tax credits stopped, compliance letter received

bibliboo

Thanks for all your constructive replies, they're a lot more informative than Mr 'sorry that's not my department' that I spoke in the main tax credits number! I decided it best to keep my original posts as short and simple.

In response to previous replies, I am living with my partnera nd children and am living at my parents home. They already have this information. The reason for this is that I'm due to start at university in a few weeks. Its a good job I thought ahead like this and moved in with my parents prior to the course as it would've been as struggle with my tax credits stopping without notice.

But although my claim is certainly real, but it does freak you out when they so confidently stopped the payments without notice. I had no idea they could do this without notice. It could be a scare tactic. But it makes you wonder why they would do that.
I am also self employed, so they're asking for a lot of paperwork about that as well.

Not only that, they actually make checks when you initially apply anyway, so why they need so much confirmation that my children are real is unusual. I will try and keep this updated, and I will make a complaint to them of their unprofessional handling of this case. Thanks once again!

FBaby

Not only that, they actually make checks when you initially apply anyway

Not in relation to self-employment.

As your partner lives with you, then we can assume that your claim is joint, not single? If single, then it would without a doubt explain the check.

Otherwise, it could be related to your self-employment status.

Have you been asked for any information already in the last few months?

Icequeen99

Something doesn't sound right about this.

Have you received your final award for 2014/15?

If you have, then the powers they are using to look at your current award are under Section 16 Tax Credits Act.

They have two powers - they can request further information in order to investigate the claim or they can just terminate payments if they already have reason to believe your award is wrong.

I am not aware of any compliance process where they stop payments and then send out a compliance letter.

Does the letter mention anything about the payments stopping? What is the exact wording? Normally it says if you don't respond in 30 days they may stop your payments.

IQ

bibliboo

Yes it is a joint claim and I have received the final decision also. The letter actually does say that payments have stopped and there was no mention previous to this of payments stopping or an investigation. It says the believe the award is wrong.

Today they actually picked the phone up (only two rings before they picked the phone up as well!). They confirmed that it is not unusual for payments to stop during an investigation (really?) and told me that they need to make sure children are attending school (wouldn't social services have taken my children off me if they didn't?). They assured me that it is a normal procedure and apologised for not answering the phone till now.

I will put this in writing to them when I send the information they ask for.

bspm

again how old are your children?

skateykatey

Icequeen99 wrote: »

Something doesn't sound right about this.

Have you received your final award for 2014/15?

If you have, then the powers they are using to look at your current award are under Section 16 Tax Credits Act.

They have two powers - they can request further information in order to investigate the claim or they can just terminate payments if they already have reason to believe your award is wrong.

I am not aware of any compliance process where they stop payments and then send out a compliance letter.

Does the letter mention anything about the payments stopping? What is the exact wording? Normally it says if you don't respond in 30 days they may stop your payments.

IQ

I agree ice queen and it was my understanding that s.16 enquiries had all but ceased. In order to issue the enquiry there must be reasonable grounds rather than just a random check. This is an area where TCO have come in from some hefty criticism and quite rightly so.

To the OP have TCO suspended your payments or have they actually terminated your award? Either way, it's very shoddy treatment.

FBaby

It sounds like it might do with your self-employment then and checking that you work 24h (assuming partner doesn't work). To be eligible to tax credits for working 24 hours, you need to have resident children with you, so maybe that's why they want to check that too.

Icequeen99

It isn't normal procedure at all.

It doesn't even make any sense. As I say, they can only legally stop your payments if they already have reasonable grounds for believing the award is wrong (i.e. evidence) in which case they don't need to ask for any further information.

The only other way to suspend payments in year is if you fail to reply to a formal request for information.

I suggest you get some advice on this - it could drag out for a considerable period of time.

You could try contacting https://www.litrg.org.uk or https://www.taxaid.org.uk or even CAB for some advice.

IQ

Icequeen99

skateykatey wrote: »

I agree ice queen and it was my understanding that s.16 enquiries had all but ceased. In order to issue the enquiry there must be reasonable grounds rather than just a random check. This is an area where TCO have come in from some hefty criticism and quite rightly so.

To the OP have TCO suspended your payments or have they actually terminated your award? Either way, it's very shoddy treatment.

But if they are stopping current year payments it can't be a s.19 enquiry as that would only relate to a previous year, it would have to be s.16 to stop current year.

IQ

skateykatey

Sorry ice queen I'm confused; I haven't mentioned s.19? I agree with you, it can't be anything other than s.16 according to the timing.