Child/Working Tax Credits - Joint to Single Claim - Now overpaid

darren72

I am writing on behalf of a friend who is unsure what can be done in the following situation - Any help appreciated.

Her and her husband were receiving Child tax credits and working tax credits as a couple. He abandoned her and the children and these payments have been continuing from HMRC.

She realised many months later that she should have informed HMRC of the change of circumstances (which she did) and put in a new single claim (rather than joint claim).

The problem is that HMRC want the amounts from the joint claim paying back from the date he left, but will not backdate the single claim to this date (even though they would have cancelled each other out). The result is a bill of around £5,000.

Does anyone know if this can be challenged with HMRC ? - We know now that she should have informed them within 1 month of the change of circumstances, but as her husband had always dealt with all the finances and the stressful situation she was in it wasn't something she had even considered.

Thanks in advance

Darksparkle

See here - http://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-living-together/#Notional%20Offsetting

darren72

Thank you very much - That is really appreciated. I will look into that and see what can be done.

Icequeen99

Was the separation permanent at the point he left?

If it was temporary at that point then they would still be classed as a couple.

You may also want to look at something called notional offsetting.

IQ

Darksparkle

Icequeen99 wrote: »

You may also want to look at something called notional offsetting.

IQ

That's what I've posted the link to.

konark

Yes, this looks like a case for 'Notional Offsetting', it surprises me that HMRC haven't referred this case themselves to the offsetting team as it meets all the criteria, God knows why they raise these scary invoices and leave you to ask for it.