Can I Contest This? Tax Credits Overpayment

2

Replies

  • ok i havent been working for a couple of yrs so im guessing TC is no longer paid along side wages?
    :)
  • alison999 wrote: »
    why would they pay tc to your employer?

    This was an old system before it was paid through the bank directly to the applicant.
  • alison999alison999 Forumite
    1.8K Posts
    This was an old system before it was paid through the bank directly to the applicant.

    oh... i had no idea glad it doesnt work like that anymore!:j
  • tx2onlinetx2online Forumite
    22 Posts
    peediedj wrote: »
    how can anyone claim hardship by losing a £5 per week??:confused:

    £5 per week equals £20 per month, a substantial enough amount off of an energy bill perhaps?

    Just because YOU don't find it a hardship doesn't mean someone else on a low income wouldn't!

    :mad:
  • carolpinkdreamercarolpinkdreamer Forumite
    606 Posts
    Part of the Furniture Combo Breaker
    Forumite
    We were overpaid after I reported a change to my wages to them.
    I appealed and was told that we would have to repay it because we should have realised that it was an error:confused: .

    God knows how they expected us to know it was an error when they don't understand it either!

    I think that this reply is their basic cop out to make sure that everyone pays back their mistakes.
  • caleocaleo Forumite
    345 Posts
    Elle83 wrote: »
    Thank you, that's a good point about call centre staff so I'll try writing a letter.

    Hi

    If you call the HMRC, they will send you a form which you can use to appeal. You can then ask for an explanation of the overpayment and they will have to explain how the overpayment is made up.

    I have an overpayment from 2005 that they are chasing (I only received the basic amount, so I don't know how they came to say they overpaid???). I used the appeals form, and they were supposed to advise me by the 15th may, which they haven't. Hopefully because they have realised it must have been an error.

    Their system is complicated, and they have to clearly show you that they have overpaid you if they want to be repaid.

    I hope you manage to sort it out.
  • donnalovedonnalove Forumite
    574 Posts
    what tax credit office do not make very clear in there leaflets or what alot of peeps dont understand is that if you actually lower your income during the year you LOSE the entitlement to the disregard of 25k, so if your income is higher at the end of the year you will get an overpayment.
    this happened to us this year as i lowered my income when i lost my incapacity benefit and because of payrise hubby had( and the fact they didn't add my incapacity on total wen i rang and told them i was now claiming carers for my daughter) we eneded up 1k over estimate and have an overpayment of 400 and thats purely because i lowered my income during the year.
    i do think its unfair but then again they do need these proceedures in place else everyone would lower there income.

    so if you lowered your income during 2007-2008 then it wouldn't be worth contesting.
  • peediedjpeediedj Forumite
    1.3K Posts
    donnalove wrote: »
    what tax credit office do not make very clear in there leaflets or what alot of peeps dont understand is that if you actually lower your income during the year you LOSE the entitlement to the disregard of 25k, so if your income is higher at the end of the year you will get an overpayment
    but surely your in a no win situation? if you lower your income you lose the £25k disregard,and if you dont tell them you get penalsied for not telling them of any changes?
    Live in my shoes for a week,then tell me your lifes hard!
  • SystemSystem Forumite, Community Admin
    177.9K Posts
    10,000 Posts Photogenic Name Dropper
    Community Admin
    peediedj wrote: »
    but surely your in a no win situation? if you lower your income you lose the £25k disregard,and if you dont tell them you get penalsied for not telling them of any changes?

    If you can afford it, it is always better to leave the estimated income as it is until you complete the annual declaration at the end of the tax year. You can still advise of any change of circumstances but ask them to keep your estimated income the same. There are no penalties for doing this.

    When you then renew at the end of the tax year and advise them of decreased income they will recalculate that ended years entitlement and send you any money they owe you because of the reduction in income.
  • SuziQSuziQ Forumite
    3K Posts
    caleo wrote: »
    Hi

    If you call the HMRC, they will send you a form which you can use to appeal. You can then ask for an explanation of the overpayment and they will have to explain how the overpayment is made up.

    I have an overpayment from 2005 that they are chasing (I only received the basic amount, so I don't know how they came to say they overpaid???). I used the appeals form, and they were supposed to advise me by the 15th may, which they haven't. Hopefully because they have realised it must have been an error.

    Their system is complicated, and they have to clearly show you that they have overpaid you if they want to be repaid.

    I hope you manage to sort it out.

    Hate to say this,but I was supposed to hear by 26th Dec 2007,they haven't decided yet but deffinitely haven't let it go with us. I must say though,I fail to see how you could have been overpaid either if you only got basic!
    Tomorrow is always fresh, with no mistakes in it!
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