Overpayment of tax credits ten years ago

chipmunk

Hi, someone I know has just been contacted by the Tax Office saying that in 2003/04 they were overpaid tax credits and the taxman is asking them when it will be paid back ! They were told by the tax office how much they were entitled to so it's the Tax Office's mistake. Can they go back that far for a repayment ? Can my friend appeal against this ? Apparently they did visit the tax office at the time to query the amount they were being paid and were told the figure was correct. Any advice would be appreciated. Thanks

talkinpeace

If they have documents from the time querying it and HMRC saying it was right, and the return has not been queried in between, as its more than 7 years old I'd be tempted to tell HMRC to sling their hook

chipmunk

Don't know as they actually have any documentation regarding the query, I think it was just a verbal discussion. My friend says they're going to lodge an appeal but obviously they're quite concerned about the matter. Thanks for your reply.

somethingcorporate

After this amount of time I would certainly be appealing. I am sure the chances of turn-over on appeal will be good.

Seems unreasonable for ten years to go by without noticing a mistake.

zagfles

Have they been getting tax credits since? Maybe up till last year? They carry forwards the overpayment while there's still a claim going, but if the claim ends (eg if their income now over the threshold) they can ask for it back. They should have details of the overpayment on their annual award notices.

System

What zagfles says makes sense.
If they had an ongoing claim Tax credit office would normally try to hold back some of the money they are paying them to set against the overpayment in the earlier year. But they can't continue to do that if they are no longer entitled to anything.
If that is what TCO have been doing over the years then it would be clearly shown on the award notices.
if they haven't kept their own copies get your friend to make a subject access request for copies of the award notices sent to them over the years. That will show them what has been going on and help them formulate their appeal.