10 year old tax credit overpayment

mel48rose

ab1982 wrote: »

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

:rotfl: :rotfl:

shellbell1234

To icequeen

You are quite right something is not right. My renewal form was completed about 2 weeks late and my tax credits carried on for the next ten years (renewal form completed on time each year after that). The "overpayment" of £2500 is for the whole period (April to September) prior to the renewal form date. HMRC said as I didnt renew on time I have to pay back everything I have already had. I guess thats why I feel so mad about it as I was legitimately entitled to the tax credits. If you complete a tax return late you are fined £100. back then if you returned a tax credit renewal form late you had to pay back what you had already received! I note however that this has now changed and the procedure is - when you receive a renewal form you do nothing and your tax credits continue!!!!!

I have sent a written appeal and official complaint though reading some of the other threads I am losing heart that anything will happen.

To add insult to injury, after 10 years of no contact about it and even though I have appealed and complained, I have just received a bailiff letter.

Darksparkle

shellbell1234 wrote: »

I note however that this has now changed and the procedure is - when you receive a renewal form you do nothing and your tax credits continue!!!!!

Not entirely true. There are two types of renewals, reply required and auto renewal.

As the name suggests, reply required renewals require a reply. The deadline is currently 31st July. If you don't reply then you are overpaid all from April unless you call within 30 days to restore the claim. After 30days, there are some exceptions eg if you have good cause for not replying on time.

If you have an auto renewal, the renewal for will explain if and when you need to reply eg someone on Income Supoort year on year generally doesn't need to reply if nothing has changed. Recently, RTI has allowed them to do this with some people who only have employed income/pensions.

The reply required/auto renewal process has been in place since at least 2006. The deadline has changed over the years though.