What are the chances of having a Tax Credit Overpayment, written of completely

joe65

What are the chances of having a Tax Credit Overpayment, written of completely, have tried on other forums but no reply, so think I try here

My tax credit appeal, went to the tribunal court on Fri 22 Aug, with in 2-3 weeks I will know if I have won my case, my appeal is against the tax office stopping my payments for the disability element of the tax credits

If I lose my appeal, when all tax credits are recalculated, I will possibly owe them around £4500+ in overpayment, now I see no way of repaying this, especially if I lose my appeal, so is it possible for them to write of my overpayment on the grounds of financial difficulties

At the moment I'm struggling with work, and only working 21 hr per week, and from this, my wage is £556, now from this I pay £200 mortgage, £200 debts, debt program DAS, £90 Council Tax, £75 Scot Power, so I'm going to be struggling, the only thing I'm willing to change is my mortgage payment, and that might be reduce by £50. Changing my debt might be harder', and would need the agreement of the 4 creditors

I don't even know if it going to be possible for me to continue to work, while ill, my health over the last few months has deteriorated, and for the last 2 weeks, I have been suffering from chronic fatigue, which I find isn't very pleasant for me

My manager and my doctor will help to make sure I get feed, and able to buy food, so my doctor going to help me with the food bank, and my manager will give me 20 star points which equals to £20 gift card

marliepanda

If you got money you were not entitled to, and it was not the HMRC's fault, then they will not cancel it. They cannot just write off because you are in financial difficulties, or anyone would just say 'sorry I have no money, can't repay'

Do you still get tax credits? If so, they will take the overpayment back from your current award until it is repaid. If you stop getting tax credits then they will ask for a payment plan to be set up.

princessdon

For people to help you will need to provide details of why the overpayment occurred and why you think they should write it off.

Do you get DLA do you hit the other disability criteria

joe65

marliepanda wrote: »

If you got money you were not entitled to, and it was not the HMRC's fault, then they will not cancel it. They cannot just write off because you are in financial difficulties, or anyone would just say 'sorry I have no money, can't repay'

Do you still get tax credits? If so, they will take the overpayment back from your current award until it is repaid. If you stop getting tax credits then they will ask for a payment plan to be set up.

Yes I should be entitled to the tax credits, and it was the disability element, which was awarded to me 2009, and according to there web site, my claim should continue, even though I'm no longer receipt of any benefits

2012 I misplaced my renewal form, so had to phone them, and they asked me, do I get DLA, no I replied, so from there my claim was closed for the disability element, but could still claim for wtc

I dispute, I'm not at fault, it the tax credit office, for awarding me the full tax credits, my claim in 2009 is kind of complicated

I sent a 10 page documentation, explaining all the qualifying conditions, even the 3rd one, which I wasn't sure if I would meet it: In work between 2007 - 2009, I had a lot of time of work sick, but never claimed CSP, and I even told this to the tax office. So based on this, they awarded me the disability element, I even checked if my award was correct, which it was

So basically in 2012 they have turned round and told me, Im not entitled to the disability element, and now have an overpayment

I am very hopefully I will win my appeal, even if it not based on me being sick, there is a possibility they owe me national insurance credits, for periods where I paid no national insurance on my wages

So it basically if I lose my appeal, there basely no real income

marliepanda

I would say it all depends on the outcome of your appeal then?

joe65

princessdon wrote: »

For people to help you will need to provide details of why the overpayment occurred and why you think they should write it off.

Do you get DLA do you hit the other disability criteria

Some of this I have already replied to, but I don't know how they came to award me the disability element in 2009,

I have even done a subject access request, and this is one thing I asked for: In 2009, who dealt with my claim, and how did they come to a decision to award me the disability element of WTC

To date they haven't answered this for me, if my claim was processed correctly, a few months later, I would have a valid claim

marliepanda

When you got the award notice with the disability extras, did you tell them of their mistake?

You seem to have known you weren't entitled to the disability element but were happy to take the payments

joe65

marliepanda wrote: »

When you got the award notice with the disability extras, did you tell them of their mistake?

You seem to have known you weren't entitled to the disability element but were happy to take the payments

Reply #4, you will see, I had checked my award, and was told it was correct, so I'm a wee bit bemused, why I'm now being told I'm not entitled to this tax credit

oldboy64

marliepanda wrote: »

If you got money you were not entitled to, and it was not the HMRC's fault, then they will not cancel it.

From that comment one would assume that if it was entirely a case of HMRC getting it wrong you will not have to repay it.

I don't know which fairy tale book you have gleaned that from.

'I'll tell you a true story'

A guy received WTC's up to the end of Feb 2013. All of the documentation came back as confirming that for 2013/14 there would be no more WTC payable - ceased employment at the end of Feb 2013. They had failed to include the severe disability element back to April 2012 so an appeal was lodged. Up to that point everything was fine - all that was needed was to confirm the actual income for 2012/13 by the 31st July 2013.

However HMRC re-opened the closed claim as their system couldn't accept the appeal with a closed claim. Unfortunately in re-opening the claim the computer went on its merry way and calculated what was due for 2013/14 based on estimated figures.

HMRC in June 2013 paid into the bank account the backdated 2013/14 award (April 13 to June 13) a total of £1506.

The guy told HMRC that there had been an error as he wasn't entitled to any WTC's for 2013/14.

So eventually HMRC realised what they had done and apologised for causing the problem that had absolutely nothing to do with the guy.

Last week he had a demand from HMRC for the repayment of £1506 immediately as WTC's were no longer in payment.

None of this was the fault of the guy - HMRC have accepted full responsibility for what they did.

However they still want their pound of flesh and this week he has had to offer them £500 at the end of September, £500 at the end of October and £506 at the end of November. He is still waiting to see if they will accept it.

So as I have said, even if HMRC are totally at fault with no blame being attached to the claimant it still has to be repaid!!

scootw1

I don't get tax credits. But isnt it up to the person receiving them to check they are correct by working them out? Is it quite straightforward to work out roughly what you should get? If so how can there be overpayments?

oldboy64

scootw1 wrote: »

I don't get tax credits. But isnt it up to the person receiving them to check they are correct by working them out? Is it quite straightforward to work out roughly what you should get? If so how can there be overpayments?

Absolutely!!

Yet when HMRC do make a mistake and they accept that there is no responsibility attached to the claimant and they are told about their error - you still have to pay the money back.

If you fail to notify them and it is entirely the fault of HMRC - you still have to pay the money back.

If you are at fault in any way and you either don't tell or do tell HMRC -you still have to pay the money back.

You have to pay the money back irrespective of what argument you try to put up even if you were completely innocent in the matter - you had money that isn't yours.