Tax Credit overpayment

Porge

The Tax Credit office say that they overpaid us by £448, dating back to 2009/2011. It is the first we have heard of it and have written back to say that, Under the Limitations Act 1980, the "debt" is now void, as it is over six years old. Apparently, Tax Credit is immune to this rule and we still have to pay the money. I have not been able to get a a sensible response to explain how we owe the money. Can anyone advise us what we can do about it?

Icequeen99

Porge wrote: »

The Tax Credit office say that they overpaid us by £448, dating back to 2009/2011. It is the first we have heard of it and have written back to say that, Under the Limitations Act 1980, the "debt" is now void, as it is over six years old. Apparently, Tax Credit is immune to this rule and we still have to pay the money. I have not been able to get a a sensible response to explain how we owe the money. Can anyone advise us what we can do about it?

Tax credits are bound by the Limitations Act - it is tax that is not. However, the 6 year rule just means that they cannot take court action to recover the debt. However they can take it from your wages, take it from future tax credits or other benefits, send bailiffs using distraint etc...Even if you get a sensible response about why you owe the money you are out of time to dispute it or appeal it. You would have been informed of the overpayment on your final award for that tax year - if you check it you will see the overpayment listed on the back page.

IQ

chazbear32

Hi please could someone help me , tax credits have finalised my award and they are saying they have over paid me when I earned £2400 less due to being on Maternity Leave?! Any help would be appreciated thank you.

Icequeen99

chazbear32 wrote: »

Hi please could someone help me , tax credits have finalised my award and they are saying they have over paid me when I earned £2400 less due to being on Maternity Leave?! Any help would be appreciated thank you.

It would be better if you could start a new thread.

IQ

taxman1234

i work in tax credits......the limitations act is not valid...if you dispute the overpayment especially for earlier years you will receive a TC1162 out of time letter...it was up to you to check that your final award notice was correct and that's it...pay up.

Sorry...we have no leeway

Icequeen99

taxman1234 wrote: »

i work in tax credits......the limitations act is not valid...if you dispute the overpayment especially for earlier years you will receive a TC1162 out of time letter...it was up to you to check that your final award notice was correct and that's it...pay up.

Sorry...we have no leeway

They are two separate things.

The limitation act does apply to tax credits - check out your own DMB manual. http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm595080.htm

The dispute time limit would have passed but that is about disputing not recovery.

IQ

taxman1234

Sorry

In essence it's virtually a play on words.......this "enquiry" will end up one way or other receiving a TC1162 out of time reply plus a paragraph absolving the HMRC of all limitation acts procedures.

Trust me.

taxman1234

The unfortunate thing about this is that the Limitations Act is a red herring...it won't help the claimant get his/her money remitted which is all they want.

taxman1234

So would it not be better to educate the public about the uselessness of the Limitations Act ?

Icequeen99

taxman1234 wrote: »

So would it not be better to educate the public about the uselessness of the Limitations Act ?

There are a handful of people on this board who are very knowledgeable about tax credits. We try and tell people factual information and then they can choose what do with it.

The Limitation Act is certainly not useless - if HMRC commenced county court proceedings against someone out of time then the Act would be very useful and I have myself used it a situation just like that.

We have already told the OP that he is out of time for a dispute. He will be out of time for an appeal.

The Limitation Act is unlikely to help him because it doesn't stop HMRC recovering old debt, it just means that they can't take court action but they can use several other means of recovery.

It is more helpful to just stick to the facts in my view and then let the OP decide what to do. Saying the Limitation Act 'is not valid' is just wrong. It is a perfectly valid act, it just has a limited application. Maybe if HMRC staff understood the law a bit better, and had written a proper reply to the OP, then he would have known exactly where he stood without having to ask for clarification on a forum.

IQ

taxman1234

I have no axe to grind...all i am saying is that the Limitation Act is used day in day out by claimants as a sort of "get out of jail free" card.

It is not and they need to be educated as such.

Let me assure you it's not a pretty job i do.

And with that i will disappear into the mists..................