tax credit overpayments new report published

DazzerG

There are many resaons for Overpayments and each one is the result of different circumstances.

If the declaration isnt returned, or is incomplete and there is no response to the numerous letters sent out regarding it (not to mention TV, newspaper, magazines and Radio adverts), then eventually about 8/9 months later the claim is Terminated and any monies paid to the claimant(s) are requested back (as an overpayment). This seems to be the most likely situation in Pammy14 case, and NOT that the amounts were wrong.

Another common reason is when a claim is ended, this inevitably results in an overpayment because monies would've already been paid to you beyond the entitlement period as you cant end it in advance. However any new claim is always backdated to when the old claim ended (but you never hear people moaning about the 'extra' money only about the overpayment).

The Award Notice is issued to everybody that claims Tax Credits and provides you with personal information held by HMRC to establish your entitlement. You need to check this when it is sent to you to make sure the info is accurate to ensure you are receiving the correct entitlement.....otherwise HMRC will NOT accept that you did not know that the payments were wrong.

Change of income.....is the other reason for overpayments, but this is likely to decrease significantly with the new £25000 disregard for next Tax year.

The are numerous other reasons, but the above are the most common ones.

pammy14

Well my son never received any reminders etc that why he thought everything was Ok. If they did not receive the declaration perhaps they should just stop giving them any money not let it build up to a substantial debt!

DazzerG

pammy14 wrote:

If they did not receive the declaration perhaps they should just stop giving them any money not let it build up to a substantial debt!

They do stop it, but only after giving people plenty of opportunity to return it.
The Declarations are sent out starting mid April, May and sometimes into June. You have to return it (or call the Helpline) completed with either Actual or Estimated income before 30 Sept. If estimated income is used then have a further 4 months (end of Jan) to then provide Actual income.

Once the Declaration is processed, then he/they would've received 2 Award Notices. One finalising 04/05, and the other re-assessing his entitlement for 05/06.

As I do not know the specifics behind your sons claim, then I can/am only giving general advice.

pammy14

I understand what you are saying Dazzerg but he did not receive anything in fact the claim ended in Novemeber when he and his partner separated and she had her own claim. even at this time they did not tell him that it was overpaid , so if they had not separated and the claim had continued he would probably owe £10000.00. I have helped him write letter last night and he will have to go to CAB.

Sarahsaver

I told them my partner moved in on 5 jan this year. They put 5th jan LAST year and have sent me a bill for 15k :rolleyes: which they say is due in a months time. i was in tears this morning. I have an a4 ringbinder bursting at the seams with correspondence from the tax credits office. I phoned about the supposed overpayment and that was in feb, they said they had made an error and to ignore the letter, but still they send me this effing huge bill! They said they will send me another appeals form but whoopie-do i have done so many of them already. What do i do next? Very stressed.

donnalove

my overpayment started after the renewal notice was sent back containing all correct info they messed it up, we tried to tell them to put it right they failed we kept on telling them, they failed.
but apparantly this was all down to system error as there was loads of overpayments that year they even set up a special helpline for people to ring. but although they know this they are trying to blame everyone and make them pay it back.
We obviously did know it was an overpayment but the fact is they failed to put it right, they failed to inform staff that there was errors and to tell people that they are occuring overpayments due to system error.
we were told to go ahead spend it its yours.
there are a lot of people who dont understand the tax credits and don't know whether they are overpaid or not. they cant work it out.
They should send out a breakdown of how there figures are reached like they did on the family tax credit that way more people would understand.

gibson123

Hurrah I have my tax code changed from 200L to 5035 which means I have now paid off all my overpayments. It has been a struggle and I have been paying over 1/3 of my income in deductions. I do not want to have anything else to do with the Tax credits system and will not be applying in the future even if i am entitled. And horror of horrors I will no longer be voting Labour, in spite of being a labour supporter for 22 years, I have had enough, which party is most supportive of lone parents?

aussielle

Sarahsaver wrote:

What do i do next? Very stressed.

Take all your papers to the CAB and get them to help you, I believe they are very good and very used to dealing with problems of this nature...or go and see your MP, he should run a monthly surgery somewhere locally. To find out where, have a look for the list in your local free paper or the councils website.

Dalkirst

Just a quick question on TC.On our working and child tax credits it says let them know if you are going to earn less than £9000 something and more than £12500(or thereabouts).Now i have looked at this tax year and my incapacity and my partners part time work combined came to about £11800.So will they give us some money to make it up to the 12500 or how does this work as i remember last year they sent us a cheque for about £600 saying they hadn't paid us enough TC?:)

donnalove

they are basically limits
if you go below £9000 you would be entitled to more credits
if you go above £12500 you would be entitled to less credits
but they wont make it up to that level