Tax Credit - case going to C/Court

[turnedworm]

I am being taken to court - the date is set for this Friday 13th.

 

I am self employed and my wife and I claimed Tax Credits a few years ago. I supplied the Tax office with estimated figures. The business struggled for three years and it was all I could do to stay in business - let alone file accounts and all the red tape etc. I know this is no excuse!

 

Anyway at the start of last year the Tax Credit dept asked for all the money back c.£5k. This was 3 years worth of award. I phoned them as I had three years of self assessment figures being processed by my accountant. A few days later I phoned them back and gave them the figures over the phone. As my actual figures were less than the estimated ones I expected that they would owe us money- though I didn't expect to get it as the numbers were late.

 

A few weeks later they sent the statement for the three years in question and it was clear from this that they had recorded the numbers incorrectly. They had put the figure from the wrong year on one statement and left the estimated figure on the other! The result was that they still thought I owed £2k!! I saw their error and phoned to have it corrected and sent a letter correcting them. They wrote back 3 months later saying it was too late to resubmit the correct numbers and the case was closed.

 

A while later a CCJ came through for me and my wife. I have submitted the relevant forms and the case goes to court this week. I have spoken to the Collections Dept in Bristol who have brought the case and they say that they cannot update the figures!

 

I feel I have a reasonable case as they took the figures (late) once and miss recorded them. As these were given on the phone it is hard to prove though. When this error first came to light I spoke the the Tax Credit dept and even offered to travel to Preston to sit and talk it through with a member of staff but was told this can't be done.

 

I have a question about the court case itself - my wife has been on anti depression drugs and just got off them. She would be far happier for me to go on my own on Friday. Would it be OK for her to send a letter to the court to explain this and that she is happy for me to put the case on my own? Has anyone had any similar dealings with the Tax Credit Dept? It seems a very one-way system as if the error was in their favour they would be (and indeed have) quick to claim it back.

 

If the correct figures were put into the system it would show they owe us money and not the other way around.

 

Any thoughts would be great!

[Zamzara]

Unfortunately the news is not good. Tax credits overpayments are collected using the same powers as income tax arrears: once an overpayment decision is made, you have 30 days to appeal.

 

Once the overpayment goes to the court stage it is just a formality: the Revenue just register the decision notice as a court judgment, there will be no investigation into the circumstances once this stage is reached.

 

You could request a late appeal. The request must go to the tribunal service and an independent tribunal chairman will consider if there are good grounds for the appeal being late. Illness could satisfy this, but it is a fairly high bar.

[turnedworm]

My main argument is that they are the ones who incorrectly recorded my figures. They accepted these figures and amended the numbers - albeit incorrectly.

 

If they had correctly entered the numbers when I phoned them in last Feb then it wouldn't have gone to court. Should I have requested a recording or transcript of the original conversation when the figures were given? Is it too late t do so?

[turnedworm]

I'm just reading through my files before the case tomorrow. In one letter from the court the judge / Court sent a letter stating that he considered the claim falls "outside the civil procedures rules practice direction 7d".

 

Does anyone know what this means?

 

When I took my allocation questionnaire the court staff seemed a little confused as to why I had been instructed to do so in a case with HMRC.

[poppynurse]

Good luck today, let us know how it goes.

[turnedworm]

Thanks - shall let you know!

 

I'm not looking to get the money that would have been due - my actual self assessment figures were in late. I'm just trying to show that I shouldn't have to pay the money back that they paid out.

[turnedworm]

UPDATE

 

The case has been adjourned - the judge was not sure if she had the jurisdiction to judge on Inland Revenue matters. It seems it doesn't come under the civil procedure rules mentioned above but that's not to say it doesn't come under others.

 

Rather confused now!