Overpayment..advice please

[Emma Royd]

Hi everyone hope one of you wonderful people can give me some advice

I've been receiving chld tax credit of £50.22 weekly on a thursday. Last thursday morning went to draw the money out of my bank and hadn't received the payment. I rang tax credits up straight away and they said that my payments had been stopped because I hadn't filled in my annual review pack they sent me in April.

I got made redundant on 16th May and rang up the tax credits and informed them. (Also had a problem with working tax credits as they wouldn't pay me the 'four week run over').

When I rang tax credits on thursday, they chap went through my details and said my tax credits would be reinstored. I asked when and he said he didn't know. (do they get backdated?). I told him all I had to live on was £60.50 and how was I supposed to feed myself and my son and pay all the bills. Got the usual....well I appreciate that Miss Royd but.....

Now this morning I got an envelope through the door from tax credits. Heres me thinking it must be a giro to cover for last week and instead its a letter from them saying that they've overpaid me and I have to pay them back £1270.17 made up of £879.00 child tax credits and £391.17 working tax credits. (for year 2008-2009)

Its no use ringing tax credits up cos its like banging your head against a brick wall. They had me in bits over the four week run over.

Any advice what to do now would be appreciated. I'm almost sure that I don't owe them the money.

thanks in advance

Emma Royd
xx

[emmaf01]

Get in touch with your MP and make an official complaint to tax credits.

Try reading this thread to see if there is anything relevant to you.

Tax Credits brick wall

[Zamzara]

Did you complete the annual declaration? If not, they will treat everything they paid you in the previous year as an overpayment. This practice is an absolute disgrace but the whole system is set up around treating every claimant as a tax evader, simply because it's dealt with by the Revenue.

If you have a good reason for not completing the declaration then appeal to a trubunal. The time limit is 30 days from the decision so don't get bogged down in their internal system.

[Spiceskull]

Originally Posted by Zamzara

Did you complete the annual declaration? If not, they will treat everything they paid you in the previous year as an overpayment.

Not quite true - everything in the current award period (i.e. since 6 April) is treated as an overpayment, as the payments were 'provisional' and based on an estimate of the previous year's household income. As the estimate has neither been confirmed/denied, and the declaration not completed, the system assumes that the customer is no longer entitled to TC, and so terminates the award.

Once the 1st specified date has passed (usually July 31) then TC will start issuing 'Statements Of Account' It is once this is issued that the 30 day 'extension' starts, and for some people this will be from the end of August.

If you call TC helpline, and ensure that you have actual figures for last year's income to hand, the claim can be reinstated. You will need to confirm that all details held are correct, so it is also a good idea to have your last award notice to hand.

Once all details have been uploaded/updated, the system will recalculate your current year award, and the payments to date (from 6 April) will be classed as 'paid' within the current award.

Originally Posted by Zamzara

but the whole system is set up around treating every claimant as a tax evader, simply because it's dealt with by the revenue

Not true either - the TC system is one of entitlement, not recovery, so there is no tax to be avoided. That does not mean to say that TC is oblivious to fraud, but that is a completely different issue...TC is about entitlement, and claiming what you are entitled to...and not claiming what you are not entitled to...