Tax credit overpayment problem ( not sure)

woodyhxc

Hello,

I got a letter from HMRC at the beginning of June that said I've been overpaid £1856 for a (weird) period 6/04/2012 - 6/04/2012 (?). I called them because they didn't say what was wrong and they told me I wasn't working enough hours, which was not true. The thing is that when 2011-2012 tax year finished they sent me a letter and asked me to send them my P60, payslips and my work contract to check if they are paying me enough of tax credit, so I did and a month later I got a letter that said everything is fine and they will send me an award notice for the next year. I sent dispute letter to them over 3 weeks ago and they haven't answered me back yet, and the deadline for payment is 4/08/2013. Is there a chance that it's their mistake? Do I have to pay them while the dispute is in the process ( I hope) or I can wait till I get a reply from them?

cheers

Icequeen99

woodyhxc wrote: »

Hello,

I got a letter from HMRC at the beginning of June that said I've been overpaid £1856 for a (weird) period 6/04/2012 - 6/04/2012 (?). I called them because they didn't say what was wrong and they told me I wasn't working enough hours, which was not true. The thing is that when 2011-2012 tax year finished they sent me a letter and asked me to send them my P60, payslips and my work contract to check if they are paying me enough of tax credit, so I did and a month later I got a letter that said everything is fine and they will send me an award notice for the next year. I sent dispute letter to them over 3 weeks ago and they haven't answered me back yet, and the deadline for payment is 4/08/2013. Is there a chance that it's their mistake? Do I have to pay them while the dispute is in the process ( I hope) or I can wait till I get a reply from them?

cheers

Because they have made a decision about your entitlement (i.e. you are not working enough hours to qualify) you need to appeal using form WTC/AP and not dispute.

If you appeal, they will stop recovering whilst they consider your appeal.

You should get that appeal in as soon as possible. You have 30 days from the date of the notice to appeal, but can submit a late appeal after the deadline.

IQ

woodyhxc

Icequeen99 wrote: »

Because they have made a decision about your entitlement (i.e. you are not working enough hours to qualify) you need to appeal using form WTC/AP and not dispute.

If you appeal, they will stop recovering whilst they consider your appeal.

You should get that appeal in as soon as possible. You have 30 days from the date of the notice to appeal, but can submit a late appeal after the deadline.

IQ

Hmmm... the guy from the HMRC who answered my call told me to send a dispute. Also I checked WTC/AP rules and it says "You can’t appeal against a decision asking you to pay back an overpayment.
But, you can appeal if you think the amount of tax credits you were awarded in the
first place was wrong".

I just think they made a mistake, because back then when they checked my documents for 2011-2012 everything was fine and now they tell me that it's not.

Icequeen99

woodyhxc wrote: »

Hmmm... the guy from the HMRC who answered my call told me to send a dispute. Also I checked WTC/AP rules and it says "You can’t appeal against a decision asking you to pay back an overpayment.
But, you can appeal if you think the amount of tax credits you were awarded in the
first place was wrong".

I just think they made a mistake, because back then when they checked my documents for 2011-2012 everything was fine and now they tell me that it's not.

I can assure you that is not correct. I have had clients who have had enquiries/examinations into their claims several years running. Just because they accepted it in 11/12 does not mean they will accept it in 12/13 and 13/14 especially if a different officer is looking at it.

They may well have made a mistake, but the mistake would be about entitlement. As WTC/AP says - you can appeal if you think the amount of tax credits is wrong. Well that is exactly what you think. They have awarded you zero/no entitlement for the 12/13 tax year.

I advise you to re-send as an appeal.

IQ

compoff

The confusing thing is, at the time, they asked for the information, you got a letter to say everything was fine. Have you received any other requests or decision letters since then, cos they should not be making any amendments unless you have. If not, it would call into question whether the reason you have been given is correct. Is it was WTC only claim (do you have children on it also), has your income increased over the last few years?

woodyhxc

compoff wrote: »

The confusing thing is, at the time, they asked for the information, you got a letter to say everything was fine. Have you received any other requests or decision letters since then, cos they should not be making any amendments unless you have. If not, it would call into question whether the reason you have been given is correct. Is it was WTC only claim (do you have children on it also), has your income increased over the last few years?

Back in 2012 I sent renewal around end of May and on 13/06/2012 I got a letter asking me to provide them with my P60, payslips etc. for 2011-2012. I sent everything and on 7/09/2012 I got a letter that said they completed the check and accept my declaration in full and that I will soon receive and award notice detailing my tax credit for 2012-2013 which I received on 10/09/2012. After that I haven't received anything else from them until the end of tax year 2012 which was a renewal pack and then on 1/06/2013 this decision stating overpayment for 6/04/2012 - 6/04/2012 (1 day?). And like I said the person who answered my call said it was because I didn't work enough hours in 2011 - 2012 to be entitled to tax credit which isn't true, I told them I'm working 34 hours because of the nature of my work which makes my hours vary between 30-34 and nothing changed since then. It seems like they want the whole money back or most of it.

compoff

Just doesn't sound right, if they did make a decision to reduce your hours at the time they done that check, then they must notify you in writing that they have done so. If they have made this change, without notifying you in writing, their decision is illegal and will not stand up under appeal. I would suggest downloading and printing appeal form from link below. Explain the situation and that you have never been notified of any changes to the hours on your award. May not be a quick process but still the best way to go. As I say, if they have done this, the decision can not stand. If it is another reason, then they will have to address it anyway.

http://www.hmrc.gov.uk/leaflets/wtc_ap.pdf

Icequeen99

compoff wrote: »

Just doesn't sound right, if they did make a decision to reduce your hours at the time they done that check, then they must notify you in writing that they have done so. If they have made this change, without notifying you in writing, their decision is illegal and will not stand up under appeal. I would suggest downloading and printing appeal form from link below. Explain the situation and that you have never been notified of any changes to the hours on your award. May not be a quick process but still the best way to go. As I say, if they have done this, the decision can not stand. If it is another reason, then they will have to address it anyway.

http://www.hmrc.gov.uk/leaflets/wtc_ap.pdf

Agreed the only action going forward is an appeal.

But it isn't true that they must notify someone. Depending on where in the year a person is, HMRC have powers (for example under Section 16(1) and 18(1)) to make a decision if they think they have enough information. Their normal process is to write asking for more information, but if they have it already or think they do then they can amend the award and issue the amended notice.

The only exception to this would be enquiries into previous finalised years under Section 19 which do strictly require notice of the enquiry to be given. But the same rules don't apply to examinations.

IQ