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Overpayment of working tax credits advise.

edited 30 November -1 at 12:00AM in Tax credits & benefits for work
1 reply 34.3K views
mrsbuttonmrsbutton Forumite
108 posts
edited 30 November -1 at 12:00AM in Tax credits & benefits for work
I'm wondering if someone can give me a bit of advise?

My partner was a mechanic for over 6 years sadly had to come out of that job due to an unfair boss, it took my partner nearly a year to find new enployment as they are just not enough jobs about. Anyway he retrained and got a job working at a warehouse on FLT's, we were advised as we have a son and my partner was 25 that we could claim Working tax credits, so we applied and got it. Sadly after 8 months my partner was laid off so we called Tax credit to make them aware, spoke to gent who advised that the payments would carry on for a futher 4 weeks to which I asked if we had to pay this back and he advised that it was an insentive to get another job and we wouldn't pay it back, he told us to call back when my partner had another job.

My partner had his new job confirmed on the 27th Jan 12, two weeks after he lost his job. I called and told them the change on the 3rd Feb 12, later than I wanted but I had my son's 1st birthday and my partner sadly the day after that had an accident at work on the 1st Feb, he was crushed between the Palet truck and a tower of batterys for the trucks. He was lucky they could save his leg as it was a high impact crash and now he has a metal plate in his leg. I called and spoke to a lady which took a good 45 mins to explain what had happened and to explain my partner would be recieving Sick pay with a top up from the company he works for, which would make us recieve his normal wage. She told me she would update the details and after 28 weeks if he does not go back to work he would lose his Working tax credits. Sadly due to his accident he is still after 10 month's not back at work.
I did my tax return and weeks later recieved my letter telling me what I was getting.
The letter told me that there was an over payment of over £2000 on the account that we would not yet have to pay back, I was livid and called the contact centre, spoke to a man who advised me that the overpayment was for Working tax credit as we had not called and told them that he was back in work so on there records we were not meant to be receiving it.
I told him that I had explained the call and gave him the dates that I called and also explained that what they are saying is that they have no account for the call, then after the call to which I told them that he was no longer working, then shouldn't the payments have stopped? The guy sent my a claim form to try and sort this out but as of yet there has been no outcome. This is over 3 months now, it's on my mind a lot cause I have no idea how we could pay it back! If we lost Working tax credits we would be on less that if we were on benefits and we really don't wanna go down the road.
My question is, I can provide pay slips for the time needed to prove that my partner was receiving pay from work, I can prove the call by my phone bill which I have advised them I can send them! So I can prove we should have received the payment why are they taking so long? and why should we pay it back when we were meant to receive it?
Also even the guy who I spoke to agreed that if they are going off the call of he is no longer working they should have not carried on paying! I would have not called to ask about this cause I had called to tell them he was back at work and the lady said she would update our details and we would carry on receiving payment so I had no reason to call.
Where do I stand on this?

Any help would be great!

Thanks :)
:A If i was a rich girl....... :A


  • CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
    89 posts
    Thank you for your query. From what we can gather, it appears that you have taken all the rights steps by notifying the HMRC of all changes in your circumstances as well as completing the dispute form. At of present, you just have to wait for the decision on your dispute.

    There is no right to appeal against a decision to recover an overpayment. However, a decision on the amount of an overpayment can be appealed to the First-tier Tribunal or, in N. Ireland, an appeal tribunal. The notice of appeal should be received by HMRC within 30 days of the written notice of the decision. The 30 days can be extended in certain, limited circumstances.

    When a person disputes the recovery of an overpayment because s/he believes that HMRC has not met all its responsibilities or on the grounds of hardship, automatic recovery of the overpayment is suspended until the Tax Credit Office has investigated the case and made a decision.
    Once a decision about the overpayment has been made, recovery of the overpayment being investigated begins again and does not cease, even if the claimant challenges the decision further through the complaints process, unless new information comes to light.

    HMRC will also review a case if the claimant feels that HMRC has not considered previous information provided. However, it will not suspend recovery while reviewing previously provided material.

    If recovery of an overpayment causes hardship, HMRC may reduce or write off an overpayment altogether. Alternatively, it may consider recovery over a longer period of time. This will depend on individual circumstances.
    You may challenge the recovery of an overpayment by demonstrating that hardship would result if this is appropriate. You will need to explain why you will be unable to meet essential living expenses and should be prepared to answer more detailed questions about your individual circumstances. HMRC should exercise its discretion in making a decision. If you are not happy with the decision, it can be challenged.
    We suggest that you contact your local bureau for further assistance with challenging the overpayment.
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
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