Tax credit overpayment - whats going on now?

in_debt_again_but_dealing_with_it

Just heard on the news that some people are going to have the overpayment (that they've paid back) repaid to them or the outstanding amount written off. Apparently letters have been sent to those eligible, just wondering if anyone has received a letter - I haven't and am still paying back my overpayment!!!

Seaxwyn

That's really interesting. I haven't heard anything and am still paying back a large overpayment. Please do post here if you hear any more.

in_debt_again_but_dealing_with_it

Just looked on the BBC site, nothing on there. It was headlined on GMTV this morning but nothing on their website either!

little_2

Hi

We got a letter on Saturday stating that they are going to look into our claims for the years concerned, it states they are looking into some cases. Fingers crossed they fix their disasterous mistakes and do something about their mistakes to us!!!

keith_lard

taken from here
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/09/03/ntaxcred103.xml
£500m tax credits could be written off


By Brendan Carlin, Political Correspondent

Last Updated: 2:34am BST 03/09/2007





Up to £500 million in overpaid tax credits could have to be written off or even repaid by the Government because officials trying to recoup the money failed to follow correct procedures.
Labour's flagship tax credit system has been mired in controversy since it emerged that millions of pounds had been paid in error.

But in a major new setback last night, HM Revenue and Customs was forced to admit that overpayments to tens of thousands of households could have to be written off.

One estimate suggests up to 250,000 cases are involved, although HMRC insists 90,000 of those can be rectified.
A Revenue and Customs spokesman confirmed that recovery officials failed to abide by section 18 of the Tax Credit Act 2002 by not notifying the individuals involved that they were reviewing their tax credit payments.
"That was the procedure we should have followed and we did not do it," he said.
The disclosure raises the embarrassing prospect of money being sent back to claimants who were never entitled to it in the first place.
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The HMRC would last night not put a fugure on the potential losses.
But one Revenue and Customs insider, who leaked details of the fiasco to the Tories, claimed that £500 million of taxpayers' money could now be lost plus £200 million worth of officials' time just to sort out the mess.
And last night, George Osborne, the shadow chancellor, called for an investigation into the entire tax credits regime - seen by Labour as one of the main achievements of Gordon Brown's 10 years as Chancellor.
Mr Osborne also sought to make sure that the Prime Minister could not dodge responsibility for the problem.
"Look at the small print and you will see that this latest tax credits fiasco happened on Gordon Brown's watch," he said.
The true scale of the crisis came to light after a Revenue and Customs insider contacted the Tories, who yesterday published the whistleblower's note.
It said: "Numbers are still not clear, but in essence, the issue is that hundreds of thousands of the claw-back operations conducted by HMRC to recover overpayments (overpayments made by their faulty IT and systems) were conducted 'ultra vires' [beyond its powers]."
The whistleblower added: "The money will now have to be repaid to claimants (circa half a billion pounds). It will take 4,000 to 6,000 man years of effort (spread over three years) at HMRC to sort this out. This in itself will cost £200 million."
The first hint of a problem emerged in a barely-noticed written statement from Jane Kennedy, a Treasury minister, just before the Commons rose for the summer recess.
She revealed that HMRC had "identified an administrative problem with a number of older tax credit awards". But the statement made no mention that a huge amount of taxpayers' money could now be lost.
The whistleblower told the Tories: "Everyone at HM Treasury/HMRC are congratulating themselves that the announcement was unnoticed."
In a statement, the HMRC said: "This is an administrative issue, affecting a small proportion of older tax credit awards which were revised in the light of new information after the award had been finalised."

immoral_angeluk

No letter for us.. but we only owe them about £150 ....

Fairyfield

Will be keeping a close look at this forum for info'.

I was contacted by the tax people about being overpaid £1000+ in family tax credit for period 03-04, which I repaid.

How would I go about checking if this repayment could be returned?

mrsspendalot

I had about £3500 written off a few years ago when the system first changed from WFTC to WTC/CTC because they messed up with the claim and didn't send us any notification letters out for months and months so we didnt know there was anything wrong with the amount we were receiving.

in_debt_again_but_dealing_with_it

I've been repaying since the error found - but no letter for me - so I guess it won't apply. I can't recall ever receiving a letter about overpayment it was just included in my annual statement.

amani_2

since 2003 ive paid back £4.600 over the years until this year. I've also not had a letter, but my mum had one on Saturday. I have never had a letter about overpayment just included in my annual statment.

in_debt_again_but_dealing_with_it

Very curious, I wonder what the criteria is for refund entitlement - MSE Martin if you're watching perhaps you could check it out .. please!!!