Urgent help with 6k tax credit demand

SnowWhiterThanWhite

Johnny.99 wrote: »

Who sent the demand for 6K? Was it a Notice to Pay letter from the Tax Credit Office? A Final Opportunity letter from Debt Management & Banking? Or from a private Debt Collection firm?

Hi, it was a letter from the tax office but, because my brother didn't open his mail, when I first tried to speak with them, they originally told me that nothing could be reviewed as 30 days had already passed. I then wrote back with an explanation as to why my brother didn't respond to which I've been sent another letter giving a further 30 days for full repayment. The letter is from HMRC tax office, Preston

SnowWhiterThanWhite

Icequeen99 wrote: »

Ok, so some of the advice already given is correct.

There is joint and several liability and they both had a responsibility with regards to notifying that their claim ended.

The ex-partner cannot have claimed as a single person at the same time. She must be in the same position. The system would not allow a joint claim to run at the same time as a single. She will have missed out as well. She should have notified when he left and then she should have submitted a single claim.

Firstly, your brother should only pay 50% of it.

Secondly, a dispute in this case is likely to fail because even if he couldn't deal with things and report things, his ex-partner presumably could. However, if there is any reason the ex-partner could not have reported the breakdown of the relationship then you should put in a dispute on form TC846.

Assuming the debt stands, the next thing you need to do is approach HMRC using their mental health policy.

http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM555600.htm

Clearly, the situation with your Brother is well documented. If you have power of attorney they should deal with you.

This is the important part: If you receive information/evidence about the mental health problem of a claimant you can agree not to pursue that claimant for payment. This is to prevent any detrimental effect or unreasonable distress to the claimant

This page explains the effect of this on a joint debt when there is a relationship breakdown. http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm555630.htm

Hopefully that will help and the debt will be written off.

IQ

Thanks so much for this. Lots of useful info. I did try contacting the 0300 no. on the letter and was asked to put everything in writing, again.

At no point, even after advising of his MH issues, was I offered any advice or signposting.

However, as has been mentioned, they did confirm that he would be liable for half the debt. The tax office said that the other joint claimant would have received the same letters even though his EX has said she hasn't.
The tax office also said that it is possible for someone to have made both a joint and a sole claim for same period, although obviously they couldn't divulge any info.

pmlindyloo

Since you have power of attorney for your brother I suggest you take all the paperwork to somewhere like CAB (try to choose one with a debt specialist) or Christians Against Poverty (CAP - check out their website) for some help with all of this. Although StepChange are excellent my feeling is 'as below'.

You say that he is only receiving PIP. How is he paying the mortgage?

As well as sorting out his benefits they will also help with his debts. In view of his mental health issues there may be different options available for dealing with his debts (as already stated re: tax credits)

Someone needs to look at the whole picture rather than trying to sort things out bit by bit - no offence intended - you are obviously doing a wonderful job helping out - but someone (a 3rd party) needs to look at all the options and this can only be done with all the facts.

Icequeen99

I think they're wrong on the point about a joint and single claim at the same time. The system doesn't allow it and the second claim with the same National Insurance number is thrown out.

It is possible to claim for two periods that overlap - for example where backdating is given on a single claim that overlaps with the joint claim however I would be amazed if it turned out that she was claiming on a joint claim and single claim at the same time.

IQ

SnowWhiterThanWhite

pmlindyloo wrote: »

You say that he is only receiving PIP. How is he paying the mortgage?.

He was able to claim a small company pension when he hit 50

Thanks for the advice re CAB and CAP. I did actually approach CAB some months ago but, as my brother wouldn't attend the meeting, the CAB said they couldn't help (even though I had POA)

SnowWhiterThanWhite

Icequeen99 wrote: »

I think they're wrong on the point about a joint and single claim at the same time. The system doesn't allow it and the second claim with the same National Insurance number is thrown out.

It is possible to claim for two periods that overlap - for example where backdating is given on a single claim that overlaps with the joint claim however I would be amazed if it turned out that she was claiming on a joint claim and single claim at the same time.

IQ

Thanks again Icequeen - When I have my next day off I will have a good read through all the links and send a letter back with supporting evidence (copy of the PIP application & acceptance) and make reference to some of the info you have highlighted.
At the end of the day 3k outstanding is better than 6k - unfortunately, just the tip of the iceberg as far as repaying debt is concerned

Will update this thread once I received any further correspondence.

Thanks all

SnowWhiterThanWhite

Well, I finally received a response. They will not budge and insist on full repayment of 6k
They have not responded to any of my queries regarding the other debtor.
They have said that they 'accept' he didn't have capability to inform them when his Ex moved out, but that it should have fallen to her to do so?
I've just hit a stalemate.
Is it worth making a complaint? Can I even do so with no 'new' information to give.
It also grates on me when in their reply, they can't even spell me surname right and have quoted my Brothers NINO incorrectly!
Any advice?