Tax Credit Overpayment and Notional Offsetting

wheeze

I split with my ex in May 2011 and informed tax credits ten days later and made a new single parent claim. They are now chasing me for an overpayment for that tax year. I appealed and they have replied today to say I still have to pay (or 50/50 with ex)

So I phoned them earlier and asked what more I could have done and she said it nearly always happend in joint claims when there is a split and even if I'd told them on the day there would still be an overpayment. She said there is no point in appealing again as they had fulfilled their obligations, she admitted that I had fulfilled mine too..

So is there any point in appealing again? And also having googled around there seems to be notional offsetting where they would reduce the overpayment by what I would have got as a single person, not sure if this is approriate in my case though. Any advice appreciated:D

emilia1

A similar situation has happened with me as well, i was advised by them to fill a dispute form and an appeal form in which i have done, i also called the welfare rights which are helping me as well, i suggest you do the same, Tax credits will tell you anything to try and get the money back, i have been onto that many people on the phone at there offices, they sent me a letter first asking about my situation then they sent me a letter 2 days later with a massive overpayment on it, when i phoned them for a dispute form i never recieved it so i had to ring them again, then i asked them for an award letter and i never recieved that, so i rang them again. Then they tried to tell me that because they send out second class letters that it can take up to 2 weeks for it to arrive, i said rubbish you were quick enough to send me a letter asking me for money, yet when i ask you for something i dont receive it. I rang them again last friday to ask for the award letter again, and as it stands today ive still not got it.
So yes i would tell you to take it as far as you possibly can and appeal again, and yes there is a notional entitlement, some win some dont, but its a chance im prepared to take, and while your in dispute with them they cant take any money off you.
And depending on your financial circumstances if you do have to pay it back, they usually will accept £10 a month, good luck and fingers crossed for you.

shedboy94

wheeze wrote: »

I split with my ex in May 2011 and informed tax credits ten days later and made a new single parent claim. They are now chasing me for an overpayment for that tax year. I appealed and they have replied today to say I still have to pay (or 50/50 with ex)

So I phoned them earlier and asked what more I could have done and she said it nearly always happend in joint claims when there is a split and even if I'd told them on the day there would still be an overpayment. She said there is no point in appealing again as they had fulfilled their obligations, she admitted that I had fulfilled mine too..

So is there any point in appealing again? And also having googled around there seems to be notional offsetting where they would reduce the overpayment by what I would have got as a single person, not sure if this is approriate in my case though. Any advice appreciated:D

It depends when your single claim was backdated to. If your single claim was backdated to the day after you separated, then you have effectively been paid twice for those 10 days, so you will have to repay it.
Notional offsetting is only applicable if the change is reported outwith the backdating period, ie at the moment the backdating rules allow 31 days, however if a change is reported 3 months down the line, then there will be a period of 2 months that can't be backdated - it is this 2 month period that can be looked at for any offsetting what was paid to what would have been paid.

wheeze

thanks both. That makes sense re the notional offsetting that's why I didnt think it applied to me.

We split on 6th May, I rang them on the 16th May expecting to claim from the day I rang.

The advisor asked when we split, so I said the 6th and she said claim from that date, wish I hadn't now:( I will write in with that info but won't hold my breath

tpl

I understand the overpayment wasn't your fault, but I don't understand why you shouldn't pay back the overpayment, if you have received it; if they set up a repayment plan with you.

Icequeen99

wheeze wrote: »

thanks both. That makes sense re the notional offsetting that's why I didnt think it applied to me.

We split on 6th May, I rang them on the 16th May expecting to claim from the day I rang.

The advisor asked when we split, so I said the 6th and she said claim from that date, wish I hadn't now:( I will write in with that info but won't hold my breath

But there shouldn't be an overpayment overall due to the delay - if they stopped your joint claim on the 16th May from 6th May, there is 10 days overpayment.

However your new single claim would have started from 6th May, so you can use that 10 days backdating to pay back the overpayment on the joint claim.

It is possible some of the overpayment is down to payment dates on the joint claim, but that is just the way things work.

IQ