Unusual Tax Credit Overpayment

Penny1969 · 9th November 2007, 20:15

Hi Guys,

I do hope you can help? I have looked through several threads to see if I can find anything as straightforward as mine!

We received an "overpayment" demand 18 months ago. The demand was for the whole years tax credit award, the reason we owe them it ........ because we didn't return the annual declaration (we didn't retrun it because we believed we were no longer entitled)?

Without going into unnecessary detail, we appealed, it was rejected. My only grounds for appeal were:-

1. How can it be an overpayment if we were entitled to it? Surely this is a most inappropriate word to use in our case?
2. There was no indication on the declaration that they would take money off you that you were entitled to?

Over the next year we received another demand, then 2 weeks ago we had a letter from a debt collection agency looking to recover the money before it became a court case.

The debt collection agency were very understanding, admitting the system was a farce and we should count overselves lucky we didn't owe several thousand!

Could someone please give me advice where to go from here? As an aside we are now in receipt of Child Tax Credit again as I was made redundant. I would really appreciate any advice, apart from the fact we can't afford to pay it back at the moment I have a huge moral issue with this idiotic system.

poppynurse · 10th November 2007, 08:38

we didn't return the annual declaration (we didn't retrun it because we believed we were no longer entitled)?

Without going into unnecessary detail, we appealed, it was rejected. My only grounds for appeal were:-

1. How can it be an overpayment if we were entitled to it? Surely this is a most inappropriate word to use in our case?

Confused - you didn't return the declaration because you believed you weren't entitled to the tax credit yet you are arguing against repaying??? Please clarify

Penny1969 · 10th November 2007, 09:25

Sorry, didn't realise that sounded misleading!

We didn't think we were entitled to any payment for the next year as my husband had a payrise that took us over the threshold. The revenue has confirmed we were entitled to the money they are now trying to recover!

make them aktiv runners · 11th November 2007, 01:39

Quote:

Originally Posted by Penny1969

Hi Guys,

The debt collection agency were very understanding, admitting the system was a farce and we should count overselves lucky we didn't owe several thousand!

Very unusual comment for these forums!

If you did not return the annual declaration then it is the current tax year credits that would cease. EG if you did not return the declaration for 2004/5 then they would cease payments after the deadline for returns in 2005/6. The deadlines are set as by that point HMRC would have your details for the previous year anyway.

Unless your household income is way above average you would be entitled to a minimum of £545pa anyway.

splashin · 16th November 2007, 19:20

Please visit this site
http://www.taxcreditoverpayment. pwp.blueyonder.co.uk/

It will guide you through the procedures of what you must do. Thee are also lots of people waiting to share their own expierences and offer advice

Splashin

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