Got in from work last night to find a nice letter from the Inland Revenue to say that we were overpaid by nearly £3,000 pound working tax credit in 2004, and they would like it payed back to them by February 1st or they will be taking me to court. I have received no letter off them since 2004 saying anything about this amount being overpaid to us, what the hell do I do.
I think this tax credit scheme brought in by Gordan Brown as been nothing but a rip off He gives it you one year and then the next demands it back, it is nothing but a vote pulling scam.
Think you go to CAB in the morning, Richard.
An' you can ofer to pay back at a fiver a month....nah, try a pound.. ;D
That's truly appalling Richard. Unbelievable. Maladministration of tax credits has been a longstanding horror story, with no visible accountability. I wonder if there's a pressure group or class action by now? Can only say my thoughts are with you, and good luck with the inevitable fight :-\
Hi RK, i'd ask for some advice too. It's simply not acceptable for them to wait 3 years to remember that they've paid you too much, then demand it back within a matter of days. I'm sure after you've been to the CAB, a solicitor would be a good port of call for some advice too. IF they make you pay it back, then make sure it's a small amount each month that you can afford to spare, it's their fault for c*cking it up in the first place, so don't see yourself short. Good luck x
and CAB have solicitors.
Richard I've just googled "over-payment of tax credits"
Have a look - loads to read there 8)
Thank you all for your replies, just looking at google now Alishka thank you very much, my wife was in pieces last night as some of you know from a previous post that we are going on holiday this September for the first time in 10 years and the first thing the wife thought was that now we will not be able to, just again I am so thankfull to you all for your replies.
Nihil Illegitimus carburundum.... or some such dog-latin...
;D
>:( Poor you. Poor your wife.
I second (third? fourth?) Alishka: CAB's definitely got to be your first stop: they're strong critics of the whole system.
But you are so not alone. The BBC has been reporting on this fiasco and the hurt it's causing for ages:
http://news.bbc.co.uk/1/hi/business/4939186.stm
and has an online Q&A page which may offer you some guidance:
http://news.bbc.co.uk/1/hi/business/5032876.stm
plus a section on 'dealing with tax credit overpayments' by an eminently qualified author:
http://news.bbc.co.uk/1/hi/business/4119028.stm
Hellfire. What a shower they are: what a bunch of incompetent, arrogant bullies.
Is there a statute of limitations for demanding re-payment? I would suggest this is unreasonable behaviour designed to cause mental cruelty and not to mention disciminatory victimisation (only if you voted Tory). Get as much legal help that you can - remember to apply for Legal Aid - and fight back.
Very sorry state of affairs and you have my simpathies and soapbox. Hope this won't damage your holiday or your (collective) health.
Best of luck mate. ;)
Let us know how you get on. Our thoughts are with you
It seems so unfair :( >:(I wish you all the best and agree that you should get advise
thoughts are with you and do keep us posted
That's really bad news Richard. With everyone else on going to CAB for some advice.
Think back, between tax years2003/04 2004/5 and 05/06 did your circumstances change? do you complete a tax return? and keep copies?? if so, dig them out and have a look at what information you supplied - make sure that you put the right figure in the right box
The whole tax credit system is a nightmare. I know it is easier to say than do, but when talking to the Revenue stay calm and logical, get them to explain to you how the overpayment arose.
Good luck, remember to breath and don't let go of the holiday for anything......
Richard, so sorry to hear your news what a shock you & your wife have had. Offer to pay them £4 a month they cannot refuse to accept on offer of repayment just be as cussed as they are, how dare they demand instant payment for there bl**dy mistake. All the best good luck Mary. ;D
This is typical; they've been taking money back off us for years. Every year it was just another demand. The whole system is just rubbish.
Scare tactics, They send you an over the top bill, this ensures you get in touch pdq.
Then when they have grilled you fo an hour or two, they say 'sorry sir our mistake'
This is the way they try to trap people that are cheating on their taxes, because with them you are guilty until you can prove you're innocence.
Believe me, I've been there.
A work colleague was in the same situation to £5k and apparently the baliffs were being sent this week as she had not been in contact since 2004 when they had apparently sent lots of letters.
She phoned them - it was overpayment but was an error on their reading of the original form and as it was so long ago they said they would probably not try to recover the money. Oh and the baliffs were not coming - that was just to make her get in touch - oh and they hadn't sent any previous letters.
Nice people eh!!!
That's so scary. I get tax credits and can't figure out the system at all. I've been overpaid in the past (but not enough for them to claim it back) but then still qualify for credits this year? (though much smaller) I really don't understand their logic - surely if they'd overpaid me in the previous year they'd collect that back from the present year and nullify what was due to me.
I hate to complain because I can use the extra pence but when I get a tax credit update showing me what they'll pay me at the same time I get my self assessment tax due statement it does make the mind boggle. ::)
I'm going to read some of those links just in case I need them later.
Tina.
Just think of that lovely "payroll vote" Gordon has achieved by adding all those bureaucrats >:(
Sorry - that was a bit off message.
One important thing to be aware of is that, if you can't reach an agreement with HMRC .....
"You must make your appeal within 30 days of the date shown on the decision notice. This time limit may be extended but you must provide grounds for admitting a late appeal."
Barnowl,
QuoteJust 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.
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
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.
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.
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".
Thinking of you and your wife, Richard.......let us know how things are sorting, won't you?
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!
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
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
Quote from: theothermarg on February 07, 2007, 21:02:53
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....