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tax credit overpayments new report published

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  • we have just recieved 2 bills for overpayment, one is for £3000 plus and the other is for over £1000, i am so worried now as there is only my husband working. why did they send us this money if it is not what we should be getting,we gave them all the information they asked for,told the truth about all our income , which didnt take long, and they still awarded us this money and now they expect us to pay it back, i have an appointment with the c a b tomorrow but i am now really scared about how we are going to pay it back,if any one else is about to apply for this tax credit i advise them to think long and hard before they do
  • Surely you can appeal if it is their mistake? Do you know how it arose? I don't think they can make you pay them back - they will have to collect it from your future payments.
  • Bizzy_2
    Bizzy_2 Posts: 11 Forumite
    Since Jan 06 we have received £10,160.83 in tax credit from HMCR, we completed all forms, and just after that when our youngest went in to paid childcare and our wages changed I wrote a detailed letter spelling out wages and child care cost.
    They now work out on top of this I am owed £768.00 per month until April and then £42.00 per month from April 07?
    I have spoken to them on the phone and said it SEEMS a little high and are you sure this is correct,"yes" they say.
    Well I have not spent a penny of it and have put it in to a savings account because I know before too long the penny will drop with someone.

    PS My wife and I both work for HMCR.
  • My parents have just got an overpayement bill of £1500 for 2004/2005-well there abouts. My mom phoned up today to see if she could pay it off over time and says they want at least £30 a week, which my parents cannot afford-at all, we're already on the breadline now. they didn't get any tax payments last time or this year. my dad gets about £270 a week-but that's with overtime and my mom only gets £50 a week. me and my brother are unemployed and on JSA, but are actively seeking work, i've been out of work for about 3 months now, and really need to get a job to help them out. Anyway they told my mom to make a list of all outgoings, so they could then see if they can drop repayements to less than £30 a week, though even £10 or £15 a week will be a struggle. has anyone got any advice in getting your repayments dropped or even half written off or something. what are the things they'll need to know or take into account.
    Halifax-Limit-£500-Balance-£0
    Halifax-Limit-£500-Balance-£127
    Virgin-Limit-£500-Balance-£0
    Thomas Cook-Limit-£1100-Balance-£0 Play-Limit-£1000-Balance-£358
  • Are they deducting it from current payments, then? If not, I'd just tell them what the family could realistically afford, and they could take it or leave it.
    If they're deducting it, I'm afraid I don't have any experience of getting them to reconsider the rate at which it should be paid back. Your local CAB can probably help, since they're used to helping people negotiate payment terms with various organisations if they're being asked to repay debts at a rate they simply can't afford.
    Do your parents believe the overpayment figure to be plausible? If it sounds excessive, they should query it, since the calculated overpayment may be wrong in the first place.
    I allegedly still owe them about £1500 for a supposed overpayment of child tax credit, which was based on the correct information (even if it was the previous year's): I still have one child under 16 living at home. According to the IR, the fact that they allegedly didn't receive my annual review form renders any payment based on previous information invalid!
    The good news is that I've finally got my CTC reinstated after months of getting messed about. I hope they don't start taking deductions without warning just when I start getting used to being less skint.
    Now to pay the bills which have been accumulating while my payments were stopped...
  • I was overpaid by the child tax credit department to the tune of £318. (This is because I had refused to keep filling in their forms as I did not feel comfortable asking my girl friend at the time for proof of her earnings and I did not need the money coupled with the fact that their system could not stop paying me!). I made arangements with them to pay it back at £26.50 per month for 12 months. Due to an error by my bank the August payment of £26.50 was not made (bank cancelled standing order for no apparent reason). I did not receive any correspondence from the Revenue, no telephone call but they did send a scruffy young chap around from their recovery team demanding payment on 6th September 2006 (my girlfriend thought he was a conman and very firmly told him to go away and don't bother trying to con us again:rotfl: ). He then handed her a letter.

    When this chap had left read the letter and checked our bank account and saw that the August payment had not been made so we made arrangements with the bank to pay the outstanding amount imediately and to ensure future payments would be made without problem.

    I called the Revenue to discuss the matter and explain what had happened and suggested they write to me before sending their recovery team they said they had written a letter and posted it on 4th September 2006 but I had to inform them that it usually takes little longer than 2 days for letters to get anywhere with Royal Mail (just incase they were not aware of this fact). As of today their original letter has still not surfaced so I doubt they had posted in the first place.

    I did get a verbal apology from the Revenue and they did admit this visit by the recovery team should not have happened. I pointed out to them that I pay my tax on account (6 months in advance) and had actually paid tax on earnings that I had not received yet and they had much more of my money than I had of theirs.

    If the Revenue go to these extremes for £26.50 goodness only knows what they would do if I owed them £50? They might then send an elite battalion of soldiers to get me:eek:
  • jen30_2
    jen30_2 Posts: 180 Forumite
    I have just recieved a letter say I owe 1738.79.:eek: I phoned up the helpline and was told it dated back to 2004/05 and that originally the overpayment was 4000:eek: . They said they'd claimed back over 1400 but now wanted the rest back. I told them that whenever a change in circumstances had occured I phoned them so the man told me to fill out a disputes form. I've read in the news recently that most of the time the disputes are not won. I don't know what to do. I am now not getting any ctc until at least april next year.
    Keep Calm:cool: Smile :D , Enjoy!:dance:

    Lightbulb moment 03.08.06

    :eek: Debt Free by January 2010:eek:
  • What do I do next as I have filled in the the dispute forms...received a reply to say my dispute had being denied.

    Now a new letter has come to say they expect a reply from me in reponse to the dispute denial by the 25th of Sept.

    Can someone tell me what they expect me to say in the letter as I am already fed up with the HRMC........
  • Write to your MP with a copy of the letter from dispute team and ask him or her to refer you to the Ombudsman. There is no other way to get a response - add your name to the petition on line and good luck

    http://www.taxcreditoverpayment.pwp.blueyonder.co.uk
    :confused:
  • hazzie123
    hazzie123 Posts: 2,755 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    I was overpaid by £330 dating back from 2004,but was only told of this,this year.Why cant they tell you earlier? Anyway I phoned them and asked to have it paid to them by Direct Debit.I have phoned them twice now and still they haven`t sent me out the DD forms to fill in.

    Do I leave it till they contact me about it or should I yet again waste more time by phoning them to see if one finally gets sent out to me?

    Do they charge you interest on the money you owe if you dont pay it straight away?
    Debt Free Date:10/09/2007 :j :money:
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