WTC advice?

zaksmum

My friend had an overpayment of WTC - she was awarded it then told she'd not in fact been entitled to it so would have to repay it.

She is in communication with HMRC about whose fault caused this to happen. They take at least three months to answer every letter she sends.

Meanwhile she has been awarded DLA HRM and subsequently awarded the disability element of WTC at the end of last November.

If she is found to be responsible for the repayment of the earlier WTC how will this be taken? Will they deduct a weekly amount from her new award?

Icequeen99

zaksmum wrote: »

My friend had an overpayment of WTC - she was awarded it then told she'd not in fact been entitled to it so would have to repay it.

She is in communication with HMRC about whose fault caused this to happen. They take at least three months to answer every letter she sends.

Meanwhile she has been awarded DLA HRM and subsequently awarded the disability element of WTC at the end of last November.

If she is found to be responsible for the repayment of the earlier WTC how will this be taken? Will they deduct a weekly amount from her new award?

No, they won't deduct it if it is a completely new claim. If the same claim has been held open and reactivtated (or she was getting CTC and WTC is just added back on) then they will recover the overpayment from her new payments.

IQ

zaksmum

Icequeen99 wrote: »

No, they won't deduct it if it is a completely new claim. If the same claim has been held open and reactivtated (or she was getting CTC and WTC is just added back on) then they will recover the overpayment from her new payments.

IQ

Thanks Icequeen. So what action will they take to recover it then? It is a completely new claim. She was initially awarded WTC but had told the person on the phone what her take home pay was which she says he asked her about.

The award was made on the basis of this amount when in fact it should have been her gross income. She was ordered to repay but maintained she said to the man when asked about income "Do you mean my take home pay?" and says he said yes. This dispute is ongoing as they are taking forever to respond to her letters.

When she was awarded DLA HRM and then WTC Disability element it was about 4 years later during which time she'd had no WTC at all as she was deemed to earn slightly too much.

Thanks so much for the advice so far!

Horseunderwater

If your friend knows the date she rang them telling them about her income, there should be a recording of the call, which can be requested under a subject access request to the Tax credits dept at HMRC. That would be proof that this is what she was told. If she can get hold of that she should be able to dispute it more. Are you sure that she would be due Disability element of WTC if she only gets the mobility bit of DLA? I was under the impression that it only applied to the Care element, but I could be misinformed. I'd hate her to end up with another overpayment.

zaksmum

Horseunderwater wrote: »

If your friend knows the date she rang them telling them about her income, there should be a recording of the call, which can be requested under a subject access request to the Tax credits dept at HMRC. That would be proof that this is what she was told. If she can get hold of that she should be able to dispute it more. Are you sure that she would be due Disability element of WTC if she only gets the mobility bit of DLA? I was under the impression that it only applied to the Care element, but I could be misinformed. I'd hate her to end up with another overpayment.

OOH I hope it does apply to the mobility part of DLA! you've got me worried now. I'll google it and check that out. She filled in the form honestly and was awarded it.

She did ask for the recording of the call and got a DVD but that particular call was not on it.

zaksmum

Yes, it seems any rate of DLA will entitle you to the disability element, along with some other conditions which my friend does meet.

Icequeen99

Debt Management and Banking (recovery part of HMRC) will ask her to repay the debt directly. Recovery might be suspended if it is still in dispute.

And yes, you're right about the disability element. Any rate of DLA is fine for the disability element, it is the severe disability element that has a higher requirement.

IQ

zaksmum

Icequeen99 wrote: »

Debt Management and Banking (recovery part of HMRC) will ask her to repay the debt directly. Recovery might be suspended if it is still in dispute.

And yes, you're right about the disability element. Any rate of DLA is fine for the disability element, it is the severe disability element that has a higher requirement.

IQ

Thanks again Icequeen. Will she still be able to repay by a weekly amount?

Icequeen99

zaksmum wrote: »

Thanks again Icequeen. Will she still be able to repay by a weekly amount?

Normally monthly, and yes depending on her income/expenditure.

IQ

battyboimatt

Are they not scrapping the disability element of WTC some point.

Icequeen99

battyboimatt wrote: »

Are they not scrapping the disability element of WTC some point.

Tax credits are being replaced by Universal Credit, but there are no separate plans just to scrap the disability element of WTC.

IQ