benefit; they then reclaimed this and told me I had to include his money as income. Which I have done ever since so WHY is it my fault that I didn't claim the money?

Apparently I should have known the TCO was wrong

What am I psychic? If a government office tells you 'these' are the rules how would any normal person have the information or knowledge to tell them they are wrong

So I am penalised for believing the TCO

!!!!!!!

I would seriously consider getting some advice from someone who knows about tax credits and the legislation. Not your MP, that isn't their area of specialism.

Try one of the tax charities, TaxAid or LITRG or CAB (if the have a dedicated welfare rights specialist).

IQ

Katymac_2

I think so too

But until i get the letter I am stuffed

Katymac_2

Finally got the letter & the wording is
"the law only allows us to change this decision in certain circumstances and updating the income details is not one of these"

I intend to write back that I have not updated the income details they are as the have always been; however they have decided to change the way they treat the income & that is what I want them to do for previous years.

Does that make any sense?

EG I said £X a year Permanent Health Insurance in the 'other income' box

I could never have not input the income, I just expected them to deal with it appropriately. They didn't at the time, I expect them to put this right now

Icequeen99

HMRC are right, they cannot amend a claim if the claimant made a mistake.

However, they can amend it if you took a certain action because of their advice. There is a big difference between the two.

You need to quote s.21 Tax Credits Act 2002 and the official error regulations.

You need to show that you did not materially contribute to the error.

This is one of those cases where it could be difficult if the answer is in the notes etc.....

Problem with it is, if HMRC refuse to apply the official error regs there is no appeal right. The only option open to you to challenge would be judicial review which is incredibly expensive.

IQ

Katymac_2

"This is one of those cases where it could be difficult if the answer is in the notes etc....."

sorry could you explain that for me?

I do have the photocopy of the cheque repayment they asked me to make in 2003 - I don't know if that helps

I may go in the attic & see if I have any old letters from them (50/50 chance DH keeps I throw)