Child tax credit, should I repay it or fight it?

nathan1454

Hi,
Ive come on here asking for advice please.
Heres the story.
Back in 2004 an overpayment was credited to my bank account. The sum of £4000. On discovering this we immediately called the tax credit people to question this payment.
It turned out they had made a mistake in our claim and that we were not entitled to this money.
We asked how we could return this money thinking we could just make a payment at the bank. But they told us we cant pay it back that way and that its easier for us to keep it and for them to take it out of our weekly payments.
Fast forward to august 2012 and due to changes in are combined income we were no longer entitled to payments anymore.
We recieved a letter saying we owed them £1445 which was left over from the original overpayment.
We disputed this and they ruled we still had to pay them back.
My point is that we contacted them when we saw the mistake wanting to give this money back we didnt ask for.
What should I do? Thankyou.

xylophone

You have had the money. You have been "repaying" it by receiving less than you would otherwise have received?

In a way you have had an interest free loan?

The money is owed and it would appear that your financial circumstances should make it possible to repay?

It would not be unreasonable to ask for a repayment plan?

Horseunderwater

You can still make an arrangement to pay it back in instalments - they should send you a letter with details on it about how to contact the overpayments department, who can then set up a direct debit for you to pay it back in monthly or even 4 weekly sums until it paid back in full. This is usually over a year - but if it is too much over that time frame then they may be able to do it over a longer time frame. It never hurts to ask.

nathan1454

Thankyou for your replies.
It seems the general feeling is that I should pay it back. Even though I never asked for it.
Perhaps I should have kept hold of the money for the past nine years, if only I had known this would happen.
I have phoned and discussed a payment plan as one of my options but they wanted to go through my financial details in a 20-30 minute phonecall. I guess this is my only option.
Thanks for all your help.

Nathan

Troutwrestler

The general feeling is that you should pay it back, because its not your money and you agreed to make repayments?? Just because you don't get tax credits, you no longer want to pay them ???

princessdon

Do you genuinely think you shouldn't repay this?

If so the time had well passed as you were happy to repay whilst getting credits, now you have more money you think you don't have to. Do you expect people to support your decision not to pay?

nathan1454

Money was given to me, so yes I should pay it back.
But I didnt ask for it and I wanted to pay it back the day I received it.
I read elsewhere on this forum of people in a similar position not having to pay it back.
And as the original post says princess, im asking for advice not support in not paying it.

bestpud

If they'd not bothered to sort it in 9 years, it was their fault and I'd tried to pay it back then I'd fight it all the way.

However, it seems you have been paying it back over the last 9 years? Is that correct?

If so, then it's a simple case of them being unable to take it from your award any more and finding another method of reclaiming it. If that is the case, then yes, you should carry on paying it off.

nathan1454

Thats what im going to do bestpud.
We have received no tax credit for eight years cause its been paying off this overpayment. Im surprised only £2500 was payed off in eight years.
Thankyou.

tokenfield

nathan1454 wrote: »

Hi,
Ive come on here asking for advice please.
Heres the story.
Back in 2004 an overpayment was credited to my bank account. The sum of £4000. On discovering this we immediately called the tax credit people to question this payment.
It turned out they had made a mistake in our claim and that we were not entitled to this money.
We asked how we could return this money thinking we could just make a payment at the bank. But they told us we cant pay it back that way and that its easier for us to keep it and for them to take it out of our weekly payments.
Fast forward to august 2012 and due to changes in are combined income we were no longer entitled to payments anymore.
We recieved a letter saying we owed them £1445 which was left over from the original overpayment.
We disputed this and they ruled we still had to pay them back.
My point is that we contacted them when we saw the mistake wanting to give this money back we didnt ask for.
What should I do? Thankyou.

For a start, if HMRC made the mistake in paying you the money and it had nothing to do with you giving them any wrong info, and that you contacted them advising that you weren't entitled to the money - you should have 'Disputed' their attempt in the first place if they attempted to recover it.

Provided that you were completely innocent and notified them, they cannot recover the money from you.

However, as you seem not to have disputed it and allowed them to recover £2500 of it by deductions from an ongoing claim, you have effectively agreed with them that it is repayable.

A similar thing happened to me this year and they banked just under £1500 which I knew I was not entitled to. I telephoned and wrote to them telling them of their mistake. In a subsequent telephone call with them, HMRC advised me to dispute it when they attempt to recover it as there are sufficient grounds for not having to repay it. They also said to not admit the debt or offer to settle it. There isn't anything that they can do - they know it, but certainly won't tell you that! I only found out when I told them that a complaint was being lodged which it has.

So the money is mine to keep and it serves them right for making the mistake in the first place.

FBaby

tokenfield wrote: »

So the money is mine to keep and it serv
es them right for making the mistake in the first place.

Hope you never make mistakes yourself, you know, if one day by mistake you give a £50 instead of £10 and you only get £5 back, but don't realise until you get home. I'm sure you will be fine to accept that it serves you right that the shop pocketed your £45 for being too stupid not to notice, or if not you, your child, or grand'ma who has poor vision....