Overpayment

[confused1977]

Hello,

 

I live with my ex partner, and we have 2 children together. we are however not a couple. We live together because there is no other family who can help with child minding.

 

We split a couple of years ago and she moved into her parents house with the children, her parents have been having some money problems and have been struggling to make ends meet, and there is a risk that they may lose their house and she was worried that they would end up having nowhere to live.

 

I came into some money and used it for a deposit for a house and we agreed that we could co habit for the kids's sake and her job means she works really early mornings or late nights and I can work around these shifts, so when she is on mornings, I can get the kids up and ready for school and drop them off before I go to work. and when I start early on a morning she sorts out the kids and goes off to work when I come in.

 

When I was arranging the house I was advised that it would be better to try to pursue it together, as you dont have to be in a relationship to buy a house together. And if something happened to me down the line my kids would be looked after, so i put up the deposit and agreed to put the ex's name on the mortgage and in return she would not demand money or chase me up from the csa or anything like that.

 

Sounded like the ideal situation, i got to spend more time with the kids, they got somewhere to live.

 

However she didnt declare that I had moved in as we dont consider ourselves to be a couple, we live our own lives, i cook my own tea, buy my own shopping.

 

now she has received a letter saying that she has been overpaid tax credits as there is paperwork tying us together since we put in for the mortgage, i had bank statements sent there as thats where we met the financial advisor about the mortgage, and it was easier than me forgetting them.

 

I am now worried what is going to happen next.

 

she has 30 days to appeal the decision, she doesnt want to as when she called up about the letter she was told that appealing could involve going to court and having hearing and if she doesnt win the appeal she will owe more money that she already does.

 

Her part time wages barely cover the gas and electric and her other bills. will they allow her to pay it off over a long term?

 

And we have now been told to do a joint claim, if thats how it has to be, even though we arent a couple will they look at my earnings to put towards paying off this overpayment.

 

can anyone offer any help or advise?

[flumps1976]

The problem with your scenario is that although you aren't an actual couple in a relationship, you are still financially linked.

 

You do have two choices you can appeal against the decision or you can decide to put in a couple claim and both incomes will need to be declared for the assessment, if there is any entitlement then the overpayment will be recovered directly from any entitlement that you have if no entitlement then you will be asked as a couple to put in place a repayment plan.

[confused1977]

so if we put in a claim as a couple, i know they will look at our combined incomes when it comes down to what are entitled to receive from the tax credits.

 

she says we would be entitled to £30 per week or so for what we earn together. Would any repayments from the over payment come from that £30?

 

or would they expect us to pay back more than that?

[estellyn]

she won't owe more by appealing - there are no court costs involved in appeals, so whoever told her that is very much mistaken.

[confused1977]

she was told that by the person on the phone from tax credits, they also went on about my bank statements at her old address, and where was my car insured? as i was committing an offence if my car was not kept at the address it was declared at...... like car insurance is anything to do with them..

[flumps1976]

The car insurance is used used as part of the bigger picture where they look at if you were linked financially, although I do understand what you mean, did you have a fixed address during the time you were seperated and she claimed as a single parent?

If there is any entitlement then they will look to recover any overpayment from your award. They may reduce the award but it will also depend on the final figure of overpayment etc as to how they arrange the collection of overpayment.

[id6052]

she won't owe more by appealing - there are no court costs involved in appeals, so whoever told her that is very much mistaken.

 

unless the advisor was referring to applying a penalty

 

http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/penalties.htm

[estellyn]

unless the advisor was referring to applying a penalty

 

http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/penalties.htm

 

Yes but whether you appeal or not should have no bearing on whether a penalty is applied - holding a penalty over someone's head who thinks that their overpayment decision is wrong is pretty reprehensible. I also think that if they tried to explain it as 'by appealing you've not been very helpful', they'd be in trouble as penalties themselves can be challenged, and to be seen to be interfering with appeal rights would not be viewed favourably.