Tax credit overpayment

lucylockettt

Hey,

In January 2016 the town where my business is flooded really bad, washing out the whole place. My shop was closed for 4 months and I relocated. I started getting tax credits because I was more or less unemployed for 4 months as well as forking out for a whole refurb on my shop. In July I put through my income to the tax credit office, they ask for a 'estimate' my accountant usually does this so I tried to do it myself - I am useless at this!

I received a letter from the tax office saying I owe a years and a half worth of tax credits which was £2,500. I spoke to my accountant and he realised I had missed out a massive chunk of outgoings on my income... the whole reason I pay for my accountant is because of this! so I called up the tax office and they said it was far too late to make changes to my income. They told me I have to start paying these tax credit overpayments back because I could get fined... so we agreed on £115 per month for 2 years... which if I'm honest is a struggle (I've had to set up monthly instalments to pay my tax already)

My accountant called up the tax office to try and explain to them how I got it wrong and they said they would contact me, I haven't had any letters or phone calls. so now its getting to 31st of jan when they have my actual income and I called to ask and they said nothing can be changed at all but I can dispute it.

Ive sent through a dispute but I'm confused as to what extra evidence I can send???

Ive also called up so many times and I have to explain the same story that I'm just not getting anywhere

I've had a mix up with dates and numbers but I feel I need some understanding. This is the first year I've payed tax as I have been recovering from the floods and tbh I'm really glad I'm finally earning proper money..... but this has kinda brought me back to square one and my little shop is struggling.

someone please shed some light !

Darksparkle

What year are you referring to? Your income for 2015/16 tax year? Or 2016/17?

Icequeen99

If you are talking about the 16/17 income - then a dispute is not the right thing to do, you need to submit an appeal. But it is likely to be a late appeal and they may not accept it. A dispute is unlikely to get anywhere.

I assume that when the figure was given you didn't give it as an estimate, if you had you could give them the actual by 31st Jan?

IQ