TAX CREDIT OVERPAYMENT - Notional Offset How Does this Work

[hales7]

Hi All

 

I was wondering if their is anyone here can help. I am going out of my mind with worry. Stupidly I never told the tax credits people that my partner moved back in with my Sept 2010. The reason for this was I he was not working and I did not know how long we would last. He had an affair and we had split up this was just a trial to see things worked out for us. Anyway, to cut a long story short he as not worked since returning to live with me. I had a letter Jan this year saying that my claim as a single person was under review because they had reason to believe I was living with a partner through a credit reference agency that they use. I immediately call them and said this was an oversit on my part and gave them the correct date he moved back in with me but told them he as not had a job since this date. I have now received 2 letters one saying on I owe 5k for 2010 and one saying I owe 9k for 2011. I have also received a letter saying my Tax Credit Claims have now Stopped. I call them and told them my situation they said they would send a claim form out straight away and went through with me whether I qualify or not. I was told to put joint claim in and it would be back dated however I have been told today that this will only be done for 3 mths. I have been racking the internet for help as I really do not know how I am to pay over 15k back and there is something call notional offset can anyone give me advice. I feel that it I have to pay this debt I might as well give up my home my job and my life basically. When my husband had his affair it changed me and I have never been the same person and now with this to deal with on top I really really dont know what to do.

[hales7]

I have had a similar situation, told them partner been with my since 2010 now got over payment bills for 2 year one saying 5k and one for 9k have spoken to the overpayment team today and made arrangement to pay back alittle each month until my joint claim is sorted. I have been told that this will only be back dated 3mths though and anything else I will need to pay back, however I have read about the notional team who can off set and back date further. I have been told this as to be when my joint claim is accepted. I am really worried. I have a low income my partner is not working and this could mean me losing my house. I am across this thread today and so glad. This is all I can think about sitting here at work right now feeling sick

[hales7]

I have to tell my partner tonight about the overpayment amount and what it means to our budget the next ten years or so. Not even sure if I will get anything reduced from my 15k bill. Joint claim or not I now have this hanging over us like a big dark cloud. x

[hales7]

I never imaged i would have to pay back that amount but it is every single penny they paid me from the date I should have informed them that my partner had moved in even though we would have probably got more if I had claimed as a couple. I just told them the truth and I do feel better, I would say they have been very understanding in helping me make arrangements to pay which is going to take a very very long time I feel better that there is going to be no investigation. I would advise anyone with anything to declared does it as soon as possible to avoid getting into the mess I have. I have been told there will be no furhter charges or investigation which is the main thing. xx

[folle]

Hales I have just read your bit I am thinking about plucking up the courage to phone them tomorrow as I want mine sorted ! Everyones seems to be getting sorted ! I need mine sorting out

[folle]

Hales have u read all my thread! What do u think I should do ! I went to cab and they wrote a letter on my behalf! But I just want this over with x

[hales7]

folle, I have been reading your thread today and really do feel for you I have been going through the same thing as you for over a week I received my letter on friday telling me how much I must pay back and was so scared this morning when I call them. But things have worked out and although I am going to be worst off financially I really do feel I can now breath easy knowing they are not going to be snopping with all my financial and personal information. If you really want this to end. Just let the know everything even if you do end up owing them its better than the way you are feeling right now I could image. xx

[jadeybags]

I never imaged i would have to pay back that amount but it is every single penny they paid me from the date I should have informed them that my partner had moved in even though we would have probably got more if I had claimed as a couple. I just told them the truth and I do feel better, I would say they have been very understanding in helping me make arrangements to pay which is going to take a very very long time I feel better that there is going to be no investigation. I would advise anyone with anything to declared does it as soon as possible to avoid getting into the mess I have. I have been told there will be no furhter charges or investigation which is the main thing. xx

 

If you should have got more, you really should go visit CAB about that, sorry but I just don';t see why people should be paying back money that they should have been entitled to anyway. Regardless of if they should have updated their circumstances. That's not right. The fact you didn't update your circumstances actually went against you. Don't thank them for being 'understanding'!? Of course there won't be any further charges or investigation, because if there was it would show them up to be immoral in the least!

That's just not right???

[cranberryjuice]

hi hales, i have heard about this too so will be watching this thread with interest, have you sorted out your joint claim yet?we filled ours out last night and judging by the online calculator we were entitled to pretty much the same, they say he was living here from july 2010 so we have an 8k overpayment that i need to pay, if we are entitled to our new amount we would of been back then so that takes what i owe down a drastic amount. i will have a dig around on the internet later .

[hales7]

Hi Cranberryjuice, I only put in our joint claim Friday so until I hear back from them I can,t do anything however put a note on your joint claim before you send if not already done so, to ask for your joint claim to be looked at by this department. That way they can do it straight away. I didnt do this that is why I now apparently have to wait for mine to be dealt with first. Good Luck xx

[hales7]

Hi Guys

 

Just wanted to up date you all. That today I have finally received my Claim accepted as a couple, and as advised this is just £2.00 more per month that if I was claiming as a single person. I have now asked that this be looked at by the Notional Offset team which they have said will be done today. Hopefully my huge amount owing to them should reduce to around 5k rather than the current 15k. I now can see light at the end of the tunnel and wanted you all to know that although very worring when first trying to sort out the mess we find ourselves in there is hope.

 

Hope you all get sorted quick.

 

xxxx

[cranberryjuice]

hi hales, i have had my new award through too,along with back payment of 15 weeks??????

 

did you?

 

i will be contacting the regarding the notional offset very soon, as soon as i get the payment - meant to be tomorrow, i was actually entitled to nearly the same so am hoping they will quash most of it.

 

lets keep each other updated.

[jowster]

Hi - i am in the same situation - had my single claim stopped, stupidly allowed my boyfirend to use my address for credit and it showed on my credit file as a financial association, plus he was staying over around 4 nights a week, hence I received the letter for reviewing 2 years 2010/2011 and 2011/2012.

 

They have asked me to pay back 9K from 2011/2012. I have now put in a new joint claim as he has moved in full time. The figure they have estimated on the new claim is much the same as it was on the now stopped single claim.

 

They have told me that they can only backdate it to the date I received my last payment under the single claim which would be 4 weeks ago - should I have asked for them to backdate it 3 months.?

 

I will be asking for the notional offsetting when the joint claim is accepted as I wasn't aware you could have this done until the last few days.

 

Really worried about what will happen if they don'y accept my request, when I do it, for notional offsetting as I have read on Citizens Advice site that if the error was found due to a compliance check rather than the claimant notifying them, that they may not consider offsetting.

 

Also how long are the new joint claims taking to go into payment ?

 

Cranberryjuice - did you ask for backdating or was it done automatically?

 

Having to borrow money to survive so would like to try and work out an estimate on how much they will pay.

Take care

x

[jowster]

hi hales, i have had my new award through too,along with back payment of 15 weeks??????

 

did you?

 

i will be contacting the regarding the notional offset very soon, as soon as i get the payment - meant to be tomorrow, i was actually entitled to nearly the same so am hoping they will quash most of it.

 

lets keep each other updated.

 

Hi - how long did the new joint claim take to process to payment - did they automaticallt backdate it or did you ask for ths to be done

 

Thanks

D

x

[jamieprec1979]

hi - how long did the new joint claim take to process to payment - did they automaticallt backdate it or did you ask for ths to be done

 

thanks

d

x

 

bumping for responce

[cranberryjuice]

they backdated and paid us 3months, cant understand why though!!!!

 

had an 8k bill today from them with 12 months to pay....ok then....will ring them next week regarding offestting it - should reduce bu 5.5k,will let you know how i get on....

[jowster]

they backdated and paid us 3months, cant understand why though!!!!

 

had an 8k bill today from them with 12 months to pay....ok then....will ring them next week regarding offestting it - should reduce bu 5.5k,will let you know how i get on....

 

Hi - thanks for letting me know about the backdating.

 

How long did it take for you to start getting payments from your joint claim after you had sent it in ?

 

Thanks

[cranberryjuice]

HI all, thought i would just update, called the overpayment team today (4 weeks after getting the bill for 8k!)

 

they will not do a notional offset as i have a new joint claim, but could of if i had a single claim - how silly!

 

So I have set up a repayment plan of 67 pounds a month for the next 10 years - lovely!

 

would be so much easier if they could take it out of my new claim,im so cheesed off!

[jowster]

HI all, thought i would just update, called the overpayment team today (4 weeks after getting the bill for 8k!)

 

they will not do a notional offset as i have a new joint claim, but could of if i had a single claim - how silly!

 

So I have set up a repayment plan of 67 pounds a month for the next 10 years - lovely!

 

would be so much easier if they could take it out of my new claim,im so cheesed off!

 

Hmm - think they have told you wrong on the Notional Offsetting - could have done it if you claimed single - so what would they have offsett it against.

 

From what I understand and have been told by HMRC Notional offsetting is when they look at what you would have been paid ,if the claim where the overpayment has come from ,was made in the correct capacity as a joint claim. They can deduct what you should have been paid as joint from what you were paid as single thus reducing the overpayment.

 

This confirms as well

http://www.hmrc.gov.uk/manuals/ccmmanual/CCM15725.htm

 

I would contact the helpline and ask them to refer the overpaid award to the Notional Entitlement Team, who are a different department to the team that deal with setting up a repayment plan. (D & B - Debt & Banking ?)

[gildo]

Hi,

I just got my letters telling me how much i owe for 2010 -2012 ... a grand total of £14,000. Unsure what i'm supposed to do next. Can anyone help me with this. Was reading on another thread were someone was fined as well as having the overpayment. Do I contact HMRC and ask them to agree a repayment plan with me?

[asiangal33]

Has anyone been successful in applying the notional offsetting on an overpayment? Ive had an overpayment,and the case has now been referred,only last month,wondering how long it takes-meanwhile i am making repayments..anyone help?

[hales7]

Hi

 

Just thought I would pop back with an update to my previous threads re Tax Credit overpayment. I last spoke to the Tax Credits 2 months ago and since April I still have heard nothing from the notional offset team apparently they have no time scale to work from. I am paying the 15k overpayment back monthly with a real struggle. I feel quiet angry with myself for putting us in this postion. As anyone else had any luck with the notional offset team would love to hear if you have

[honeybee13]

Hello there and thank you for the update. I hope someone gets back to you about your problem.

 

Good luck, HB

[folle]

Hi Hales7

i had to pay back about 12 grand, as they would not accept anything i was telling them, even though i sent the proof, still was not enough

i wish i had tried to offset it, but i was to ill and now paying back £50.00 per month, i dont see why we should have to pay money back which

we should have been entitled to. let us know how you get on

folle xx