10 year old tax credit overpayment

shellbell1234

Ok so 10 years ago back when you had to send in a renewal form to say that you had received the right amount of tax credits for the previous six months, I sent mine back 2 weeks late. I then received a £2500 overpayment because of this. I disputed it and asked for a full explanation at the time which I never received. I never heard another thing and have continued to receive tax credits until September 2015 when my salary was finally high enough to take me out of tax credits. Nothing mentioned on any tax credit paperwork about the overpayment in the last 10 years. In December I get a letter saying I have not paid the overpayment!! After 10 years. I called and was told HMRC have decided to collect all overpayments, even old ones and the Limitation Act does not apply. Can this really be true? Whats really galling is that I was entitled to that tax credit. I didnt lie about my income or circumstances i was just late handing in a form. Can anything be done?

Darksparkle

After 6 years they can't take you to court.

They can still recover it though ef through PAYE, direct payments, future benefits etc.

Too late for any action now.

shellbell1234

That is just appalling. How can I be out of time when they didnt respond to me? I have just been reading other similar posts with the same responses. Has no one ever taken anything like this to Judicial review?

Darksparkle

Timescale for appeals is 30 days. Overpayment disputes, 3 months. Wasn't a timescale previously but this changed in April 2013.

Dispute would have been the correct procedure.

No idea about Judicial Review, not something I spend much time reading about to be honest.

Can you prove you disputed it at the time?

Can you prove they received it?

Do you know for a fact that they didn't respond? Or assuming they didn't because you didn't receive anything?

A SAR would answer these questions.

Personally, I wouldn't have taken a lack of response as a sign that I didn't need to repay. I'd have been calling every week until I got an answer in writing.

You could always go down the formal complaint route that you cannot take any action. I don't personally think it will help but no harm in trying. It is suggested here - http://www.revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/disputes/

shellbell1234

Thank you for that Darksparkle. What is an SAR?

Darksparkle

shellbell1234 wrote: »

Thank you for that Darksparkle. What is an SAR?

A subject access request

ab1982

shellbell1234 wrote: »

That is just appalling. How can I be out of time when they didnt respond to me? I have just been reading other similar posts with the same responses. Has no one ever taken anything like this to Judicial review?

It's annoying but not really appalling. If you were aware at the time of the overpayment then you could have kept it in a savings account and made a little profit over 10 years. Or if you spent it think of it as an interest free loan... Every cloud n that.

shellbell1234

Thats just it. There was no "overpayment". They decided i wasnt entitled to the previous six months of tax credits because i didnt send my renewal form in at the end of the award period until two weeks later. If I had been in the position where i was able to save the tax credits i had been awarded as i received them I wouldnt have made a claim for tax credits in the first place.

ab1982

Silly me I thought there was an overpayment, not sure where I got that idea.

Darksparkle

shellbell1234 wrote: »

Thats just it. There was no "overpayment". They decided i wasnt entitled to the previous six months of tax credits because i didnt send my renewal form in at the end of the award period until two weeks later. If I had been in the position where i was able to save the tax credits i had been awarded as i received them I wouldnt have made a claim for tax credits in the first place.

The renewal form does clearly state what the outcome would be if you don't complete on time.

It could have been resolved with a simple phone call within 30days of your claim being stopped.

Did you call them within 30days?

Icequeen99

Something doesn't sound quite right here.

You must have reclaimed tax credits at some point by filling in a new application form. Do you remember doing that?

Also, the renewal form wasn't about the previous 6 months (the 6 monthly awards were in working families tax credit which this tax credits system replaced in 2003).

Darksparkle is right, if it had been two weeks late, you could have renewed if you had contacted them within 30 days of the payments stopping.

Back in 2003, you had until 30 September to renew.

IQ