Repayment of CTC

[Viking_Raider]

I am actually posting on behalf of my girlfriend (she’s actually quite upset, so I hope that you can help)

My girlfriend first claimed CTC in February of 2007, the claim was (eventually) approved, and the payments started to arrive.

Everything continued normally until August 2007 when the payments abruptly stopped. When she contacted the tax office, she was told that she should have submitted another form in July. She pointed out that no form had actually arrived, so they dispatched one to her. This form was duly filled out and returned. When, after a little while, she had not heard anything, she contacted the tax office and was told that no form had arrived. Another form was dispatched, filled in and returned. Again nothing was heard for some time. Again, having contacted them, they denied receiving the form. A third form was dispatched, filled in and (this time) sent back by registered post.

When the tax office was contacted again they said that they had found two of her forms (one, apparently, had been sent to the wrong department and they had not bothered to redirect it). Eventually this was all sorted out and the payments recommenced.

My girlfriend then received a notice that all the payments between the beginning of the tax year and the end of July would have to be repaid. She has sent in the appeal form and has just been told that her appeal has been turned down.

Any idea where we stand on this? The only way forward seems to be through her MP (who she contacted today).

[Lula]

on what grounds are they asking for the monies to be repaid?

[Viking_Raider]

They say that the form that went in at the end of July is a new claim and that the previous claim ran out at the end of the tax year - so everything from the beginning of the new tax year until the end of July was apid in error.

Thing is, on all of their forms it says "if your circumstances change, you need to tell us" - the circumstances hadn't changed, so there was no reason for her to send anything in. Additionally no new form had been sent to her, so (obviously) she had no form to send back to them.

[Viking_Raider]

Right - we've written to her MP - seems that he's really lost it with the whole CTC mess - he's gone straight to the main guy at the top to see what can be done. I'll tell you what happens when the next bit of post arrives!

[Goldlady]

We have had no award notices from the tax credit people for two years. Apparently they are in a print queue somewhere. We still get the money as I have spoken to the helpline a few times. But you are quite right - if your circumstances have not changed you do not need to tell them and you cannot respond to letters you have not received. I am sure you will get there with your MP on the case.

[Viking_Raider]

Right, we finally got an answer from them.... (or, rather, our MP did) dated the 7th of May

Thank you for your letter of 6 February 2008, regarding your constituent xxxxxxxxxxxxxxx of xxxxxxxxxxxxxxx, xxxxxxxxxxxxx, xxxxxxxxx xxxx xxx and her claim for tax credits. I apologise for the delay in replying.

I am sorry for the problems that xxxxxxxxx has had with her tax credit claim. Please allow me to explain why we ended her 2007-2008 award and why we have asked her to pay back overpaid tax credits of £853.02 Child Tax Credit (CTC) on her 2007-2008 award.

On 24 April 2007 we sent xxxxxxxxx a 2007-2008 annual declaration and asked her to confirm her annual income and circumstances for her 2006-2007 single claim by 31 July 2007. Unfortunately we did not receive this information from xxxxxxxxx and our phone records confirm that xxxxxxxxx did not contact us between 24 April and 31 July 2007.

On 20 August 2007 we sent xxxxxxxxx a final 2006-2007 award for £247.26 CTC. As xxxxxxxxx had not confirmed her actual 2006-2007 details we had based her award on the latest detail we held.

On 21 August 2007 we ended xxxxxxxxx’ 2007-2008 award and sent her a statement of account (SOA). On the SOA we explained that xxxxxxxxx was not entitled to further payments on this award, however, if we received details of her 2006-2007 actual income and circumstances within 30 days from 21 August 2007 we would restore her reward.

On 24 September 2007 xxxxxxxxx called to ask why her payments had stopped. We explained that it was because she had not returned her annual declaration by 31 July 2007 or within the 30 day period after the SOA was issued on 21 August 2007. We explained that we were unable to restore her 2006-2007 award and she would need to reclaim tax credits.

Xxxxxxxxx made a new claim on 29 October 2007. On 15 November 2007 we sent her a revised award notice for £1,654.62 CTC backdated the maximum period of 93 days, to 28 July 2007.

Conclusion

I am afraid that we are unable to restore xxxxxxxxx 2007-2008 award. We run an extensive advertising campaign in print and on radio and television to remind all claimants that they must renew their taw credit award by confirming their details for the previous year. We have no evidence that xxxxxxxxx contacted us with either her annual declaration details or told us that she had not received an annual declaration before 31 July 2007.

We accept that there will be claimants that do not receive their annual declaration or do not return their annual declaration before 31 July 2007. When we end a claim because the claimant has not confirmed their details, we will stop payments to show that claimants have not met their responsibilities. We send a SOA notice to tell the claimant that payments have stopped, and we give a further 30 days to confirm their previous year’s details. Once the 30 day period has passed we are unable to restore an award. Xxxxxxxxx contacted us after the 30-day period had ended so we were unable to restore her award. It is correct that we ask her to pay back the overpaid tax credits on her 2007-2008 award.

I appreciate that this will come as a disappointing reply for xxxxxxxxx but I hope that she finds the information in this letter helpful. If xxxxxxxxx has any further general queries, she should contact our helpline on 0845 300 3900. The opening hours are 08:00 to 20:00, seven days a week. For constituency queries please continue to use our dedicated MP hotline, and we will be happy to assist you.

Dave Hartnett



OK – a few things about this……

1) My girlfriend never received anything from them – her payments just stopped.

2) She had to send her new reward claim in 3 times (the third time by registered post) before they finally admitted to receiving it (and, as stated earlier, one of the ealier forms was then found).

3) Her circumstances have not changed at all – so that HM revenue and customs can see that they had been paying her the correct amount.

4) When the new claim was approved, the back-dated portion arrived as a “lump sum” and was used to pay off outstanding bills etc. Then, having given her a payment of three months worth of CTC, a month or so later they then demanded repayment of over four months from the previous year!

I have no idea where this leaves her – it seems that she will have to pay back 4 months plus payments – though (as she has no money whatsoever) how this is to be done I have no idea – if I had any money myself, I’d pay it – but I’m as strapped as she is.

I have seen that adverts that they talk about (at the time I didn’t know that she was claiming CTC though, so it didn’t really make any impact on me personally). She, on the other hand, was in and out of hospital and was in no state to notice very much of anything let alone keep her affairs in order (cancer treatments do that to you).

Interestingly, though, this year she received both the declaration and a new claim form at exactly the right time – not certain whether this shows that they’re getting their act together, or whether she’s been put in a “make certain this one gets done” pile.

So – a warning to you all – even if you have not received anything from them – make certain that you get a form (where from, I’m not certain – the post office possibly) and get it sent in!

[Viking_Raider]

Oh - and, personally, I now understand why people are a bit wary about claiming tax credits!

[Viking_Raider]

OK - we've gone through the finances - there's no way that it can be paid back.

If anyone has any ideas about where we should go now we'd be very greatful!

Currently the idea is just to go to court and say "we just don't have it".

[Goldlady]

Have you made it clear to them that she was somewhat ill at the time this was all going on? I can't believe that the MP has left it the way it is. After all she was entitled to the money and she had done all she thought she had to do.

Don't give up yet. Are they actually asking for the money back or are they going to take it off future payments, which is what they should do.

[Viking_Raider]

They want it back - in fact it looks like they may be going down the DCA route to get it.

The other problem is that, even if she had it taken from her payments bit by bit, she's already stretched to the limit - so that would only put off the problem.

[Goldlady]

Is she working as well? I have heard of someone else who had this problem and had to repay money she was entitled to because she had not returned the form she never received. I was talking to her earlier and she is paying back £30 a month out of her current award. If you are on full tax credit there is a limit to how much they can take off you each month, which I think is 10%.

If your MP has accepted their explanation I really don't know how to advise you, even though it is extremely unfair to say the least.

[Viking_Raider]

No, she's not working - she's on incapacity benefit - so you can imagine how tight things are!