Tax credits appeal problem

Rickster1978

Hi

Just after a bit of advice really.

Tax credits made a huge balls up and over paid us by £720. They kept paying us extra money each month. Every month we would phone them and tell them that they had made a mistake. Every month they would say it was correct and that would be the final
Payment. This went on for about 6 months. We phoned them 5 times in total.

On the last call they decided that we had to repay it all. Despite them telling us on numerous occasions that it was definitely out money and that they would not ask for it to be repaid.

It turns out that they had been paying back someone else's repayments to our account. It was nothing we had done wrong at all.

So 19 weeks ago we appealed and to this day we have not heard anything. Then today I get a letter asking for repayment of the full amount. My wife phoned them and they explained that it was a computer generated thing. But I thought it should have all been put on hold until the appeal was dealt with???

They even had the cheek to ask us to start repaying it now to stop any further letters and advised my wife that the letters would get more demanding and could end up in legal action against us. Surely they haven't got a leg to stand on if they still haven't sorted our appeal?

Any advice?

Ricky

Icequeen99

blondebubbles wrote: »

Have you made an appeal or a dispute? These are two different processes with different timeframes. If you disagree with an overpayment it should be a dispute.

Have you called to make sure they have received it?

Any overpayment recovery will continue even if you are appealing or disputing. They previously suspended recovery if you disputed but they changed the process a few months ago. If you start repaying and your dispute is successful they'd refund what you'd already paid.

See their guidance: http://www.hmrc.gov.uk/taxcredits/things-go-wrong/overpayments/dispute.htm

That's not correct. If you dispute, they will not suspend recovery. But appeals they do still suspend recovery.

OP - you are using the word appeal but it sounds very much like what you are doing is disputing. There was an overpayment - it is just you don't think you should have to pay it back due to HMRC mistake.

I would suggest you agree to a repayment plan and send in another dispute along with a complaint. Make sure you use the TC846 dispute form and not the appeal form.

IQ

Rickster1978

Sorry, I used the word appeal but it was a dispute as it was their mistake and we made every effort to put it right. They are outside of the 17 weeks they advised that it would take.

The dispute has been received. We sent it recorded and phoned to check with them.

Can they take us to court whilst they have not dealt with the dispute?

Rickster1978

Hi

It appears that they were supposed to be repaying somebody else but for some reason it got allocated to our account. We constantly phoned them to tell them it wasn't right and they kept telling us to go and spend it as it was definitely our money and that they would not ask for it back.

No we don't get anything any more so they can't get it back that way.

Icequeen99

blondebubbles wrote: »

My apologies. I have never seen this done in my 8 year involvement in tax credits. Probably not relevant either way as it seems an appeal may not be what's needed in this case.

What you've never seen recovery suspended for an appeal? Really? (Edited to add I am genuinely surprised - not accusing you of not been truthful!)

I have represented on hundreds of appeals and they always get suspended. The change of policy was only for disputes.

This hasn't been updated yet for the new dispute changes but it covers the appeals point http://www.hmrc.gov.uk/leaflets/how-hmrc-handle-txcr-opay.pdf

IQ

Icequeen99

Rickster1978 wrote: »

Sorry, I used the word appeal but it was a dispute as it was their mistake and we made every effort to put it right. They are outside of the 17 weeks they advised that it would take.

The dispute has been received. We sent it recorded and phoned to check with them.

Can they take us to court whilst they have not dealt with the dispute?

Yes they can. I have had 3 county court cases in the last 4 months that have involved tax credits cases and two more than have seen a threat of distraint. As BB says, it is unlikely to go quickly but I certainly wouldn't risk it.

IQ