Tax Credits Nightmare

sarahred777

I received a letter regarding an overpayment of tax credit for the tax year 2004. The overpayment was for £450 and after speaking to the helpline they have informed me that it was for payments made to me incorrectly through my employer from April to July 2004. I disputed this and filled in their appeal form and provided payslips to show that no money was paid to me by my employer for this period. I received a phone call today from HMRC collections agency telling me I had to pay the amount or face legal action. I again explained that I was disputing this amount and that I am waiting for a reply but they are still saying I have to set up payments until this is resolved. I explained that I was not prepared to do this and they informed me that legal action would be next.
I received the first letter at the end of June and two other letters since then and I have phoned them every time. Surely they have to give me time to dispute this as they have waited 9 years to get in touch.
Some advice would be greatly appreciated. They have told me this can take up to 13 weeks to resolve, I don't want to affect my credit status but at the same time I don't want to pay money I don't owe. To make matters harder the company I worked for during 2004 is no longer trading and went into liquidation in 2011.

Icequeen99

sarahred777 wrote: »

I received a letter regarding an overpayment of tax credit for the tax year 2004. The overpayment was for £450 and after speaking to the helpline they have informed me that it was for payments made to me incorrectly through my employer from April to July 2004. I disputed this and filled in their appeal form and provided payslips to show that no money was paid to me by my employer for this period. I received a phone call today from HMRC collections agency telling me I had to pay the amount or face legal action. I again explained that I was disputing this amount and that I am waiting for a reply but they are still saying I have to set up payments until this is resolved. I explained that I was not prepared to do this and they informed me that legal action would be next.
I received the first letter at the end of June and two other letters since then and I have phoned them every time. Surely they have to give me time to dispute this as they have waited 9 years to get in touch.
Some advice would be greatly appreciated. They have told me this can take up to 13 weeks to resolve, I don't want to affect my credit status but at the same time I don't want to pay money I don't owe. To make matters harder the company I worked for during 2004 is no longer trading and went into liquidation in 2011.

The new policy is not to suspend recovery whilst people dispute. You do need to speak with them and arrange repayment or they will take further action including distraint or county court if you leave it long enough.

If you arrange a suitable repayment plan, and win any dispute the money will be given back to you.

IQ