Working Tac credits -overpayment

auddel_2

Hope someone can advise me. My husband and I have been claiming working tax credits 2007-2008. From April to end of May my husband was in a paid job, however from June 2007 he decided to go self-employed, we did inform inland revenue. We did not know if this was going to work out and I guess I kept putting of telling Tax credits he was now self employed (my fault, I know). However in January 2008 the tax office wanted an estimate of his income and I phoned them and told them it was expected to be about £6000 for the complete year and that my hubby was now self employed. The girl took down all the details and my tax credits were actually increased by £10 per week. Two weeks ago I phoned the tax office with an update of my hubbys income which was only £4250 for the year. And then all hell brooke loose- she claimed they did not know that my hubby was self employed (although they did as our payments increased) and that I owe £3450 for the year. I explained everything to her and she said tax credits can only be backdated 90 days which would bring me roughly to end of December 2007 and I will still owe all the money from June 2007 to December. I told her I had informed them in January and if the 90 days are taken into account that would bring me back to roughly sept/oct 2007, which means I would owe 4 months tax back - which would not be too bad. I realise I should have informed them straight away but my husbands income actually decreased over the year not increased and if anything, I saved them money (well, thats what I think lol). Any suggestions

System

You need to make an appointment at your local HMRC enquiry centre. The staff there can check all the details on your claim whilst you are sitting with them and make corrections if necessary.

You can also make a "Subject Access Request" under the Data Protection Act and you will receive a CD of all your phone calls and copies of all correspondence.

auddel_2

Pam17 wrote: »

You need to make an appointment at your local HMRC enquiry centre. The staff there can check all the details on your claim whilst you are sitting with them and make corrections if necessary.

You can also make a "Subject Access Request" under the Data Protection Act and you will receive a CD of all your phone calls and copies of all correspondence.

Many thanks for that. I actually phoned them again tonight as I searched all my award notices and all the leaflets online - the ones which state which circumstances you MUST inform of - and nowhere does it state that you must tell them if you change jobs or go self employed. It obviously does say you MUST inform of change in wages or hours or if it is joint claim and you now separated etc, but not if you change jobs. I have a dispute form now so will also fill it in.

System

http://www.hmrc.gov.uk/taxcredits/changeofcircumstances.htm

Print this off and take that with you to show that per the HMRC website you were not required to advise of anything other than a change in hours or income.

It sounds to me as if the overpayment has occurred because when the last person in the contact centre made a change to your record it affected the "employment history start and include from" dates. This may have created a gap in your employment history meaning that WTC was only included in your calculation for part of the year.

auddel_2

Pam17 wrote: »

http://www.hmrc.gov.uk/taxcredits/changeofcircumstances.htm

Print this off and take that with you to show that per the HMRC website you were not required to advise of anything other than a change in hours or income.

It sounds to me as if the overpayment has occurred because when the last person in the contact centre made a change to your record it affected the "employment history start and include from" dates. This may have created a gap in your employment history meaning that WTC was only included in your calculation for part of the year.

Many thanks Pam17 - I have printed it of and will include it with my dispute form.

hotblu

Hello auddell,

I think what has happend is when you first called only your income was changed, but no change to employer details (they are seperate screens). You have now called to update figures and advisor has picked up on this and made the necessary changes. They will have ended your partners employed details as of date finished and put in the start date for s/e, but as they have only done this now, it will backdate max of 93 days therefore any WTC paid to your husband between start date of s/e and Decemebr 2007 (maximum backdate, will be overpaid). I appreciate you are not happy with o/p, but part of making a claim for ctc/wtc is to keep it up to date. You would have been sent an award notice in January when you made the change to income and on their it would have still shown your partner as employed not s/e and it would have included a checklist for you to go through to make sure everything is correct. On the checklist it states you have to call if any change to employer details. I think it will be very difficult to have dispute over turned as you delayed in notify TC and even if TC where at fault for not updating in January, they wrote to you and you didn't advise of any errors.
Also, by all means go to an HMRC office, but they are not trained in TC, and will just tell you to go to the free phones to phone TC helpline. Good luck with it.

HTH

Hotblu

auddel_2

Thankyou Hotblu. I have checked my award notice from January and it does not have any employment as in self employment etc on it- The one I recieved after my telephone call in March which highlighted the fact that my hubby's employment details had changed does list his wages from employment and his wages from self employment from June 2007. However, it only states to tell them if any changes to actual amount of income. MY husband has changed jobs before when getting working tax credit and I have never had this problem albeit he never went self employe. My argument is that no where on the offical website, leaflets or award notices does it state that you must tell them if you change jobs just if your income goes up or down or people leave your home etc. I can only hope that I do not have to pay it all back

hotblu

auddel wrote: »

Thankyou Hotblu. I have checked my award notice from January and it does not have any employment as in self employment etc on it- The one I recieved after my telephone call in March which highlighted the fact that my hubby's employment details had changed does list his wages from employment and his wages from self employment from June 2007. However, it only states to tell them if any changes to actual amount of income. MY husband has changed jobs before when getting working tax credit and I have never had this problem albeit he never went self employe. My argument is that no where on the offical website, leaflets or award notices does it state that you must tell them if you change jobs just if your income goes up or down or people leave your home etc. I can only hope that I do not have to pay it all back

I don't have any of the correspondence to hand (for example award notices, checklist etc) but as far as I know it is written that you must inform of all changes. The annoying thing ishe did work and was therefore entitled to WTC. To be honest it depends on the adviser you get on the phone, some will just over ride the pre populated maximum backdate and just enter the correct one, but I know TCO have been taking a hardline as all changes have to be reported within a month now. I wish you the best of luck with it.

Hotblu

System

hotblu wrote: »

Hello auddell,
Also, by all means go to an HMRC office, but they are not trained in TC, and will just tell you to go to the free phones to phone TC helpline. Good luck with it.

HTH

Hotblu

Sorry Hotblu but that's not entirely true the staff in Enquiry centres come from a variety of backgrounds within HMRC. I myself, before getting my position in an enquiry centre, have worked in PAYE, SA, Employers section and the TCO. In that last position I dealt with both change of circumstances and disputed overpayments. This variety of experience was the reason I got my job. My colleagues have a similar breadth of experience.

When a customer comes into the EC for an appointment we do not send them to the phone but rather set them down and look at their claim whilst they are there and action coc's and/or corrections as necessary. More technical queries are dealt with via the various referral systems available to us.