Tax Credits Overpayment - £2,900

[wonky100]

Hello all

 

Just thought I'd share my story just to add another example of how infuriating and annoying the HRMC are.

 

Hubby and I are both employed and self employed. Have always given honest info and on time.

 

Unfortunately in 2009/2010 we made a very large self employed loss. After the year end hubby rang HMRC to tell them of large loss and to offset this against employed earnings. During the telephone conversation he was asked about our 2010/2011 earnings. My hubby told them he'd already told them what our earnings would be for 2010/2011. The lady wanted to know what our 2010/2011 profit or loss would be. Hubby advised he couldn't tell her what our profit or loss would be until year end but he did hope that it wouldn't be anything like 2009/2010. HMRC advised that it was best if we offset any profit or loss from our self employment there and then. Hubby advised he didn't want to do this and would rather wait until year end. HMRC advised that if we didn't offset then they would use the same figure for 2010/2011 as for 2009/2010, which had a large self employed loss, so hubby reluctantly agreed. Perhaps he should have stood his ground but they advised that if he didn't they would do it anyway. Damned if you do damned if you don't.

 

Fast forward to year end 2011 and loss nowhere near as large as 2009/2010, as expected. Tell HMRC July 2011 after self assessment completed and we are advised in August 2011 that we have been overpaid. No s**t Sherlock! We write to dispute overpayment. It takes then until December 2011 to advise pay up. We have a copy of the telephone recording when they advise that if we don't change our earnings then they'll do it anyway, plus after several letters we have a letter not apologising for not giving us the service we "feel2 we should have received but apologising for "we have failed to provide the level of service which you are entitled to expect and should have received". HMRC mess up and give misguided advice, but hey, still pay up.

 

To boot their debt management team are now chasing and are threatening debt collectors/bailiffs and this was even before we received their last letter with the apology.

 

Letters say if we can help, please call us. But you call them and they can't help.

 

You ring the debt management team and they say there's nothing they can do. Can't call the wolves off unless HMRC tell them the matter is in dispute. They tell us to call the helpline. The not so helpful helpline can't help!

 

Letter has now been sent to The Adjucator's Office with a copy to the debt management team and a copy to the CEO at the tax office.

 

No longer entitle to any benefits since the threshold was reduced, so can't offset any overpayments against future payments. So not only do we not receive any benefits anymore but are now faced with having to pay this back!

 

I know we won't win as it's HMRC afterall, but I'm going to put up a bl**dy good fight. In the meantime, trying to save as much as possible!

 

HMRC staff should know what they are doing. They shouldn't be allowed to get away with giving misguided advice.

 

Just thought I'd share this.

[jadeybags]

Frustrating isn't it. Any benefit depts should know what they're doing because even with the council, when one of their staff mess up your claim, you still have to repay them.

[Sparklez30]

You can sometimes fight the big guys - I assisted my sister in a complaint to the benefits people whereby they had underpaid her for 2 years without her knowledge as they put sanctions against her (relating to csa claim) without telling her and they refused to backdate the increase. It took 3 letters but we got the money she was rightfully owed. They admitted the CSA information was a mess so they couldn't be sure she hadn't sent back the relevant form (which she had).

 

I also had a disagreement with the job centre over incorrect information they gave me when I needed to sign off of job seekers allowance and again they refused to pay me 2 weeks money but after 2 complaint letters to the job centre and then a call in which I asked for the chief executives contact details they decided they were wrong and paid me what I was owed!

 

Its always worth arguing as it only costs a few stamps My tip is to find the top person if your complaint gets nowhere and send details to the chief executive!

[wonky100]

Thanks for the responses. Wasn't expecting any. Just thought I'd share my experiences.

 

Letter sent to the Adjuicators, The Debt Management Dept and Steve Lamey, CEO, Benefits & Credits 22 Feb. No acknowledgement from any of them yet. Will let you know how I get on eventually but am not holding my breath.

 

Thanks again for your support.

[Sparklez30]

good luck wonky100 !!

[wonky100]

Quick update - we lost! No surprise there then!

 

But at least they've agreed that we can repay them over 3 years rather than 12 months that they were originally demanding!