Topic: Tax Demand

[Amazin]

Barnowl,

Just think of that lovely "payroll vote" Gordon has achieved by adding all those bureaucrats

Oh no, he hasn't... and nor have any of his cronies either.

[angle shades]

I've had a letter from revenue and customs today saying i owe a years worth of national insurance contributions :o

guess the year? yes  2004.

I've enquired at work and found out revenue and customs are having a computer update, and people all over the country are getting these letters and not no worry there has been a thingy up :-\

btw I didn't type thingy :P /  shades x

[Marymary]

Poor you - it is an awful lot of money which obviously you can't afford or you wouldn't be getting tax credits in the first place.  I know this has happened to lots of people in the last few years.

It might still be a mistake.  I had a letter saying I owed a whole year's national insurance & then my partner got one & then my daughter.  Eventually we each got a letter saying it was a mistake. 

I agree hang on to that holiday at all costs. Good lusk & let us know how you get on.

[grawrc]

Richard I don't think they can ask you for money at such short notice. You can have time to pay (if you really do owe that much). Keep copies of all correspondence. Get advice - CAB is great but here there's a long waiting list for appointments. I would suggest writing and saying that if you do owe the money you will be happy to repay it over time, ask them for a breakdown of figures explaining what and why you owe and get a CAB appointment. Take all that to CAB and get their help. I'm pretty sure that if you say you are willing to pay (no matter how little) they are obliged by law to accept that. Good luck!Try not to worry. They get it wrong all the time.

[Curryandchips]

Message passed on from Yellow Petals ...

What can I do if I have been overpaid tax credit?
The government says you will not be forced to repay money if the overpayment was the fault of HM Revenue and Customs as long as it was "reasonable for the customer to think their payments were right."
If your income in the tax year in question was less than the estimate on which your tax credits were based, the HMRC will normally pay you the difference.
If the income is greater - but the difference is £25,000 or less - since April this year the HMRC will not claim back any tax credits. For changes before 1 April 2006 much stricter rules applied, with income changes of just £2,500 resulting claims from the HMRC.
If the difference is greater than this, however, then you will be expected to pay some back, probably over a period of time.
If you think that the overpayment was caused because HMRC made a mistake in calculating your entitlement, then you have the right to have the entitlement decision looked at again by an independent tribunal.
Contact the HMRC and ask for Form TC846: "Request to reconsider recovery of tax credits".

[Hyacinth]

Thinking of you and your wife, Richard.......let us know how things are sorting, won't you?

[Trixiebelle]

Tax credit is fine - it's a LOVELY political sentiment.

But asking people to predict their income for the next 12 months and calculate their own tax credit payments is a JOKE!

It's stressful, it's a tentative calculation based on nothing in particular & it's just not a viable/workable option for individuals and the people trying to work it out in the tax office.

No wonder people end up being owed money and other people end up owing money: It's the most innefficient way of collecting taxes (and giving people tax benefits) I have EVER encountered!

[LauraB]

Richard, it it's any consolation, we've had exactly the same letter this morning. It's for £2900 dating back to 2004 - and having telephoned them, it's not a mistake.

The worst of it is, we haven't even been overpaid. They are demanding repayment because they have lost a piece of paperwork (the annual declaration) and despite having thought we had resolved this in 2005, they are saying that without the annual declaration they are cancelling our entitlement for that year and we need to repay the money immediately.

This site is excellent for advice;
http://www.taxcreditoverpayment.pwp.blueyonder.co.uk/3.html?submenu=2

and also contact the CAB and your MP.

There are literally thousands of people in this situation.

Good luck x

[theothermarg]

it,s so scary, the way they do things. when i first applied they wanted to know how much DH,s incompacity benifit was 2yr,s previously ,on asking the DSS they said as he had been on it before it was taxable we didn,t have to say, this turned out to be the case . i work 32 hrs a week on low wages but get around £50 a week tax credit because of a loophole in a crazy system!  i,m terrified they will change their mind and ask for it back. the sensible thing to have done is to save it
i,m afraid i,m not that strong willed. i will lose it this year as i become a OAP

[SMP1704]

i will lose it this year as i become a OAP

Check that - I think the age discrimination regulations mean that you have another 5 years worth....