HMRC making a deduction from my tax-free income due to benefits I do not receive!

Hi all,

I appear to be spending most of my waking hours on the phone to HMRC and DWP to resolve an issue whereby £6105 is being deducted from my £12570 tax-free allowance.  HMRC believe this is due to DWP advising them of a DWP benefit I am in receipt of (I am not in receipt of any).  However when calling DWP to make a general query about this situation, I hit a brick wall after waiting the best part of an hour for each call.  

I am wondering if anyone else here has been in a similar situation, and if so, how did they manage to get the situation resolved with DWP?  

I am at the end of my tether with this one, so any help anyone could give would be much appreciated!  

Comments

  • eskbanker
    eskbanker Posts: 29,799
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    Are you able to access your online personal tax account and adjust/correct your income sources there?
  • eskbanker said:
    Are you able to access your online personal tax account and adjust/correct your income sources there?
    I have accessed my personal tax account but it gives me no visibility of these fictitious DWP benefits I am apparently claiming.  The figures they have for my income are all correct, but their tax code is wrong, and I cannot alter that.  
  • molerat
    molerat Posts: 31,504
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    edited 4 December 2023 at 12:50PM
    Your on line account must show what is being deducted from your allowance as well as "Your income from other sources"
  • molerat said:
    Your on line account must show what is being deducted from your allowance as well as "Your income from other sources"
    It does - against the deduction is states 'State Pension' (which I am not old enough to access yet).  When I spoke to HMRC about this, they told me that although it states 'State Pension' they believe it is due to a DWP benefit that I am apparently claiming.  No income from any other sources... 
  • This also happened to my wife - a mysterious DWP payment deducted from her personal allowance. She has never claimed DWP. I just removed it from her personal account and her code reverted to what it was. 

    I couldn’t be bothered contacting either organisation- but I will if the deduction reappears.
  • xylophone
    xylophone Posts: 43,809
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    Taxable state benefits here

    https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

    I can't for the life of me see how anybody would be unaware that he is claiming one of them unless  incapable of managing his own affairs so a claim managed on his behalf.

    This being the case, the likely answer is that an inputting error  has been made at DWP and you are deemed to be receiving a benefit which is actually being claimed by somebody else?

    HMRC are simply acting on information supplied by DWP as they do when a person becomes entitled to SP.

    Clearly you do not want this to continue  - if you cannot get through to DWP you could try your MP.

    Or you can make a formal complaint in writing.

    General complaints about the Department for Work and Pensions (DWP)

    If you have a general complaint about the Department for Work and Pensions itself which is not related to service you have received, write to:

    DWP Complaints
    Post Handling Site B
    Wolverhampton
    WV99 2GY

  • Well, I've just come back from my local JobCentre Plus offices to speak to someone face-to-face (always helps especially when you try to call and you get cut off after waiting for 1hr 30).  They have confirmed in their system that I am in receipt of no benefits, so the focus appears to be now on the State Pensions Dept.  At least HMRC have now told me they have removed the erroneous deduction (for the time being anyway).  

    Now crossing fingers that I don't see a repeat of this!  

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