Child Tax Overpayment

ffc1989

Hi everyone,

Just after a bit of advice or help from personal experiences with HM Revenue.

I and my wife received our tax credit renewal back in June advising we now owe them over £900 due to an overpayment in the last tax year.

We knew that we were no longer entitled when I started a new job in October 2012, it was probably around late November early December 2012 once our update hit the records due to finding out new tax code.

HM Revenue however continued to pay us despite this request so I transferred any money I got from them into another account until they eventually stopped paying late February 2012.

I have suggested that I pay back the amount that I put away (which was the full amount in this time period) but that isn't near the £900 + they are chasing. I have had numerous of phone calls with them over the phone throughout 2012 and 2013 advising them instantly when a job change or salary change occurred and I was always self concious of an overpayment so always seeked their assurance I was doing the right thing.

They have now responded basically with a duplicate of the renewal letter saying we owe the same amount, no acknowledgement or response to my detail in the letter. They did receive it as it was placed on hold and they confirmed they had when I rang.

Anyhow I want to fight further. I realise there may be every chance at some stage throughout the past tax year that an overlap ***could have*** occurred but can anyone pass on any similar scenarios? How long can this drag on for?

I feel like I am being punished for being honest and doing the right thing!

Any help appreciated.

ffc1989

Hi,

I made an initial phoe call a couple of days after I started my new job (so arorund 20th October) giving an indication of what my salary would be. HM Revenue suggested I waited for my first full month pay slip (so November).

Ignore the comment regarding tax code - that's me mixing up with somehting else.

I received a letter on 19th December advising that I told them the reduction in tax credts was causing financial hardship and would receive an awars notice, which I did the next day.

I however never suggested that the reduced payments were causing me finanical hardship and rang them up to tell them this. This is when we started transferring the money into an account in order to prevent an overpayment. After 3 months or so they eventually stopped and we were ready to pay back the overpayment come renewal but this is when they hit us with a higher fee which I'm trying to get them to explain.

I;ve had several telephone dicussions with them and been assured I have done everything above board and they have admitted (over the phone) to making errors throghout the claim.

I haven't completed an overpayment form - I did see one online and again asked before I sent my letter whether I needed to fill one out and the advisor said a letter would be sufficient.

Caz3121

ffc1989 wrote: »

We knew that we were no longer entitled when I started a new job in October 2012, it was probably around late November early December 2012 once our update hit the records due to finding out new tax code.

It will probably help to know the following

What was your income 2011-12 that was used to calculate your award for 2012-13
What was your total income for 2012-13

As tax credits work on annual figures rather than qualify to this date, then stop qualifying, it is probable that some of the payments that your received before you started work were also part of the overpayment due to the totals (so it is not just the payments received after you stated work) In some cases a change in circumstances could mean the whole years tax credits would be an overpayment

ffc1989

This was my concern - I will have to dig out all that information. The year before I was off work for a few months on statoury sick pay which reduced my annual earnings in a tax year so I guess I may have been falsely earning less money than what I earnt for that reason alone.

Its just very frustrating with all the reassurances I was given and I really can't afford this repayment - even if they do offer to offer a payment plan.

ffc1989

That was never mentioned (referring to tax office) they admitted having my calls on record with the request but just said for whatever reason it wasn't done (I always get the name of the advisor so passed that on). I asked the question how will this effect me and was given a response as 'it shouldn't cause any problems your end'.

I have spoken with other people and they have experienced simialr scenarios where the advice agents are either unclear and never prepared to give a 100% answer or just don't seem to care as its not there money / lives they are dealing with.

Probably a harsh comment as i'm sure there are many well trained staff but I feel as someone who has had so many conversations i'd understand it by now but it confuses the hell out of me!

ffc1989

And yes I did tell them I didn't want it but that was ignored for at least 2 months.

ffc1989

Thanks for your advice - I will continue to dispute for the time being especially with it being Xmas month there is no way I can afford it.