TC overpayment

JohnJLewis

Suddenly get a nasty letter saying we were paid £500 too much back in 2013.

Is it possible to get an explanation before I can appeal it?

zagfles

What does your final award decision for last tax year say? Doesn't that provide an explanation?

Carl31

JohnJLewis wrote: »

Suddenly get a nasty letter saying we were paid £500 too much back in 2013.

Is it possible to get an explanation before I can appeal it?

Absolutely. HMRC are quite good at getting things wrong. Don' hand any money over until they provide a detailed explanation

There was a statistic in the media recently that said that 9 put of every 10 appeals against HMRC are upheld

Icequeen99

Carl31 wrote: »

Absolutely. HMRC are quite good at getting things wrong. Don' hand any money over until they provide a detailed explanation

There was a statistic in the media recently that said that 9 put of every 10 appeals against HMRC are upheld

I think you are referring to complaints going to the Adjudicator, not appeals. And if you do not engage with them for the debt, they can involve debt collectors, take you to court etc...even if you are waiting for a detailed explanation. There is no suspension of recovery, so best to arrange a time to pay and then challenge.

IQ

JohnJLewis

This is the first ever letter, no explanation. I have lots of time.

I will ring today and ask for explanation, then appeal because I think its wrong.

I do not have £500, if I cant pay can they take it off my current TC at no extra penalty or anything?

JohnJLewis

blondebubbles wrote: »

As above, an appeal may not be the correct route. You may need to dispute the overpayment. It is important to use the correct route as they may not look at it otherwise.

If you still have entitlement to tax credits then yes they can recover from your existing award.

Im disputing it first.

Trying to fill out this form

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/Benefits_and_Credits/1.0/TC846&template=TC846.xdp

they really make you jump through hoops...

Icequeen99

JohnJLewis wrote: »

Im disputing it first.

Trying to fill out this form

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/Benefits_and_Credits/1.0/TC846&template=TC846.xdp

they really make you jump through hoops...

I would suggest you try and get an explanation before you fill in that form. That is a dispute form and as BB says above - you need to know what has happened to find out whether you should dispute or appeal. They are two very different processes.

But both can take a few months to get a response, in the meantime if it is a dispute they will pursue the debt and likely send it to a debt collection agency. Only an appeal will suspend recovery, but most overpayments do not fall into the appeal category.
You should therefore agree a time to pay monthly repayment while you challenge it, if you are successful any payments will be given back to you. if you don't do that you risk them taking enforcement action.

IQ

JohnJLewis

I just spent ages filling it all out and then find out you cant email it, you have to print it and send it snail mail. Damn, I havent got a printer.

Very annoying, is it possible to dispute by phone? I hate being on the machine for hours to such an expensive number.

JohnJLewis

Icequeen99 wrote: »

I would suggest you try and get an explanation before you fill in that form. That is a dispute form and as BB says above - you need to know what has happened to find out whether you should dispute or appeal. They are two very different processes.

But both can take a few months to get a response, in the meantime if it is a dispute they will pursue the debt and likely send it to a debt collection agency. Only an appeal will suspend recovery, but most overpayments do not fall into the appeal category.
You should therefore agree a time to pay monthly repayment while you challenge it, if you are successful any payments will be given back to you. if you don't do that you risk them taking enforcement action.

IQ

thanks for helpful info.

what is enforcment action? If I do nothing wont they just take it from my TC payments?

will there be other charges on top?

JohnJLewis

If I dont do anything at all will it be any different to disputing/appealing and losing?

Icequeen99

JohnJLewis wrote: »

thanks for helpful info.

what is enforcment action? If I do nothing wont they just take it from my TC payments?

will there be other charges on top?

At present they can't recover it from your ongoing tax credits payments. They are due to introduce that from October but only in certain cases.

Enforcement action means passing to a debt collector, taking you to county court, bailiffs which are all options open to them if you ignore it.

I would never suggest ignoring it as an option. Either agree a time to pay, dispute or appeal it (after finding out the explanation) or do both but doing nothing will only lead to further problems.

IQ