Claiming Tax Credits

DHDEBTS

My husband and I claim jointly. Following an accident at work he now receives Industrial Injuries Benefit and a Disability allowance. I have in the past put down all of his Industrial Injury Benefit - as advised by phone. This was in 2004. I have now been advised that the first 28 weeks doesn't count and shouldn't be included. :mad: According to the Tax Credits people we have been overpaid by about 5k. :mad: I'm in the process of renewing for this year does anyone know do I as I suspect now deduct the first 28 weeks of Industrial Injury Benefit?.

It has also been suggested by someone at work that I put in an appeal over the overpayment but as the original mistake happened in 2004 and was advised over the phone I'm not sure I'll have any success as it is well over 3 months (obviosuly) since the mistake was made and I don't know the exact details of when I phoned as it was so long ago. Do I just plod on and try and pay it back bit by bit every year or do I have a hope making a claim.

System

As far as I'm aware Industrial Injuries Benefit and DLA are non-taxable
http://www.hmrc.gov.uk/manuals/eimanual/EIM76100.htm
and so you should not have to give TCO any figure for the annual renewal. Receipt of Industrial Injuries benefit and DLA serve to support your claim that your husband is disabled.

The 28 week deduction refers to Incapacity benefit (IB) which is taxable and only the first 28 weeks that IB is received. See page 22 of your renewal pack guide for details of the taxable benefits that have to be declared on your renewal form. http://www.hmrc.gov.uk/forms/tc603rd-notes.pdf

If you think you have been misinformed regarding what income you should have declared in previous years then you can dispute the overpayment and ask them to correct the information.