Tax credit overpayment

yellowsocks

Hello board!

I've recently had a demand for payment of £600 from the tax credit people - the supposed remains of an overpayment from a fair few years ago that we had been assured was paid in full (verbally).

We had been paying back the debt annually, capped at 10% but due to a computer error, our claim just stopped a few years ago. It re-newed itself but the claim is thought to be no longer continuous now, so the 'previous' claim must be settled, says the computer all of a sudden.

Our circumstances unfortunately have not changed at all in this time, so my position is that I'd like to continue to make repayments as before, capped at 10%.
Computer say 'no'.

It seems ridiculous that the government gave us some protection from aggressive repayment schedules, but seemingly they can tear up that obligation by just blaming the computer.

That surely cannot be right? What are my options?

Thanks for your consideration.

Johnny.99

If Cross Year Recovery - i.e. paying the money back through the ongoing award - is no longer possible then you'll have to setup some kind of repayment plan. It sounds like the overpayment has now been passed to Debt Management. Call up the number on the demand letter and discuss it with them.

Payment methods will be whatever suits you best - Direct Debit, Payslip, Standing Order, Card Payments, etc.

Incidentally, can I ask what telephone number is on the letter you were sent?

skateykatey

I've dealt with something v similar v recently. If the termination of your previous claim was entirely the fault of HMRC and if it was not for that you would still be repaying at a rate of 10% then that rate should remain. You may have to argue it through the complaints procedure and end up at the Adjudicators Office though.

yellowsocks

Number of the letter: 0300 200 3829 - debt management.

I do not want to lose the protection of the 10% cap, as letters received in the past suggest that my claim records have been totally in chaos, and whilst there is a time limit for any claim for underpayment, overpayment can be claimed back at any time in the future, it seems. It is a ratchet.

All my statements show no overpayment is owed, and the help lines have confirmed this, but now a £600 debt has turned up out the blue and so I have no idea what other amounts I could be hit with in the future. As I understand from a quick browse, they have a 10 year back log on manually reprocessing old claims spat out by the system.
It is unreasonable to expect people to keep a float for decades on end just in case payments that you are assured are rightfully yours, are asked to be returned immediately.

The debt manager I spoke with was extremely 'focussed' - and had no interest in the rights and wrongs of the situation and I feel aggrieved that I'm having to deal with this department at all when there is an existing repayment system with protection.

I have never waived my rights to this protection, whatever the computer says.
It seems I have a long road ahead of me.