Tax Credit Overpayments

G0335

Hi There
Newbie here, I have just been hit by HMRC for alleged overpayment of Tax Credits dating back to 2004 - 2006. They are demanding 4K from myself and partner.
Is this legal ? I have no paperwork going back that far and frankly no recollection of getting paid anywhere near this much money.
I have asked them for a breakdown as to how they arrived at this figure all i recieved was a lot of figures and percentages that frankly i could'nt understand.

Please can someone help with some advise how to fight this.
Thanks.

pmlindyloo

You can print off your bank statements/PO accounts so that you have a record of what tax credits you actually received.

Usually an overpayment happens because of a change of circumstances that you did not report.

So, did anything happen during this period of time? Your partner moving in/change of income/change of hours/children leaving full time education etc etc.

To answer your question then yes, they can chase you for this and unless an 'official error' was made then they can ask for it to be paid back.

You need to look at the figures (go to CAB for some help if you need to) and work out why they are saying you have an overpayment.

You can put in an appeal (I believe you have one month only)and they will not be able to take any money from your current tax credits whilst it is in appeal so do this to give yourself some time.

G0335

Thanks for your help off to CAV i think!

Icequeen99

pmlindyloo wrote: »

You can print off your bank statements/PO accounts so that you have a record of what tax credits you actually received.

Usually an overpayment happens because of a change of circumstances that you did not report.

So, did anything happen during this period of time? Your partner moving in/change of income/change of hours/children leaving full time education etc etc.

To answer your question then yes, they can chase you for this and unless an 'official error' was made then they can ask for it to be paid back.

You need to look at the figures (go to CAB for some help if you need to) and work out why they are saying you have an overpayment.

You can put in an appeal (I believe you have one month only)and they will not be able to take any money from your current tax credits whilst it is in appeal so do this to give yourself some time.

Not entirely correct. Even if it is official error, if you didn't notice the error and tell them about it you can't have it written off.

Appeals and disputes are two different things. Unlikely you can appeal now. The 1 month runs from the final award notice for the tax years concerned. It can be extended to 13 months for late appeals, but you're unlikely to be able to even get into that time limit if it is 2006 unless for some odd reason HMRC have issued a new final award notice (unlikely).

Besides an appeal is where entitlement and the actual calculation is wrong.

Most people need to dispute which is where there is an overpayment but you don't think you should pay it back. The new policy from April 13 is that they will not suspend recovery for overpayments for disputes.

So no matter what you do, do not ignore the demand letters. If you have to, make an arrangement to repay a small amount monthly while you find out the cause and get a dispute in. If you win, you will get the money back. I have seen several cases recently where HMRC were either about to send the bailiffs or have actually filed county court papers because people ignored the demand letters and were sending complaint letters instead.

IQ