Help - Old (2007) Tax Credit Debt being chased

liam8282

Ruby_woo wrote: »

Ok, so does all of the info you received prove you're right?

Yes, but they refused to look back, I am pretty sure it was due to timing restrictions. That is why we got our MP involved, who agreed with us and backed us, wrote letters to HMRC etc, but to no avail.

The original error was only highlighted when we started digging after the second error. They flatly refused to go back to the first error, especially as we had already paid it back.

But as I say since the second error we have always been in dispute.

Complete nightmare. We just gave up when HMRC didn't get back to us, thought they had given up too, but this comes up out of the blue.

The whole thing is a complete mess. We volunteered for the tax credits to be recalculated, we had all P60s, all details of employment etc. We would gladly pay anything if we owed it, but it is the Revenue that would owe us, so again they refused.

Ruby_woo

Oh god, that's truly dreadful. I'm so sorry but I have no other ideas:( xx

liam8282

It is just a PITA, sorry if I have been blunt or abrupt with anyone, I do appreciate the input.

FBaby

Yes, but they refused to look back, I am pretty sure it was due to timing restrictions

Then you sound like you answered your question yourself. There are timescales to check information, raise challenges and appeal. If you failed to follow these, then from their perspective, that's tough. It might not be fair, but these are the rules.

slg_sue

do you have anything to say they will not look any further into it due to timescales etc? If you do then that I believe will be good evidence for you to use.

Unfortunately I dont think many people win when disagreeing with our friends at HMRC :-(

Ruby_woo

Icequeen - do you know if hmrc are looking back at 2007 claims as there seems to be quite a few posts about them of late? X

MissMoneypenny

slg_sue wrote: »

Unfortunately I dont think many people win when disagreeing with our friends at HMRC :-(

My sister did, when she took HMRC to court over an overcharge of the tax for her business. But then her legal fees came to more than the tax debt HMRC said she owed them; and HMRC don't pay us mere mortals legal fees when they lose. Which meant she lost.

MissMoneypenny

David_Aston wrote: »

Miss Moneypenny
Can I thank you for your very straightforward advice to the Poster. I don't see you getting any thanks from him/her.
Just for interest. Which benefits could be used for the repayment of over payments, going forward do you think?

Thank you David.

They can adjust any claims and future claims for Tax Credits, to allow for the overpayment

As someone has said, if the claimant is working; has stopped claiming Tax Credits and ignores their letters, then HMRC can adjust their Income Tax code. According to the following site, they can take 3k a year that way.

If you are employed, HMRC may take the overpayment back by adjusting your tax code so that you have more tax deducted from your wages. They can take back up to £3,000 a year by doing this. You can ask them not to do it if you can make them an offer to repay a reasonable monthly amount. If HMRC want to do this, they will send you a letter explaining this. You should ring the number on the letter if you do not want them to do this. But remember you will need to be ready to offer them a monthly payment directly (straight away) otherwise they will go ahead with adjusting your tax code.

They can also take overpayments from a Universal Credit claim. Universal Credit is replacing the income based benefits presently known as; Housing Benefit; Child Tax Credits; Working Tax Credits; JSA; ESA; Income Support.

http://www.advicenow.org.uk/advicenow-guides/problems-with-benefits/tax-credit-overpayments/paying-the-overpayment,10217,FP.html