Working tax credits huge bill

jay459

About 2 years ago I was receiving working tax credits at £40 per week...I was working through a recruitment agency on a low income...

After some time the employer offered me a contract so my wages increased. I moved in with my girlfriend and her parents as it was closer to work, i changed my address with work so my payslips would come to my girlfriends house...

Then I ring hmrc to enquire about if I can still receive, I was told my address was wrong, they have me down as my girlfriends address even though I only had informed my employer of my updated address, he also said I wouldn't be eligible...

I only stayed a few weeks with my girlfriend as we split....

But having collected some mail recently I've discovered a few letters from hmrc and equita debt recovery for £1600.

I've phoned hmrc and basically they say the bill is due to the fact they sent documents that needed to be signed and returned. I was amazed they were looking £1600 for non return of a form. Her reply was it's an important legal document....

And the fact they were sending the letters to my ex girlfriends address when my address with hmrc when I signed up of the tax credits was my home address with my mum and dad. Surely they are at fault here and £1600 clearly is not fitting for this incident.

I've been told to send a tc846 dispute form. Is there anything I can do?

I really can't be having this go on my credit file, I'm applying for a mortgage soon. I phoned equita who said it won't but how can they assure me that...?

Icequeen99

jay459 wrote: »

About 2 years ago I was receiving working tax credits at £40 per week...I was working through a recruitment agency on a low income...

After some time the employer offered me a contract so my wages increased. I moved in with my girlfriend and her parents as it was closer to work, i changed my address with work so my payslips would come to my girlfriends house...

Then I ring hmrc to enquire about if I can still receive, I was told my address was wrong, they have me down as my girlfriends address even though I only had informed my employer of my updated address, he also said I wouldn't be eligible...

I only stayed a few weeks with my girlfriend as we split....

But having collected some mail recently I've discovered a few letters from hmrc and equita debt recovery for £1600.

I've phoned hmrc and basically they say the bill is due to the fact they sent documents that needed to be signed and returned. I was amazed they were looking £1600 for non return of a form. Her reply was it's an important legal document....

And the fact they were sending the letters to my ex girlfriends address when my address with hmrc when I signed up of the tax credits was my home address with my mum and dad. Surely they are at fault here and £1600 clearly is not fitting for this incident.

I've been told to send a tc846 dispute form. Is there anything I can do?

I really can't be having this go on my credit file, I'm applying for a mortgage soon. I phoned equita who said it won't but how can they assure me that...?

When you moved in with your girlfriend, you claim should have ended anyway and you would have needed to make a joint claim.

It sounds like you didn't return a renewal form. When you spoke to them and they told you they had you down at your girlfriend's address, did you ask them to correct the address?

If you did, you may have a dispute as they sent the forms to the wrong address but if you didn't receive anything after that I would have expected that you follow up or at least go and get post from your girlfriend's house or get a redirect or similar.

Best advice is to first make a time to pay arrangement and then sort out any dispute.

IQ

jay459

I was only living with my girlfriends folks for a month and my benefits were cut off. I was clearly being honest phoning hmrc to notify them my wages were being increased and was pretty sure my benefits would stop and they did.

The girl said there is nothing that can be done but surely there is, £1600 is a crazy amount and I just don't have it...

How long before this hits my experian/equifax file....

john1002

Jay459,


It will only hit your credit record if you default and HMRC take you to court and get a court order(CCJ), any other agreement etc will not be recorded. But this is only going to happen if you don't enter into any correspondence with them.


Follow the advice above and start to get the info your end together to start the dispute procedure.


John

jay459

I spoke to citizens advice today who told me to try to get hmrc to recall the debt and enter into a payment plan and then dispute it at the same time...

Hmrc would not recall, first they said they would recall if I paid back within the year then on my second call they said no so I said I wanted to make complaint but they would not put me onto her manager, just it would get a 48 hour callback...

Equita say I can pay £48 per month and have assured me it won't hit my file, the guy put me on hold and spoke to his manager who confirmed this but when I asked to get it in writing they said it's up to hmrc.

I phoned hmrc and they said it's up to equita as it's now their debt, have yet to recall equita to see if they will now put it in writing..

What's the point in me paying this debt if it's going to hit my credit file, only reason why I'm paying it is I cannot have it going on my file as hoping to get a mortgage in April..I claimed these credits legally, I'm getting this bill for not returning a renewal form...

Hmrc are not playing ball nor equita, they don't care the reason for the bill, they just want the money, no compromise...

Should I seek a solicitor as surely it's on paper I claimed these credits legally, I was entititled to them, you can't take them back for not returning a form

Icequeen99

jay459 wrote: »

I spoke to citizens advice today who told me to try to get hmrc to recall the debt and enter into a payment plan and then dispute it at the same time...

Hmrc would not recall, first they said they would recall if I paid back within the year then on my second call they said no so I said I wanted to make complaint but they would not put me onto her manager, just it would get a 48 hour callback...

Equita say I can pay £48 per month and have assured me it won't hit my file, the guy put me on hold and spoke to his manager who confirmed this but when I asked to get it in writing they said it's up to hmrc.

I phoned hmrc and they said it's up to equita as it's now their debt, have yet to recall equita to see if they will now put it in writing..

What's the point in me paying this debt if it's going to hit my credit file, only reason why I'm paying it is I cannot have it going on my file as hoping to get a mortgage in April..I claimed these credits legally, I'm getting this bill for not returning a renewal form...

Hmrc are not playing ball nor equita, they don't care the reason for the bill, they just want the money, no compromise...

Should I seek a solicitor as surely it's on paper I claimed these credits legally, I was entititled to them, you can't take them back for not returning a form

Unfortunately they can, as the link BB posted shows.

You were not entitled to them. Under the Tax Credits Act, to have entitlement there must be a valid claim for the tax year. Tax credits only last up to 1 tax year. The payments you get from April are provisional payments and are discretionary for HMRC to make. The renewal form is your claim for the new tax year. So if you fail to fill it in, you have made no claim and therefore there is no entitlement. There is no decision to appeal as HMRC can choose whether they stop discretionary provisional payments.

The debt is still HMRC's debt, equita are just acting as the recovery agents in this case.

IQ

tomtontom

Can you not pay off the debt from the £15K you've got in the bank?

jay459

My main objective is not getting this on my credit file. If I accept to pay equita £48 per month as they proposed is there no chance of it reaching it. They said it definitely won't but yet they won't give me it in writing...