tax credit overpayments new report published

sarahlouise210

AP wrote:

We got overpaid by £1924.06 and they are going to take it back by reducing the weekly payment by £3.03 from 11/04/06, this is in addition to the fact that we will not be getting any more money until then. My calculation is that this is going take 12 years and 3 months for the full amount to be repaid.

If you look at it this way - an interest-free loan for £1924.06 over 12 years and 3 months at 0% APR from Gordon Brown, it can't be that bad, can it? In the meantime, I am putting this money into a mini cash ISA to earn some tax-free interest. Sometimes, you just have to look at the funny side of this whole saga!

If you still actually have the money is it worth having this debt hanging over your head for 12 years ?? Why dont you just pay it back - I know it is more tempting to have the interest in the ISA but 12 years of debt is a long time!

angus1

I am so annoyed because like everyone else, kept them fully informed of all changes. At the end of the year we were no longer entitled to WTC because of change in income, only CTC. Between us we got letters saying nearly £500 overpaid. REALLY annoying thing is that the new award says I will continue to be paid WTC (which am no longer entitled to) at the rate of £1.73 per day through my employer. When I phoned about this they said it will take a few months for their system to be able to stop these payments and i should put this money aside!! What a stupid system!

Have put in a dispute for the £500 they say we should pay them. Not sure how to convince them though that it's their fault...

DazzerG

Although the Tax Credit computer could stop WTC payments straight away, your employer cant.

Once you inform HMRC of a change in your circumstances/income that alters your WTC entitlement, they need to write to your employer to advise them of a change in rate (or even to cease payments), this cannot be done overnight and legally provides your employer 42 days to update their payroll systems to either start, stop or adjust your amount of PVE.

This process of paying WTC through the employer (PVE) is now being phased out so that payments will be made direct into your bank account/Giro.


With regard to your overpayment, did your also inform them of your new estimated income when you told them of your change in employment?

angus1

Thanks for that. Yes, did tell them of change in employment and income. Think by end of year we will be a bit over the 'maximum' amount you're allowed to earn so will have another overpayment on that..

I only work for tiny employer so they could stop it straight away - at least Tax Credits are stopping this system.

Dammam

They stopped our payments about 3 months ago - then paid £1200 into our account in 'arrears'.We then had 2 letters from the Inland Revenue (I think) saying WE owed £3100 and to pay it back immediately! Phoned them up and they eventually said that the online form had been filled in incorrectly as a new applicant rather than an update - fair enough, never happened before but mistakes happen. Not sure why they'd give me money and then take it back plus another £1900.They said to call them back the following week so they could try to sort it out.
Well, you know how it is, next week becomes next month etc. Eventually spent the money as we had had our weekly payment stopped. Now I have time to revisit this, I'll call them up again. To be honest, it has been such a pain in the backside that I wonder if it was ever worth claiming. The one year I really needed the money they didn't give me anything due to what I had earned the previous year before my redundancy. The following year I had too much etc.

homealone_2

i have just had my second appeal against £8890 turned down with the same crap excuse of they think i should have been aware i was receiving too much money. i have had an islington peoples rights officer involved when she is not on annual or sick leave but it has made little difference, three years on i am no nearer to sorting it out!!! but it doesnt look good, god knows how they will expect me to pay it back. i am since on disability benefits but my husband is working so dreading how much they will expect in monthly repayments??

Shez

I finally took my head out of the sand after avoiding wanting to deal with this but eventually thought ive got to at least send off my claim form get things on the move and then see what happens and take it from there.

Does everyone else feel the just as awful as me? and dont you just want to shove the letters in a drawer because you cant face the thought of seeing another demand for overpayment???

I really feel for everyone and hope that we can all stick together and give each other support to get through this.

Best of luck to everyone:grouphug:

ALTSEL_2

Having read through all the posts it appears to me that the Inland Revenue should be put in front of a parlimentry inquiry - heads should roll and the system seen for what it is- a joke!

aroma44

ALTSEL wrote:

Having read through all the posts it appears to me that the Inland Revenue should be put in front of a parlimentry inquiry - heads should roll and the system seen for what it is- a joke!

Couldn't put it better myself!

Have been told one year was their mistake, no need to pay it back, but next year have to pay it back, all same circumstances! Filled out the dispute forms and had two letters on same day to tell me this and stated that I was not entitled to as for this to be reconsidered! Phoned to ask why as all same circumstances....... told they didn't know. Then today I received a letter to say thank you for writing to us about recovery of TC overpayments....... I have not written!!!! Can't believe it at least there should be some continuity or is it me?

Miroslav

I've had a dreaded letter today, owing them £1200, despite telling them I wanted my claim to stop.

I have recorded delivery slips, and have been to debt counsellor, and have contacted my MP.

My debt counsellor says don't worry as it's likely to be written off, but being a depressive as it is, this is not helping.

I had to contact them over 20 times before I got acknowledgement and I have a feeling this is going to take forever to sort out