tax credit overpayment dilemma

notthemessiah_2

Hi forum folks - I hope one or more of you are able to give me some much-needed helpful advice on the following issue:
In June 2013 I received a letter from HMRC saying I had been overpaid almost £450 in tax credits for the period ending April 2006. Following over 20 calls to HMRC (only twice managing to talk to a real person!) I was informed that the alleged overpayment of nearly £450 arose through tax credits through my previous work for a university (I left in September 2005) during the tax year April 2005-April 2006.
However, my payslips from the same period show that I received less than £240 in tax credits during that tax year (I only received tax credits from one source, my university job during that tax year), clearly at odds with HMRC's alleged overpayment of nearly £450. HMRC said they wouldn't consider a dispute over the alleged overpayment amount as it occurred too long ago & that I would have to repay nearly £450, despite the fact i never received as much as that in tax credits in the first place!
Can any of you offer any pearls of wisdom on this please?

zagfles

You're a very naughty boy! Sorry - couldn't resist

Is this the first time they've told you about the alleged overpayment? Have you been claiming tax credits between 2006 and now? If so does it say anything about the overpament on the award notices?

notthemessiah_2

Haha - no problem, I never knew my father but I understand he was a Roman named Naughtius Maximus :P
Seriously though, let me answer your questions:
June 2013 was the first time I received word from HMRC on the alleged overpayment - I'd received other correspondence from HMRC earlier in the year concerning tax codes & rebates, but nothing about tax credit overpayment. HMRC say they 1st sent a letter about the alleged overpayment in June 2006. I didn't receive this letter, returning to full-time education and re-locating at this time probably didn't help!
I have only claimed tax credits during the April 2004-April 2005 & April 2005-April 2006 tax years. I received a regular amount of tax credits detailed in my monthly payslips which ceased when I left my job in September 2005 to return to full-time education.
HMRC have not been able to give me a monthly break-down of the overpayment or any details of its origin aside from it belonging to the April 2005-April 2006 tax year & totalling £447 - so not much in the way of clarification & incompatible with the records from my payslips & bank statements - no wonder i'm confused!

zagfles

I imagine the overpayment is actually over 2 years despite HMRC saying it's from one year. As you seem to have all your payslips, can you tell us:

a) what your income in the following 3 tax years was: 2003/4, 2004/5 & 2005/6
b) how much tax credits you got in 2004/5 & 2005/6
c) were you single or a couple (presume no kids?)
d) working 30+ hours or 16-30?
e) any disability elements claimed?

Also do you remember doing a "renewal" in around April-June 2006 (despite it being called a "renewal" it also finalises your claim from the previous tax year 2005/6, so you need to do it even if you've stopped claiming, if you didn't get this becuase you moved it may be the problem).