HMRC changed my tax code to claim back their overpaid Tax Credits

Dates

HMRC have written to me and my employer informing that they are changing my tax code as years ago, I was apparently overpaid Tax Credits by £1077.33. They have therefore adjusted my tax code and reduced my tax-free amount to enable them to collect 'their' over payment. Are they allowed to do this? It was not my fault that they overpaid me? Is there anything I can do? Has this happen to you? Dates

FRESTER

Dates wrote: »

HMRC have written to me and my employer informing that they are changing my tax code as years ago, I was apparently overpaid Tax Credits by £1077.33. They have therefore adjusted my tax code and reduced my tax-free amount to enable them to collect 'their' over payment. Are they allowed to do this? It was not my fault that they overpaid me? Is there anything I can do? Has this happen to you? Dates

This has been happening a lot recently.
I doubt you can do anything about it.This government are hell bent on collecting all money owed by all means available to them.

mel48rose

Did they write to you at the time and inform you that you had an overpayment?

misspickle_2

This is why it is so important to dispute and appeal against hmrc when they hit you with an overpayment that you disagree with.
They have a habit of haunting people many years later.
Sorry dates I know this doesn't help you personally but its great you've highlighted it because it may raise awareness.
How much are they taking off you? What are you losing per month via the new tax code? Is it leaving you in financial difficulty?

Icequeen99

The letter should have told you that you can refuse to have it coded out. However, you will have to offer up another form of payment and it will have to be an amount they accept.

The time to dispute and appeal is when you are first informed of the overpayment.

IQ

tracey97

I had an over payment down to their error. They wrote to me, admitting it was their error (even though when I was awarded the payment, I phoned them to double check and was told it was correct) and I still have to pay it back. Its worth asking your MP to help you with this - you will probably still have to pay it but at least he or she will speak to someone a bit higher up than the call centre staff and get the right information for you.

Icequeen99

tracey97 wrote: »

I had an over payment down to their error. They wrote to me, admitting it was their error (even though when I was awarded the payment, I phoned them to double check and was told it was correct) and I still have to pay it back. Its worth asking your MP to help you with this - you will probably still have to pay it but at least he or she will speak to someone a bit higher up than the call centre staff and get the right information for you.

When you phoned them did you tell them they had made a mistake? Or did you just ask if the award was correct? Presumably something on the award notice must have been wrong.

IQ

tracey97

No, they didnt admit to anything on the phone. I had been claiming tax credits and recieving £7 a fortnight. I then called them to advise that my husband had been awarded contribution based ESA. I then received a large sum into my account and an award notice stating that I was now eligible for £90 a week. I phoned them to double check and they said it was correct. so I used the £600 they has paid in to pay off an overdraft.
I then recieved another award notice stating that I was NOT entitled to any tax crediits and would have to repay. None of the staff I spoke to could offer an explaination. My MP wrote to them and I got a letter saying that it was their fault because when I called to advise of hubbys ESA, they had entered it as Income related, They sent their apologies but are unable to write off the overpayment.
I'm just glad I called them to double check, as I think this is why they looked into it. I wouldve racked up a huge over payment by now if I hadnt called them

Icequeen99

tracey97 wrote: »

No, they didnt admit to anything on the phone. I had been claiming tax credits and recieving £7 a fortnight. I then called them to advise that my husband had been awarded contribution based ESA. I then received a large sum into my account and an award notice stating that I was now eligible for £90 a week. I phoned them to double check and they said it was correct. so I used the £600 they has paid in to pay off an overdraft.
I then recieved another award notice stating that I was NOT entitled to any tax crediits and would have to repay. None of the staff I spoke to could offer an explaination. My MP wrote to them and I got a letter saying that it was their fault because when I called to advise of hubbys ESA, they had entered it as Income related, They sent their apologies but are unable to write off the overpayment.
I'm just glad I called them to double check, as I think this is why they looked into it. I wouldve racked up a huge over payment by now if I hadnt called them

That makes sense. The MSE guide on here about overpayments used to be (haven't checked it lately) is wrong because it suggests in this case your overpayment would be written off because it was caused by a HMRC mistake. But that isn't the official policy.

The reason they won't write it off is because they made the mistake, but the obligation then passes to you to check the award notice and to tell them that they have put income based instead of contribution based. Only if you did that would the overpayment be written off.

I see cases like this a lot and unfortunately the bottom line is check every detail on the award notice.

IQ

misspickle_2

tracey97 wrote: »

No, they didnt admit to anything on the phone. I had been claiming tax credits and recieving £7 a fortnight. I then called them to advise that my husband had been awarded contribution based ESA. I then received a large sum into my account and an award notice stating that I was now eligible for £90 a week. I phoned them to double check and they said it was correct. so I used the £600 they has paid in to pay off an overdraft.
I then recieved another award notice stating that I was NOT entitled to any tax crediits and would have to repay. None of the staff I spoke to could offer an explaination. My MP wrote to them and I got a letter saying that it was their fault because when I called to advise of hubbys ESA, they had entered it as Income related, They sent their apologies but are unable to write off the overpayment.
I'm just glad I called them to double check, as I think this is why they looked into it. I wouldve racked up a huge over payment by now if I hadnt called them

I've heard that if its their fault and you appeal then they wait til the last minute and then throw it out. I would be kicking and screaming all the way! Its disgraceful the mess they land people in.
That piece of paper saying it was their fault was probably all you needed but it sounds like its too late for you to appeal now.
Ice queen may well be right though as it changes all the time and concentrix are involved now and making a right pigs ear of it all by the sounds of it. Ive read some horrifying threads on it. What's frustrating is there doesn't seem to be anything set in stone. The goalposts change all the time and people are left uncertain. Hmrc do have to answer to courts though and the onus is on them to take you to court if the procedure is followed correctly. It does quite often get thrown out. The problem with your case is you didn't challenge them.

misspickle_2

blondebubbles wrote: »

An appeal wouldn't be appropriate in that case, it would need to be a dispute.

Yes! Sorry bubbles. I'm forever doing that :eek:
I always say appeal when I mean dispute!
Your so right to highlight that point aswell because there is a big difference between the two.
Foot in mouth again. My apologies.