Tax Credit overpayment HMRC threats

Rob.Watson

Please help. My wife and I have been disputing an alleged overpayment by HMRC of Family Tax Credit going back a number of years. We have used MSE etc. to formally dispute the amount (almost £6,000), we have heard nothing for nearly a year, and this week, we received a letter demanding payment. I have called them, and I have been advised that the law has now changed, and even if the dispute has not been resolved, we have to make payment, or arrange a monthly payment plan, I now have a week to provide my monthly expenditure, otherwise the debt will be passed to debt collectors. If we finally win our dispute, we may then reclaim the amount we have paid, but it may take 'a few months' to sort that out. So basically, HMRC are now using a change in the law to demand all over payments back, even if you are still in dispute with them. Has anyone else had this, and is there anything that I can do please?

Sensemaya

Just seen your post in passing but couldn't leave without leaving a comment.

No doubt other posters with more indepth knowledge can help you, but what I would do is contact your MP asap. I would also be asking the case officer to furnish you with a link or to send you this 'new' legislation and when it came into force given your dispute has been going on for over a year.

Good Luck.

nannytone_2

they can demand that you make payments on the disputed amount, and the law is on their side.
if its any consolation ... i think its wrong too!

Icequeen99

Sensemaya wrote: »

Just seen your post in passing but couldn't leave without leaving a comment.

No doubt other posters with more indepth knowledge can help you, but what I would do is contact your MP asap. I would also be asking the case officer to furnish you with a link or to send you this 'new' legislation and when it came into force given your dispute has been going on for over a year.

Good Luck.

OP won't get very far - there is no legislation as HMRC don't need it.

Section 28 and 29 Tax Credits Act 2002 allow HMRC to recovery all overpayments no matter how they are caused - which includes those caused by HMRC error.

Their 'policy' however is that they won't recover if HMRC have failed to meet their responsibilities. This is set out in Code of Practice 26. Part of the policy was they would suspend recovery during disputes, however since July that has changed. As it is just a policy and the overriding legislation allows them to recover little an MP can do about it.

OP - i would do as they suggest. I have dealt with thousands of TC cases over the last 10 years and have never had an issue getting a refunded amount back (that is prbably one of the only parts that hasn't been an issue). I can't see you have little choice as they will continue recovery.

IQ

Sensemaya

Icequeen99 wrote: »

OP won't get very far - there is no legislation as HMRC don't need it.

Section 28 and 29 Tax Credits Act 2002 allow HMRC to recovery all overpayments no matter how they are caused - which includes those caused by HMRC error.

Their 'policy' however is that they won't recover if HMRC have failed to meet their responsibilities. This is set out in Code of Practice 26. Part of the policy was they would suspend recovery during disputes, however since July that has changed. As it is just a policy and the overriding legislation allows them to recover little an MP can do about it.

OP - i would do as they suggest. I have dealt with thousands of TC cases over the last 10 years and have never had an issue getting a refunded amount back (that is prbably one of the only parts that hasn't been an issue). I can't see you have little choice as they will continue recovery.

IQ

Thanks for the info.