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

scootw1

oldboy64 wrote: »

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.

From the example above it said 1506. Surely someone would know they were paid 1506 pounds which they shouldn't have. When they ask for it back you should have it ready for them surely?

oldboy64

scootw1 wrote: »

From the example above it said 1506. Surely someone would know they were paid 1506 pounds which they shouldn't have. When they ask for it back you should have it ready for them surely?

Precisely - it should have been put in a safe place but it wasn't.

What this thread is seemingly trying to get at is that you shouldn't have to repay any money that someone received if it is proven that HMRC were totally at fault with no responsibility being attached to the claimant in paying it in the first place.

This theory is further given justification by Marliepanda when they quoted:

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

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

joe65

scootw1 wrote: »

From the example above it said 1506. Surely someone would know they were paid 1506 pounds which they shouldn't have. When they ask for it back you should have it ready for them surely?

I would agree here, if my backdated award was: £1500, I see no problem using that tax credit for what ever purpose you want


But if my award said: £200, and in fact they paid me £2000, I know perfectly well to question my award

I have no quarrel about repaying any overpayment, but I think if I work reduced or no hours, it going to take the tax office along time, and have read on the hmrc web site, they can write of overpayment

One thing I disagree with, is my tribunal court appeal, seems the tribunal cant rule on overpayment, as it not with in there jurisdiction, I feel that's being underhanded, the court can only rule if Im entitled to the full tax credits

princessdon

oldboy64 wrote: »

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!!

Don't get this. I've never claimed tax credits so I know I'm not entitled, if I got a payment I'd know the money wasn't mine and I'd not spend it. I'd find the owner and return it like any payment into your account you know isn't yours.

I understand that people sometimes don't know there was an overpayment and that this can raise the I told them x but they processed Y, it's their fault, but not the one like you describe where it was clear, the fact they took longer to reclaim should just mean more interest, it's not a reason to spend money you know isn't yours then ask to keep it because they took time asking for it back.

Icequeen99

Yes overpayments can be written off for financial hardship google the HMRC leaflet 'how hmrc handle tax credit overpayments' which explains it.

I have dealt with several cases where dis element was removed because there was no DLA and HMRC staff did not fully understand the rules for the dis element good luck with the appeal

IQ

oldboy64

joe65 wrote: »

I have no quarrel about repaying any overpayment, but I think if I work reduced or no hours, it going to take the tax office along time, and have read on the hmrc web site, they can write of overpayment

So in that case, are you suggesting that because the tax office took a long time to sort out your WTC and you ended up being paid more than you were entitled to - it should be written off and you being able to keep the money?

Much the same as finding a blank envelope stuffed full of £20 notes - say £5000 on the street. You have no idea where it came from or to whom it belongs. What would you do with it? Put it in your pocket and say nothing to no one - or hand it over to the police or maybe hand it into a bank asking that it be credited to the Government's Treasury account?

If you keep it it is still theft!

oldboy64

Icequeen99 wrote: »

Yes overpayments can be written off for financial hardship google the HMRC leaflet 'how hmrc handle tax credit overpayments' which explains it.

IQ

That is outrageous! Somebody receives more than they should have from HMRC, spends it, then tells HMRC that they are penniless and has the whole lot written off?

di3004

For the one's who are unaware of this, you can also request for a Subject Access Request (SAR) directly from the HMRC free, if you check on their website it will give you boxes to tick in order for you to tick what you require.

For example, tax/working tax credits.
Income Tax

etc......

joe65

oldboy64 wrote: »

So in that case, are you suggesting that because the tax office took a long time to sort out your WTC and you ended up being paid more than you were entitled to - it should be written off and you being able to keep the money?

Not exactly, I lost my renewal form for 2012, so had to phone them, and I was asked, if I get DLA, which I don't, so my claim ended

oldboy64 wrote: »

That is outrageous! Somebody receives more than they should have from HMRC, spends it, then tells HMRC that they are penniless and has the whole lot written off?

If Im at fault, there a very likely chance, it wont be written of, but if the mistake is on the tax office side, then they may have no choice but to write of the overpayment

joe65

Icequeen99 wrote: »

I have dealt with several cases where dis element was removed because there was no DLA and HMRC staff did not fully understand the rules for the dis element good luck with the appeal

IQ

Thanks, this is what happened to me, lost my renewal for 2012, so had to phone them

Was asked do I get DLA...No, so my claim ended, and few weeks later had a overpayment