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Overpayment 2017 - direct earnings arrest - help!
19 replies
1.5K views
windswept2019
Forumite 5 posts
I’m new, and seeking advice!
In 2017 I had to claim child tax benefits following a separation. First time in my life, through total necessity.
It also happened to be the year my father became terminally ill, passing away on 30 July. My tax review was due on 31 July, but needless to say it was one of the things that fell by the weigh side as I cared for and said goodbye to my dad.
That August I received a letter that i owed money. I tried calling, but you know how hard they are to get in touch with?! I went to the job centre and the kind lady phoned to sort it out. She said she had, but I had no reference number ��
I became a full time student, and single mum... I didn’t claim anything as I had dad’s inheritance, until into the winter 2018/19.
Fast forward 2 years, and this August, as soon as I started earning after qualifying as a teacher I received a letter warning I had 14 days to respond or they’d start a direct earnings arrest. I instantly wrote to them (by hand, not recorded) with evidence of earnings from 2017 (£3804), challenging why they believed I’d been overpaid. No response came, but 30% of my first pay check were taken, and my second and third - I need to stop the 4th.
I referred my enquiry to CAB, who haven’t been able to find out why they’re charging me, or to stop the DEA. I have spent the past week on the phone being directed from one number to another, waiting an hour in a queue to be cut off over and over again. I work full time, so don’t have this time to spare. It’s driving me insane!
My questions are:
1. How do I actually resolve this? How can I speak to an actual person and get answers? Someone suggested an official complaint? Directed at DWP?
2. As my circumstances hadn’t changed, my earnings were £3804 for that tax year - do I have a case to appeal? Or does the fact that I failed to complete the annual review stop me having any chance?
3. How on earth do I stop them taking more out in 9 days time? If I am to give my kids any sort of Christmas I need to stop that DEA before then!
I really hope someone can advise... Many thanks if you’ve read this far! Any wise words? Cx
In 2017 I had to claim child tax benefits following a separation. First time in my life, through total necessity.
It also happened to be the year my father became terminally ill, passing away on 30 July. My tax review was due on 31 July, but needless to say it was one of the things that fell by the weigh side as I cared for and said goodbye to my dad.
That August I received a letter that i owed money. I tried calling, but you know how hard they are to get in touch with?! I went to the job centre and the kind lady phoned to sort it out. She said she had, but I had no reference number ��
I became a full time student, and single mum... I didn’t claim anything as I had dad’s inheritance, until into the winter 2018/19.
Fast forward 2 years, and this August, as soon as I started earning after qualifying as a teacher I received a letter warning I had 14 days to respond or they’d start a direct earnings arrest. I instantly wrote to them (by hand, not recorded) with evidence of earnings from 2017 (£3804), challenging why they believed I’d been overpaid. No response came, but 30% of my first pay check were taken, and my second and third - I need to stop the 4th.
I referred my enquiry to CAB, who haven’t been able to find out why they’re charging me, or to stop the DEA. I have spent the past week on the phone being directed from one number to another, waiting an hour in a queue to be cut off over and over again. I work full time, so don’t have this time to spare. It’s driving me insane!
My questions are:
1. How do I actually resolve this? How can I speak to an actual person and get answers? Someone suggested an official complaint? Directed at DWP?
2. As my circumstances hadn’t changed, my earnings were £3804 for that tax year - do I have a case to appeal? Or does the fact that I failed to complete the annual review stop me having any chance?
3. How on earth do I stop them taking more out in 9 days time? If I am to give my kids any sort of Christmas I need to stop that DEA before then!
I really hope someone can advise... Many thanks if you’ve read this far! Any wise words? Cx
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Replies
It's HMRC you need to contact regarding this and not DWP. Are you ringing HMRC? Tax credits are nothing to do with DWP.
I've no idea where to turn to, when I phone HMRC they give me a number for Universal Credit... But when I call that number it's DWP who's automated voice runs over and over again.
I guess I need to know exactly who I need to get in touch with!
Thank you for noting my total and utter confusion on this score!
https://www.advicenow.org.uk/guides/survival-guide-dealing-tax-credit-overpayments
https://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/challenging-overpayments/
Try this form:
https://www.gov.uk/government/publications/tax-credits-overpayment-tc846
"If you don’t agree with the overpayment you can ask HMRC to review it. To do this you need to contact HMRC on 0345 300 3900 or complete and return a tax credit overpayments form TC846. You’ve normally got three months to do this. HMRC can also continue to reclaim tax credit overpayments while they review your dispute."
However HMRC are likely to tell you that you are out of time to raise a dispute.
Equally you may find you are out of time to appeal, as the decision against which you needed to appeal would have been (I think) your 2017/18 tax credit final award notice. Appeals are time-limited to 13 months.
There are some knowledgeable posters here on TC who may be able to give you better advice.
You could try:
a) Raising a SAR
https://www.gov.uk/guidance/hmrc-subject-access-request
to get the info HMRC hold on your TC claim (including assumed income and letters send to / from you);
b) Getting your MP involved (this can be helpful as HMRC are sometimes difficult to deal with):
c) a complaint - https://www.litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/how-do-i-complain-about-tax-credits
I'm afraid there won't be a quick resolution.
You might also try getting the deductions reduced due to financial hardship:
https://www.gov.uk/tax-credits-overpayments/cant-afford-repayments
If you are getting UC and the deductions are being taken from UC then I think the debt will have been passed from HMRC to DWP debt management (who are almost impossible to get hold of). However DWP will have no information on how the debt arose.
If it is a direct earnings deduction I would have thought the file would still be with HMRC - but this is not an area I am familiar with so I may be wrong.
Yes, it's the debt management team I've been given a number for - 0800 916 0647 - and they are a nightmare to get in touch with.
Better to write / use the HMRC forms (i.e TC846 above) and keep all correspondence in order to fully document progress.
Be prepared for a bureaucratic fight, as (in my experience) HMRC rarely address the exact issues / questions raised. Hence getting a MP involved.
No chance of solving it for this pay day?! Should I just forget about that entirely and find a way around it?
That will complicate matters.
I understood from your OP that it was HMRC making the direct deductions from salary.
What paperwork have you had re these direct deductions, and who have sent it?
Debt management, HMRC, or DWP.
Sounds like you do need to write / contact to debt management in the first instance. You will need to be persistent, as phone waits are very long and they will try to palm you back to UC / DWP.
Any adjustment to a repayment schedule is likely now to be through debt management.
Is this any use?
https://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/770083/benefit-overpayment-recovery-guide.pdf
https://www.gov.uk/government/publications/dwp-debt-management-performance-data/dwp-debt-management-customer-service-standards