Overpayment

[lollipop73]

My husbadn and I have had very rough few years and last year he moved out for a couple of months. About 3/4 weeks later I phoned the helpline and told them. And about a mth and half after that we patched it up and he moved back in.

 

I got a bill for an overpayment for the few weeks I didnt tell them he had moved out-around £900.

 

I rang them yesterday to ask what this was all about and was told that because I didnt tell them straight away ALL the money I was paid was repayable and there is nothing I can do about it. I then began to talk with them about him being back. I could have sworn I had rang and told them he was back in but they have no record of it so now ALL the money I have been paid since then now becomes repayable.

 

 

The amount I have been getting paid is actually LOWER than the amount I would have been paid had the claim have included him as he works over a certain amount of hours each week-off and on as self employed labourer.

 

It appears I have been overpaid by roughly 6k.

 

I just cannot believe it. My life was completely screwed up during the whole period of time-I know I called the council tax and told them because I have the bill in front of me showing the period when I got a single persons discount. I am now not so sure I told them he was back-and worse what if I didnt??

 

Can they really come for this unbelievable amount of money-I mean for us it may as well be 5million, I have looked at our incomings against our outgoings and we are short by around £14 per mth for everything.

 

Only last mth I had a guy at the door about my mortgage shortfall-£12k I have to somehow find. I feel like ending it all.

 

The girl I spoke to was pretty unhelpful and now my whole claim has been stopped and a new one has started.

 

My husband seems to remember hearing somewhere that I had a whole year to tell them about any chages and it is only advisable that I tell them as and wehn changes occur-but the only change was that there was another mouth to feed, his income at that time was less than nil.

 

I don't know what to do.

[honeybee13]

Hello there. I'm sure you'll have help on this forum.

 

I'm not sure who's overpaid you, is it benefits or tax credits please?

 

My best, HB

[lollipop73]

Sorry-I suppose because I am just wanting to pour it all out I have spoken in a confused way-it is the working tax credits that have overpaid me. I work full time.

[honeybee13]

OK, thank you for that. I'll move your thread to the HMRC subforum of the Benefits area because tax credits are paid by them.

 

HB x

[lollipop73]

thank you for helping

[lollipop73]

What is notional offsetting?

[Gbarbm]

Here's some info about notional offsetting

The Revenue has now introduced a new policy, with effect from 18 January 2010, of offsetting underlying entitlement [footnote 2] against overpayments of tax credits which arise when a partner has left or joined the household. Previously, offsetting was only allowed in restricted circumstances (see Bulletin 211 for details). The new policy will apply to overpayments incurred from 18 January and also to overpayments which arose before that date, which are still in the process of being disputed or repaid. Note, however, that any amount of overpayment which has already been repaid will not be offset by underlying entitlement. The policy will apply to overpayments identified 'in-year' and to compliance cases where overpayments are discovered after the end of the tax year.

 

The new policy provides for the offsetting of the amount of tax credits the claimant would have been correctly entitled to as a lone parent or member of a couple (underlying entitlement), against the overpayment incurred. This means claimants will not have to make any repayment if underlying entitlement is equal to or greater than the overpayment. These cases are likely to arise where a couple separate, or if a new partner is in receipt of benefit because s/he is unemployed or incapable of work. Where underlying entitlement is less than the overpayment, claimants will have to repay the difference. This is likely to apply where the claimant has a new partner who is on a low income.

 

Claimants who would have been entitled to more tax credits had they reported the change in their status on time will not get their additional entitlement backdated beyond three months.

 

Note that, in each of the three examples given below, the overpayments had not been repaid. Any amount repaid cannot be offset under the new policy.

[lollipop73]

thank you.

 

So in laymans terms would this apply to my own circumstances?

 

They would look at what I would have been awarded and should that have been less I would only have to repay the difference, and equally so should I have been awarded more I would be able to reclaim the additional amount backdated by 3 mths.

 

And why did the advisor not tell me about this=she definitely only said the debt stands and there is nothing we can do about it, maybe there is nothing I can do.

 

Sorry for going on-I am extremely concerned, I just cannot manage with this.

Edited March 13, 2012 by lollipop73

[Gbarbm]

I think you need to write in and ask about this. To be honest, the advisors sometimes are drafted in from other departments in HMRC and are just given basic training before they take the calls

[lollipop73]

I will have to do something, to have acquired-within a ten minute phone call a £5000 debt is not something I can deal with.

[Gbarbm]

Hi

 

Write to Steve Lamey Chief executive Officer, Benefits and Credits

 

HMRC

Tax Credit Office

Preston

PR1 4AT

Remember to send it by recorded delivery

Regards

Gbarbm

[lollipop73]

Thank you so much.

 

Are there any other threads on the site I would find useful- if only to help my mind at rest

[Gbarbm]

Hi lollipop

I'm not sure about similar threads... Somebody from the site team may be able to help with that, I think you have to click on the black triangle which will alert them.

Also, google COP 26 which gives details about tax credit overpayments

[honeybee13]

Hello Lollipop.

 

To do a search of this forum, follow the link below to the forum's 'front page' If you scroll down a little bit, just below Post New Thread on the left there is a grey line across the screen with various commands in it in black lettering.

 

Towards the right hand side is Search Thread. Type in your key words and it will show you any threads with those words in so you can start reading.

 

http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?160-Benefits-HMRC-and-Minimum-Wage

 

My best, HB