Child tax credit overpayments in 2010 and 2011

JustRaider

Today I've received letters from HMRC stating that
I must pay overpayments of Child Tax Credit for the
tax years 2010 and 2011. The payment has to be paid
in around 30 days

I phoned the HMRC payment office and I was informed
that I couldn't dispute the overpayments as there
was a 3 month time limit to do this from the issue
dates of the Tax Credits Notices i.e. 2010 and 2011.
Is this correct ?

I have checked my Tax Credits Notice 2010 and I cannot
see the overpayment amount which they now want payment
for.

Can anyone please give some advice on what I should do next.
Is there any way I could appeal or dispute this charge on
the basis of not being able to verify the overpayment amounts ?

Thank you,
JustRaider

Icequeen99

JustRaider wrote: »

Today I've received letters from HMRC stating that
I must pay overpayments of Child Tax Credit for the
tax years 2010 and 2011. The payment has to be paid
in around 30 days

I phoned the HMRC payment office and I was informed
that I couldn't dispute the overpayments as there
was a 3 month time limit to do this from the issue
dates of the Tax Credits Notices i.e. 2010 and 2011.
Is this correct ?

I have checked my Tax Credits Notice 2010 and I cannot
see the overpayment amount which they now want payment
for.

Can anyone please give some advice on what I should do next.
Is there any way I could appeal or dispute this charge on
the basis of not being able to verify the overpayment amounts ?

Thank you,
JustRaider

They are right about the 3 month time limit, it was introduced from 6 April 2013 and covers older overpayments as well.

First thing to do is to check the correct notices. When you say the letter says 2010 and 2011 what exactly does it say with regards the date?

IQ

JustRaider

Hi IQ,

Thanks for your reply.

The dates on the letters refer to the period ending 05/04/2010
and 05/04/2011. I've checked the 'Final Tax Credits Decision Notices'
dated 06/04/2009 - 05/04/2010 and 06/04/2010 - 05/04/2011.

The wording on the letters is :

"We have sent you a notice showing an overpayment of tax credits for the
period ending 05/04/2010"

"We have sent you a notice showing an overpayment of tax credits for the
period ending 05/04/2011"

Icequeen99

And are you sure that the final award notices for those years don't show any overpayment? Sometimes they can be difficult to spot.

On the back pages where it shows your breakdown, it should show amount due less amount paid. And you're saying no overpayment is showing?

The only other explanation is that your awards were re-finalised after the notices you have, possibly following a compliance investigation. DO you remember any investigation?

IQ

JustRaider

Hi IQ,

Investigation - Yes. In November last year received a letter
over our tax credit award year ending 5th April 2013. The letter
stated that we had been selected for review as as the information
we gave was different to that they held on us.
This was an income discrepancy. I replied back stating that their
information was wrong as they had not allowed for my AVC Pension
payments I had made through my employer. I then received a letter
stating that they accepted my explanation and the matter was
closed.
However, shortly after this our Tax Credit payments stopped.

Icequeen99

JustRaider wrote: »

Hi IQ,

Investigation - Yes. In November last year received a letter
over our tax credit award year ending 5th April 2013. The letter
stated that we had been selected for review as as the information
we gave was different to that they held on us.
This was an income discrepancy. I replied back stating that their
information was wrong as they had not allowed for my AVC Pension
payments I had made through my employer. I then received a letter
stating that they accepted my explanation and the matter was
closed.
However, shortly after this our Tax Credit payments stopped.

It sounds possible that they have actually gone back further on the investigation, although they don't normally go back such a long way usually just current and previous year. But if they did you should have been issued new final award notices.

The easiest way to find out is the call the helpline, ask them to look at the 09/10 and 10/11 tax years, tell them the date on your final award notices and ask whether there are any final notices after that date. If there are, ask for copies.

IQ

JustRaider

Hi IQ,

Thank you for your advice.

The HMRC payments helpline is now closed, but when open
I'll ask if they issued new final award notices and request copies.

I'll let you know the outcome.

Thanks,
JustRaider

JustRaider

Hi IQ,

First, the issue I originally posted. Yes, new final award notices were issued. I now accept the overpayment amounts for the years 2010 and 2011.

Now the next issue ! We've received a letter from 'Debt Management and Banking' - HMRC dated 27/5/2014.
It states that they have written to us before to tell us that we were paid too much tax credit. On the other side of the letter it states there is a working tax credit overpayment of £3116.35.
This is for the period ended 05/04/2004.

The issue is my wife and I have NEVER received Working Tax credit, as our gross incomes were over the threshold for receiving it. We have ONLY received Child Tax Credit.

Has anyone else received similar letters with this type of incorrect information ?

Thanks,
Just Raider

Horseunderwater

This was the 1st year that tax credits as they are now were introduced & there were loads of errors. So that could be one of them. Do you still have the award from back then? If not ask for a copy - they should still have it if they are chasing an overpay't.

JustRaider

Hi Horseunderwater,

Yes, i'm hoping I still have the award notice from 2004. I'll check
but its 10 years ago now !

Thanks for the advice - I'll ask for a copy of the award as you suggest, if I can't find the original.

JustRaider

Icequeen99

JustRaider wrote: »

Hi IQ,

First, the issue I originally posted. Yes, new final award notices were issued. I now accept the overpayment amounts for the years 2010 and 2011.

Now the next issue ! We've received a letter from 'Debt Management and Banking' - HMRC dated 27/5/2014.
It states that they have written to us before to tell us that we were paid too much tax credit. On the other side of the letter it states there is a working tax credit overpayment of £3116.35.
This is for the period ended 05/04/2004.

The issue is my wife and I have NEVER received Working Tax credit, as our gross incomes were over the threshold for receiving it. We have ONLY received Child Tax Credit.

Has anyone else received similar letters with this type of incorrect information ?

Thanks,
Just Raider

You're going to have some difficulty with this one. You are out of time for appeal and dispute. The debt will be statute barred, but that doesn't stop them sending it to a debt collection agency or using distraint, it would only stop court action.

I must say that in 10 years of working TC cases, i have never seen a one where a mistake like this was made. But with the HMRC system anything is possible.

I would suggest you dig out the evidence you can, otherwise you will need to write to HMRC for an explanation. The only way of then dealing with it is probably through the complaints system, however in teh meantime you will have to make an arrangement to repay otherwise they may well take enforcement action.

IQ